Small Cap Feast

4th July 2023

Dish of the day
No Joiners today
Off the menu
No leavers today

Dish Of The Day:

No joiners today.

No leavers today. 

Off The Menu:
Early Equity Plc has left the AQSE Growth Market.

What’s Cooking In The IPO Kitchen?

Metals One Plc, a company focusing on acquiring natural resources projects with a focus on critical battery metals, including nickel, lithium, cobalt and copper intends to join the AIM Market. The Company will have interests in the Paltamo and Rautavaara projects (nickel, copper, zinc) in Finland (together the Black Schist Project) and the Brownfield Råna Nickel project in Norway (Brownfield Rana Project). These projects represent opportunities to develop deposits of scale, in stable jurisdictions, well situated to supply fastest growing European electric vehicle and energy storage markets. The Company aims to raise £2.5m at 5 pence per share with an anticipated market cap of £10.77m. Expected Admission date is 17 July 2023.

Ora Technology plc, a software company developing a digital carbon trading platform, offering users the ability to buy, sell and retire verified carbon credits in the voluntary carbon market, intends to join the AQSE Growth Market. Ora’s platform aims to allow access to carbon assets - and the broader carbon economy - with the goal of reducing the complexity of current industry practices, and an emphasis towards providing a simple and intuitive user experience.

Praetura Growth VCT plc, a newly established VCT announces its intention to float on the Main Market of the London Stock Exchange. The Company will provide growth funding to scalable businesses predominantly based in the North of England, across a range of sectors including technology and healthcare. The Company will be managed by Praetura Ventures Limited, a venture capital and EIS business associated with the wider Praetura Group, a Manchester based venture capital investor and small business lender. The Company is targeting to raise £10m at 1 pence per share, via an offer for subscription. The Directors will have the option to utilise an over-allotment facility that will allow the Company to issue a further 10m Ordinary Shares under the Offer.

CAB Payments Holdings Limited a market lender to business to business (B2B) cross-border payments and foreign exchange, specialising in emerging markets intends to join the Premium Segment of the Main Market. The Group announced revenues of £41.3m for the three months ended 31 March 2023 with the YTD adjusted EBITDA margin at 64%. The Offer is expected to comprise a secondary sell-down of existing ordinary shares by Merlin Midco Limited (a wholly owned subsidiary of Helios Investors III, L.P. and Helios Investors III (A), L.P.) CAB Payments has set an offer price of 335p per share, which will give it a debut market cap of £851.4m. Admission currently expected to occur in July 2023.

Breakfast Buffet

Access Intelligence 71.5p £91.3m (ACC.L)
The technology innovator delivering Software-as-a-Service (SaaS) solutions for the global marketing and communications industries, announces its unaudited half year results for the six months ended 31 May 2023. Total revenue for the period was £31.3m (H1 2022: £32.7m) with 95% of revenue being recurring (H1 2022: 93%). The Group's ARR increased by £1.4m in the period compared to ARR growth of £0.5m in H1 2022. The Group delivered an adjusted EBITDA of £2m (H1 2022: £0.3m), an operating loss of £6m (H1 2022: loss £7.4m) and held cash at the end of the period of £2.7m (H1 2022: £9.3m). As a result of the actions taken over the last two years to optimise the business, the Board anticipates the delivery of higher adjusted EBITDA and cash generation in the second half in line with full year expectations.

Alba Mineral Resources 0.17p £12.8m (ALBA.L)
The mineral exploration Company announces that it has been granted the ecological permits required for the planned dewatering and associated exploration of its primary target within the Clogau-St David's Gold Mine in north Wales, the Lower Llechfraith workings. The Ecological permits granted include; a European Protected Species Licence, Water Discharge Permit, and Water Abstraction (or Transfer) Licence. The Lower Llechfraith workings have all the key geological characteristics for the occurrence of high-grade gold mineralisation, including greenstone sills, Clogau Shales and structural complexity in the lode itself. Alba's 2020-21 surface drilling programme proved the downward continuation of the Llechfraith lode structure up to ~122 metres below where it was last explored on the No.4 Level; the target structure has been untouched by historical exploration and development.

Aptamer Group 4.25p £2.9m (APTA.L)
The developer of novel Optimer® binders to enable innovation in the life sciences industry, announces an update on trading and its working capital position. Unaudited revenue for the year ended 30 June 2023 (FY23) was approximately £1.75m, which is in line with the statement released by the Company on 5 May 2023. Looking ahead, the current pipeline for fee-for-service revenues for the year to June 2024 (FY24) is approximately £2.2m across 30 discrete fee-for-service projects (this figure does not include licensing opportunities). The Group is targeting a reduction in operating cash outflow to below £3m for FY24 following a reset of the cost base, and to reach positive cash flow by the end of FY26, which will require approximately £6m of revenue in FY26. The Group's unaudited cash balance at the end of June was £0.2m. Further funding will be required in the short term.

Augmentum Fintech 98.3p £167.7m (AUGM.L)
The European fintech fund, announces its audited annual results for the year ended 31 March 2023. NAV per share after performance fee increased by 2.4% to 158.9p (31 March 2022: 155.2p), driven by return for the year net of performance fee movements +1.9p and impact of share buybacks +1.8p. The Company reported gains on investments of £9.9m (2022 £56.7m), since IPO this represents an IRR of 18.5% on the capital deployed (31 March 2022: 22.6%). During the period, £19.9m has been invested in 2 new companies and 8 existing portfolio investments (31 March 2022: £60.8m invested in 7 new companies and 7 existing portfolio companies). Cash at year end of £38.5m, which has increased to £50.0m as at 30 June 2023 following the Company’s accretive exit from Cushon.

Corero Network Security 6.5p £32.5m (CNS.L)
The provider of distributed denial of service (DDoS) protection solutions, announces significant order momentum for its market-leading SmartWall® DDoS protection solutions and services across Q2 2023. The following Orders, which total $6m (average value per customer of $597k) over the course of the contracts include; three new customers, five customer expansions and two customer renewals.

Distil 0.38p £2.6m (DIS.L)
The owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, TRØVE Botanical Spirit and Diva Vodka, announces its final results for the year ended 31 March 2023. Turnover decreased 55% to £1.32m (2022: £2.94m) and Gross profit decreased 58% to £684k (2022: £1.63m). The Company reported an adjusted EBITDA loss of £785k (2022: profit of £9k) and an operating loss of £804k (2022: loss of £132k). It has been a transitional year for Distil, as it remodeled the business to allow the Company to handle all sales and marketing to its major UK retail customers directly, and appointed distributor Marussia Beverages to grow its brands within the on-trade and independent sectors. The Company believe the shape of the new business model will yield revenue upside from the current financial year onwards.

Kitwave Group 321.5p £225.1m (KITW.L)
The delivered wholesale business, announces its unaudited interim results for the six months ended 30 April 2023. Revenues increased 23% to £275m (H1 2022: £223.3m), resulting in a 52% increase in operating profit to £10.2m (H1 2022: £6.7m). The Group's gross profit margin increased to 21.6% (H1 2022: 19.8%) representing both margin improvements within divisions. Profit before tax increased by 48% to £8.3m (H1 2022: £5.6m). The Group's balance sheet as of 30 April 2023 had equity reserves of £74m (30 April 2022: £63.3m; 31 October 2022: £71.9m) and net debt of £64.4m (30 April 2022: £47.4m; 31 October 2022: £44.4m). The increase in debt relates to a new £20m banking facility utilised for the acquisition of WestCountry. The Board has declared an interim dividend of 3.75 pence per share for the six months to 30 April 2023.

Naked Wines 89.1p £65.9m (WINE.L)
The online wine retailer announces that its FY23 results, due on the 6th July 2023, has been delayed. The Group also announces that sales in the first quarter of the financial year have been below expectations largely as a result of reduced levels of new customer recruitment. Extrapolating current trends through the remainder of the financial year would result in sales of around £300m. Previous guidance given for the FY23 includes; Total revenue of c.£350m (flat on a reported basis, -6% to -8% on a comparable basis), adjusted EBIT of £15-18m, expected at the upper end of the guided range. Closing cash of £10m, with £49m total liquidity through continued access to its credit facility. The Group further announced that David Stead will step down as Chairman and leave the Board, and Rowan Gormley, founder and previous CEO, will assume the role of Chairman and will be appointed to the Board. Jack Pailing has also been appointed to the Board as an Independent Director. Jack Pailing represents Colebrooke Partners, which owns 368,116 shares, and brings experience in investment analysis and capital allocation to the Board.

Synectics 110p £19.6m (SNX.L)
An advanced security and surveillance systems Company, announces the award of a further contract, worth approximately £2m, to supply specialist camera stations for Saudi Aramco's Zuluf development programme. Further to the announcement on 13 April 2023 of the award of a £3.5m contract for the Process CCTV system for the Zuluf development programme, the Company, along with its integration partner 3W Networks, has now been contracted to provide the related Security CCTV system. A significant proportion of this additional contract is expected to be delivered by the end of the Company's financial year ended 30 November 2023, with the balance early in the following year.

Trakm8 Holdings 15p £7.5m (TRAK.L)
The telematics and data insight provider, announces its final results for the year ended 31 March 2023 (FY 2023). Revenues increased 12% to £20.2m (FY 2022: £18.1m), of which £10.5m was recurring revenue, a 7% increase from the previous year. The Group reported a loss after tax of £0.8m (FY 2022: profit £0.2m). During the period Trakm8 extended contracts with Iceland Foods and Sainsburys. In September last year, the Company announced a restructuring to focus on those market and products where it has been most successful. This was largely completed during the year and once complete will reduce the annual cash outflow by over £2.5m, helping to mitigate the effect of inflationary pressures on remaining costs. The Board expects revenues in the first half of the year will be broadly in line with last year but with much lower operating costs.

4 July 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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