Small Cap Feast

6th June 2023

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:

Ashington Innovation plc (ASHI.L), a special purpose acquisition company aiming to benefit from favourable price conditions for companies in the financial services technology (fintech) and deep technology (deep tech) sectors, has joined the Standard Segment of the Main Market. 

No leavers today. 

What’s Cooking In The IPO Kitchen?

Amicorp FS (UK) plc, an international specialist fund services group, intends to join the Standard Segment of the Main Market. The Company is aiming to raise up to US$6.47m via a placing of new shares and US$9.70m via a placing of existing ordinary shares. The final offer price will be established after a book-building process. The firm, which is part of the Amicorp Group, primarily serves start-up asset managers with initial assets under management ranging between US$10m and US$20m. Due 8th June 2023.

WE Soda, the world’s largest producer of natural soda ash, more commonly known in the UK as sodium carbonate or washing soda, announces that it is considering listing on the Premium Segment of the Main Market. WE Soda, an extractor of soda ash in Turkey and the US, is a subsidiary of Ciner Group, an industrial and media conglomerate. It is a high-margin business and last year it reported adjusted operating profits of $892m on revenues of $1.77 bn. The Offer would be wholly comprised of ordinary shares to be sold by the existing shareholder. Separately from and in addition to the Offer, the Company is also considering making an exempt public offer of Shares to retail investors in the UK through the PrimaryBid platform. The value of Shares sold will not exceed EUR8m equivalent (approximately £6.95m).

Altona Rare Earths, a mining exploration company focused on the development of a significant Rare Earth Elements mining project in Africa, intends to join the Main Market. The Company has withdrawn from the AQSE Growth Market and intends to list on 9th June 2023 with the new ticker (REE). £2m raised.

Breakfast Buffet

Ariana Resources 2.35p £26.9m (AAU.L)
The mineral exploration and development company with gold mining interests in Europe, announces its final audited results for the year ended 31 December 2022. Profit before tax was £5.0m, this was £2.7m less than 2021, albeit that year benefited from the profit of £6.4m on the part disposal of the Turkish interests. Administrative costs increased marginally on the prior year. Decline in the Group cash balances of c.43% from £16.4m to £9.4m, comprising dividends paid to shareholders amounting to £4m. The Group are undertaking several projects and jurisdictional reviews with the aim of securing a significant new flagship asset for the Company.

Barkby Group 5.5p £7.9m (BARK.L)
The roadside real estate business focused on building and scaling a high-quality portfolio of modern, ESG-compliant assets announces that its subsidiary, Cambridge Sleep Sciences, (CSS) the science-based sleep technology business behind SleepHub®, has granted a five-year global license, to Sleep Sense International Limited (SSI), enabling it to manufacture a Smart Pillow using CSS's SleepEngine® platform. Under the terms of the Agreement SSI holds exclusive rights in the pillow market subject to a Minimum Order Quantity, (MOQ) of 25k units in the first 12 months. Based on these MOQ's, CSS expects the license to generate royalty payments of £1.25m in the first 12 months and £3.0m in year two for the Company. MOQ’s and payments for years three, four and five will be agreed in November 2024.

Croma Security Solutions Group 52.5p £7.8m (CSSG.L)
The total security services provider announces it has entered into a conditional agreement to sell the entire issued share capital of its subsidiary Vigilant Security (Scotland) Limited to M&W Security Limited for a total consideration of £6.5m plus inter-company balances of £1.07m repayable to the Company. The sale of Vigilant follows the Company's strategy to focus on its higher margin Croma Locksmiths and Croma Security Systems businesses. Proceeds will be used to support the nationwide roll-out of the Company's retail chain. The Consideration of £6.5m represents approximately 91.8% of the Company's market capitalisation of £7.1m. For the year ended 30 June 2022 Vigilant generated approximately 42% of the Croma Group's EBITDA and for the six months ended 31 December 2022 Vigilant generated approximately 29% of the Croma Group's EBITDA.

Crossword Cybersecurity* 9.25p £8.7m (CCS.L)
The software and services company focused on cyber security and risk, announces that it has been awarded a contract with a FTSE 250 engineering company to provide forward looking Dark Web Threat Intelligence services. The service will be delivered via Crossword's Trillion platform using its market leading credential leak and discussion monitoring services. The solution will be backed up by expert human analysis to deliver the service. The Engineering Company is already a consulting client of Crossword.

FireAngel Safety Technology Group 4.75p £8.6m (FA..L)
A developer and supplier of home safety products announces its final results for the year ended 31 December 2022. Revenue increased 32% to £57.5m (2021: £43.5m), as such adjusted gross profit increased to £13.5m (2021: £10.5m). Loss before tax increased to £6.1m (2021: £3.7m). The Company reported net debt at 31 December 2022 of £4.8m (2021: net cash £0.1m). Trading in the year to date is in line with the Board’s revised expectations. The Company also announces it is proposing to raise up to approximately £6.1m (before expenses) by way of an Open Offer of New Ordinary Shares at an issue price of 5.05p per share. The Issue Price represents a discount of approximately 25.2% to the Closing Price of 6.75p on 5 June 2023.

Gooch & Housego 568p £142.3m (GHH.L)
The specialist manufacturer of optical components and systems, announces its interim results for the six months ended 31 March 2023. Revenue increased 31.7% to £71.3m (H1 2022: £54.1m) reflecting growth in all market segments. Adjusted operating profit increased 32.9% to £5.2m (H1 2022: £3.9m). The orderbook increased to £124.4m (H1 2022: £119.9m) and the Company holds cash from operations of £6.0m (H1 2022: £3.2m). Full year expectations are unchanged and the long-term outlook for the Company is enhanced by the clarity of focus from the Group's new strategy.

Oxford Metrics 105.5p £137.4m (OMG.L)
The smart sensing software company, servicing life sciences, entertainment and engineering markets, announces unaudited interim results for the six months ended 31 March 2023. Revenue increased 70% to £21.3m (H1 FY22: £12.6m), and profit before tax increased 1263% to £4.1m (H1 FY22: £0.3m). The Company holds net cash of £63.6m and has an orderbook of £22.0m an increase of 68% (H1 FY22: £13.1m). The Board believes that Oxford Metrics is well placed to deliver full year results ahead of current market expectations.

Sareum Holdings* 135p £91.9m (SAR.L)
A clinical-stage biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, announces the successful dosing of the first subjects in a Phase 1a clinical trial for its lead programme SDC-1801. The dosing has started at a specialist clinical unit in Melbourne, Australia. SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis, an autoimmune condition affecting the skin. The Phase 1a trial is designed to investigate the safety, tolerability, pharmacokinetics and pharmacodynamics of an oral formulation of SDC-1801 in healthy subjects. Full safety data from this trial are expected to be available during the first half of 2024 and, provided satisfactory results are obtained, a Phase 1b clinical study is expected to commence as soon as possible thereafter in psoriasis patients.

Smart Metering Systems 791.5p £1055.8m (SMS.L)
An installer and manager of smart meters, energy data, grid-scale battery storage and other carbon reduction (CaRe) assets, announces the appointment of Mike Winkel as a Non-Executive Director of the Group with immediate effect. Mike is a former COO of E.ON SE and CEO of its Renewables business and has over 25 years of extensive experience in the global power and gas sector.

Zephyr Energy 3.45p £55.1m (ZPHR.L)
The Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, announces it is raising £3.15m (before expenses) via a placing and subscription of new ordinary shares at an issue price of 3.5p. The Issue Price is at a c.5% discount to the closing price of 3.7p on 5 June 2023. The net proceeds will be used to fund an estimated US$3.65m of incremental near-term CAPEX at the Company's flagship project in the Paradox Basin, Utah, U.S. This is expected to include a production test on the Company's State 36-2 LNW-CC well, as well as future infrastructure and gas processing costs and for near-term working capital needs.

6 June 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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