Small Cap Feast

7th November 2023

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What’s Cooking In The IPO Kitchen?

Tekcapital announced intention to spin off and IPO on 2 October: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-November.

Stranger Holdings announced 02 October 2023, a Company formed for the purpose of acquiring a business, project or assets announces a Proposed Acquisition of up to a 70% interest in the Henkries Uranium Deposit and Prospecting Right in the Republic of South Africa. The Company will acquire this indirect ownership via the acquisition of two intermediary holding companies, namely Mayflower Energy Metals Limited and Neo Uranium Africa Proprietary Limited. The Acquisition constitutes a Reverse Takeover under the Listing Rules since, in substance it results in a fundamental change in the business of the issuer. Trading in the Existing Ordinary Shares continues to be suspended. It is anticipated that Re-Admission and trading in the Company's Enlarged Share Capital will occur on or around 7 November 2023.


Breakfast Buffet

CloudCoCo 0.95p £6.7m (CLCO.L)
A UK provider of Managed IT services and communications solutions to private and public sector organisations, provides an update on its trading for the year ended 30 September 2023 (FY23). Revenue expected to be no less than £26.0m (FY22: £24.2m), as a result Group EBITDA expected to be in the region of £1.9m (FY22: £1.6m). The Group signed 42 new logo customers in the year (FY22: 39) and announces 110% increase in MoreCoCo ecommerce sales to £4.2m following growth initiatives. The Group are confident to gain further traction in FY24.

Croma Security Solutions Group 49p £6.7m (CSSG.L)
The innovation and service-focused security solutions provider, reports its trading results for the 12 months to 30 June 2023 (FY23). Group revenue for the Period including Vigilant of £42.83m (FY22: £35.17m), as a result, EBITDA on continuing businesses increased 73% to £0.95m (FY22: £0.55m). The Group holds net cash of £2.14m at period end. Vigilant was sold on 30 June 2023 for a total consideration of £6.5m plus intercompany balances of £1.07m. FY24 has started well with a number of new commercial orders and the ongoing sales of iLOQ.

Futura Medical 30.4p £91.5m (FUM.L)
The pharmaceutical company developing sexual health products, announces that M8 Pharmaceuticals, Inc (M8) has taken up its rights to extend its licensing agreement from Brazil and Mexico to market MED3000 in a further fourteen countries throughout the Central and South American region. Futura's commercial agreement with M8 included an option, which has been exercised, to take up exclusive development and commercialisation rights for MED3000 throughout South and Central America. Futura has received an undisclosed upfront milestone payment from M8 as part of the extended agreement.

Harland & Wolff Group Holdings 14.5p £25.1m (HARL.L)
The UK company focused on strategic infrastructure projects and physical asset lifecycle management, announces that its recently opened Miami based office has been awarded its first contract for circa $1.5m to support TampaShip part of the Edison Chouest Group, in the completion of the construction of a floating dock for the Bollinger shipyard facility in the Gulf of Mexico. Fabrication works have commenced and are expected to be completed within the next three months.

Intelligent Ultrasound 9.75p £31.9m (IUG.L)
The classroom to clinic ultrasound company, focusing on artificial intelligence (AI) software and simulation, announced that it has signed a research agreement with the University of Dundee to initiate the first phase of proof-of-concept work to develop AI-based tools for screening patients with liver disease. The agreement, which is mainly royalty-based, will allow Intelligent Ultrasound to develop ultrasound-based AI tools with the potential to support clinicians in the clinical management of metabolic dysfunction-associated steatotic liver disease and its advanced form, metabolic dysfunction-associated steatohepatitis.

Intercede Group 66p £38.4m (IGP.L)
The cybersecurity software company specialising in digital identities, announced that the Group has secured the following contract and renewal orders: New top-up licence order for MyID CMS from a existing US Defence and Aerospace manufacturer; new technology client for MyID PSM in the Middle East, new government agency for MyID MFA/PSM in the Middle East increasing the Group's reach in this country; upgrade by a large northern European Bank of MyID CMS; and renewal of a sizable support and maintenance contract with a US Federal Agency. With a contract value in excess of $1.4m, underpins the Group's revenue for FY24 and creates contracted revenue backlog for FY25.

Kromek Group 5.4p £32.4m (KMK.L)
A developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces that it has entered into a collaboration agreement with a new partner to develop Cadmium Zinc Telluride (CZT) based detectors for photon counting computed tomography application. The new blue-chip partner is a technology solutions provider to over 100,000 customers globally for a range of applications, including healthcare. As part of the collaboration, Kromek will integrate its CZT sensors with the partner's read-out electronics to ensure optimal computed tomography detection system performance.

MTI Wireless Edge 35p £30.9m (MWE.L)
The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, announces that its Distribution & Professional Consulting Services Division has received various orders for the service and maintenance of surveillance platforms from the Israeli Ministry of Defense. The combined orders are worth approximately US$1m and are to be supplied over the next 14 months.

Naked Wines 29.65p £21.9m (WINE.L)
The online wine retailer announces a trading update. Trading in the US market is weaker than anticipated, as a consequence, guidance for the current year is being reduced: revenue expectations reduced to -12% to -16% (previously -8% to -12%) and adjusted EBIT expectations reduced to £2-6m (previously £8-12m). The Group further reported in September 2023 that FY24 had started slower than expected, with Q1 revenue down 18% versus the prior year. The Group ended H1 with £3m net cash and £45m of additional liquidity available through its credit facility. Nick Devlin will step down from the Board and his role as CEO with immediate effect. Rowan Gormley, founder and Chairman, will take the role of Executive Chairman on an interim basis.

Water Intelligence 345p £59.9m (WATR.L)
A provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water announces a change to its board following on from its annual American Leak Detection (ALD) Franchise Convention. The Group announces that Michael Reisman, Myres S. McDougal Professor of International Law at Yale,is retiring from the board. The Group also announces Phil Meckley, is succeeding Dr. Reisman as a Non-Executive Director. Mr. Meckley brings over twenty years of operating experience in growing ALD locations and has provided significant leadership to the entire franchise system.

7 November 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged

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