Small Cap Feast

8th February 2024

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

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

Baron Oil 0.0825p £15.8m (BOIL.L)
The oil and gas exploration and appraisal company focused on assets in SE Asia and the UK announces that further to the Company’s announcements of 24 January 2024 and 1 February 2024, the Company confirms that the Farm-Up Agreement between Baron's wholly owned subsidiary SundaGas Banda Unipessoal, Lda. (SundaGas) and TIMOR GAP Chuditch Unipessoal Lda (TIMOR GAP) in relation to the TL-SO-19-16 Production Sharing Contract (offshore Democratic Republic of Timor-Leste, has completed. As part of the Farm-Up arrangements, TIMOR GAP will make a cash payment to SundaGas of c.US$1m to cover back costs within 30 days.

CMO Group 23.5p £16.9m (CMO.L)
The UK's online-only retailer of building materials, announces the promotion of Callum Tasker to Chief Commercial Officer of CMO and his appointment to the Board with immediate effect. Callum has approaching 20 years' experience in the industry, joining CMO in 2010, shortly after its inception, and has successfully carried out various significant roles within the Company. The Company further announce that Sue Packer, Chief Operating Officer, is retiring at the end of March and will step down from the Board today.

Eco Buildings Group 12p £8.4m (ECOB.L)
A modular housing company, announces that it has raised £827k via a subscription for new ordinary shares. The Subscription will be completed at a price of 12 pence per share (Issue Price), being a 4.3% premium to the closing market price of 11.50 pence per share on 7 February 2024 (the business day prior to the date of this announcement). The proceeds will be used to accelerate production of modular housing and help satisfy the existing EUR114m order book over 3 years. The Company anticipates that the first revenue is to be received in the current quarter (Q1 2024) and ongoing thereafter. In addition the Company will use funds to support growth in new geographic areas.

Golden Metal Resources 14p £12m (GMET.L)
A strategic development and mineral exploration company focused on Nevada, USA announces an update on the 100% owned, flagship, Pilot Mountain project (Pilot Mountain) located within the prolific Walker Lake Mineral Belt in Nevada, USA. Pilot Mountain hosts what the Company believes to be the largest undeveloped tungsten resource in the United States, with a Mineral Resource estimate (MRE) of 12.53Mt at 0.27% WO3 with significant copper-silver-zinc credits, published in 2018. Exploration work undertaken by the Company in 2023 identified five compelling target areas that show potential for significantly greater in-ground resources than currently stated. The Company is now seeking to appoint a garnet specialist to complete a detailed market and project specific analysis.

Hardide 7.5p £4.4m (HDD.L)
The developer and provider of surface coating technology, announces its preliminary annual results for the year ended 30 September 2023. Revenue increased by 10% £5.5m due to strong oil & gas sector demand, new aerospace work increasing in Q4 and successful recovery of cost inflation in selling prices. EBITDA of (0.1)m close to break-even performance delivered (FY22: £0.9m loss) reflecting higher revenues and the loss before tax of £(1.2m) (FY22 (2.3m)). The Board now anticipates FY24 revenue to be broadly in line with FY23 and, given cost mitigations, to be EBITDA positive with trading expected to gather momentum as the year progresses.

Light Science Technology Holdings 2.4p £8.0m (LST.L)
The Company involved in the design, manufacturing, and installation of products and customised solutions spanning various industry sectors, announces that its Contract Electronics Manufacturing (CEM) division, UK Circuits and Electronics Solutions Limited (UKC), has received an order from a new client in the sports entertainment market segment valued at £130k and anticipated for delivery to the customer in April. In addition, UKC has secured orders since the start of the current financial year totalling c.£1.4m in the pest control sector, predominantly due for delivery in Q2 of the current financial year. The forward order book for the CEM division stands at c.£4.1m, and when combined with orders already invoiced it is expected to meet internal sales expectations for the first half of the current year.

One Heritage Group* 14p £5.4m (OHG.L)
The UK-based residential developer focused on the North of England, announces the appointment of Stuart Ormisher as Chief Financial Officer and Executive Director of the Board with immediate effect. Stuart has over 13 years’ experience in real estate, with his most recent position being CFO at Property Alliance Group where he oversaw group reporting and commercial finance, including development transactions and funding options ranging from traditional debt finance to forward funding. The Company announces that following their announcement on the 29 September 2023, Anthony Unsworth, current CFO, will resign as Executive Director and CFO with effect from 16 February 2024.

Seeing Machines 5.12p £212.8m (SEE.L)
The computer vision technology company that designs AI-powered operator monitoring systems provides a trading update for the six months to 31 December 2023 (H1 2024). Underlying Revenue growth for H1 FY2024 of 28% to US$25.6m excluding one-off Magna exclusivity payments, as a result Annualised Recurring Revenues increased by 22% year on year to US$14.5m. The Company holds cash at 31 December 2023 of US$22.2m with cash burn of US$13.9m, receivables and inventory balance of US$31.1m with working capital unwind of $5-6m expected in H2 FY2024. The Company is well positioned to meet FY2024 expectations and cash break even run rate during FY2025.

TruFin 50p £52.9m (TRU.L)
The fintech company delivering social value announces a trading update. Revenue for the 12 months ended 31 December 2023 is expected to be no less than £20.2m (FY221: £15.3m), representing growth of 32%. Adjusted EBITDA loss is expected to be ahead of prior expectations at no more than £(3.0)m, representing an improvement of 47% (FY221: £(5.7)m). The Company announced cash at year of £9m, of which unrestricted cash is no less than £5.5m, and the Group is fully funded to profitability. Oxygen Finance Group Limited grew 2023 revenue by 18% to £6.2m (FY22: £5.3m) and Satago Financial Solutions Limited grew 2023 revenue by 72% to £3.8m (FY22: £2.2m).

XLMedia 6.6p £17.2m (XLM.L)
A digital media company, provides the following trading update ahead of the publication of its results for the twelve months to 31 December 2023 (FY 23). The Group expects FY 23 revenues expected to be c.$50m and FY 23 Adjusted EBITDA of c.$12m; both in line with market expectations. During the Period, the Group saw the return to growth of its premium European assets and also made further progress in replacing legacy technology and implementing further cost reduction measure. The Company will continue to focus on growing its premium European brands and maximising existing opportunities in the US during 2024.

8 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


Our daily digest of news from UK listed Small and Mid caps straight to your Inbox.


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.

© Copyright 2024 - Hybridan | Website by Boxed Up Media
First Visit
bookcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram