Small Cap Feast

6th February 2024

Dish of the day
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Dish Of The Day:



Whats baking in the oven?

Potential Initial Public Offerings:

12 January: The London Tunnels PLC announces its intention to seek Admission to the Standard Segment of the Official List and to trading on the Main Market of the LSE. The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940’s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market. The Company is expected to have a market capitalisation of approximately £123m on Admission. Delayed: Expected Admission was before the end of January 2024.

Reverse Takeovers:

30 January: Location Sciences Group Plc is proposing to acquire the entire issued share capital of Sorted Holdings Limited (Sorted) for a nominal consideration of £1.00 (Acquisition). Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Pursuant to Rule 14 of the AIM Rules for Companies, the Acquisition constitutes a reverse takeover. Capital to be raised on Admission is approximately £2.0m via a subscription for new Ordinary Shares. Anticipated market capitalisation on Admission is approximately £6.68m. Expected AIM Admission date is 19 February 2024.

Change of Market:

Banquet Buffet

Alumasc Group 179p £64.7m (ALU.L)
The sustainable building products, systems and solutions Group announces results for the six months ended 31 December 2023. Group revenues up by 6.4% to £47.8m (H1 FY23: £45.0m), as a result underlying profit before tax grew 12.4% to £6.3m (H1 FY23: £5.6m). Net bank debt at December 2023 was £7.4m (H1 FY2023: £6.8m), after net cash outflow on ARP acquisition of £6.5m which was for a maximum cash consideration of £10.0m on a cash and debt free basis completed in December 2023. The Group's focus on sustainable building products, cost base management and outstanding customer service, will help mitigate the external geopolitical and economic environment, expected to continue to create uncertainty for the remainder of the year.

Biome Technologies 110p £4.2m (BIOM.L)
A bioplastics and radio frequency technology business, provides an unaudited pre-close Trading Update for the financial year ended 31 December 2023. Group revenues for the year ended 31 December 2023 were in line with current market expectations at £7.0m and 13% ahead of the previous year (2022: £6.2m). The Group had a cash balance at the year-end of £0.6m (31 December 2022: £0.8m) and had 2026 convertible loan notes outstanding of £0.85m and no bank debt. The Bioplastics Division revenues for the year to 31 December 2023 were £6.0m, an increase of 36% on the prior year (2022: £4.4m). The Board is pleased with the strong progress of the Bioplastics division throughout 2023.

Eckoh 44p £127.8m (ECK.L)
The provider of Customer Engagement Data Security Solutions, announces an update on total contracted business and new contracted business achieved in H2 FY24 by the end of January. In the first half ended 30 September 2023, Eckoh contracted new business totalling £24.6m. The Group further reports that the strong levels of contract wins has continued in H2 with over £20m of additional contracted business closed since 1 October 2023 and have already exceeded order intakes for a single year with record total contracted business of £45m year-to-date, of which c.£18m is new business. The new UK wins include a 3-year contract with a large UK-based media & telecommunications provider for voice and chat security worth £2.3m.

Filtronic 28.2p £60.7m (FTC.L)
The designer and manufacturer of products for the aerospace, defence, space and telecoms infrastructure markets, announces two significant contract wins with a global provider of low earth orbit (LEO) satellite communications equipment. The production order contract, valued at $9.9m (£7.8m), with revenue expected to be recognised within calendar year 2024, is for additional demand of Filtronic's innovative Cerus32 solid state power amplifier (SSPA) module. The second contract with the same customer is a development agreement to accelerate the design and prototype delivery of an E-band module that would form part of the satellite payload and provide downlink connectivity to the E-band ground station.

Novacyt 49.2p £34.3m (NCYT.L)
An international molecular diagnostics company with a broad portfolio of integrated technologies and services, has received formal notification from INEX Innovate Pte Ltd of its decision to terminate discussions regarding the acquisition of Yourgene Health Taiwan Co Ltd, as originally announced by Yourgene Health plc (Yourgene) on 13 June 2023. As a result, Yourgene's Taiwanese laboratory business will remain part of the Novacyt Group. The Board does not consider the divestment material and will continue to evaluate a number of options in relation to the future of the Taiwanese laboratory business that offer the best value to all stakeholders.

Oracle Power 0.028p £1.3m (ORCP.L)
The international project developer, announce the completion of a technical and commercial feasibility study (Study) undertaken by leading international construction engineering company, China Electric Power Equipment and Technology Co., Ltd. (CET), relating to the proposed hybrid renewable power plant for the group's green hydrogen and green ammonia project (Project) in Pakistan. The Project, which is being developed by the Company's joint venture company, Oracle Energy Limited (Oracle Energy), is targeting a 400 MW capacity green hydrogen production facility with annual production of 55,000 tonnes of green hydrogen. The completed power study confirms that the Project is expected to deploy 800MW of solar (an increase from the original 700 MW), 500MW of wind power, and 450MWh of battery energy storage to support the production of green hydrogen.

Physiomics* 1.6p £2.2m (PYC.L)
The mathematical modelling and data science Company supporting the development of new therapeutics and personalised medicine solutions announces an award of share options over ordinary shares of 0.4p each in the Company. The Company considers that it is important to incentivise its key executives to create shareholder value and, as such, the Board has approved the award of the following options to Dr Peter Sargent under the Company's existing share option scheme: 1) 1,354,725 Options with exercise price of 1.55p, 2) 1,354,725 Options with exercise price of 2.55p, being the exercise price calculated in (1) above plus 1p and 3) 1,354,725 Options with exercise price of 3.55p, being the exercise price calculated in (1) above plus 2p. All Options can be exercised within 10 years of the date of grant.

REACT Group 1.35p £14.4m (REAT.L)
The cleaning, hygiene, and decontamination company, announces its audited final results for the year ended 30 September 2023. Revenue increased by 43% to £19.6m (2022: £13.7m), as a result gross profit up 61% to £5.2m (2022: £3.3m). Adjusted EBITDA up 133% to £2.3m (2022: £1.0m), and the Company has cash as at 30 September 2023 of £2.1m. The Company announces it has completed its integration of LaddersFree during the year, and has good momentum into FY24 a strong first quarter.

Roquefort Therapeutics* 6.15p £7.9m (ROQ.L)
The biotech company focused on developing first in class medicines in the high value and high growth oncology market, provides an update on its pre-clinical drug development programs, Randox licencing agreement and out-licencing discussions. The Company has continued studies in validated models of NK cell activation and cytotoxicity and demonstrated an anti-cancer effect in leukaemia. The Randox licensing agreement is progressing well, and the Company expects to receive further milestone payments during 2024 and, upon success, this is expected to generate royalties for the Company from 2025. In line with its strategy, the Company is currently engaged in confidential out-licencing discussions with potential partners, including large pharmaceuticals companies and a specialist private equity fund.

Springfield Properties 82.5p £97.9m (SPR.L)
A housebuilder in Scotland focused on delivering private and affordable housing, announces that it has signed a new contract, worth £15.3m, with Highland Housing Alliance (HHA) for the delivery of affordable housing. The contract includes an initial bulk sale of housing, followed by a design and build aspect. The Group will receive £4.1m for a bulk sale of housing, which is scheduled to complete during the current financial year. The design and build phase, which is worth £11.2m, is due to commence in the coming weeks, with the majority of the revenue to be recognised in the Group's next financial year.

6 February 2024
*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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