Small Cap Feast

8th June 2023

Dish of the day
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Dish Of The Day:

Amicorp FS (UK) (AMIF.L) has joined the Standard Segment of the Main Market.

No leavers today. 

What’s Cooking In The IPO Kitchen?

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 The Company has withdrawn from the AQSE Growth Market and intends to list on 9th June 2023 with the new ticker (REE).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

Directa Plus 70.5p £46.4m (DCTA.L)
The leading producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, announces the launch of a new product, GRAPHITO, in collaboration with Candiani Denim (Candiani), an international textile producer based in Italy. GRAPHITO is an eco-denim textile for the sustainable fashion industry by addressing denim's environmental impact. GRAPHITO comprises of Directa Plus' patented technology, G+® Graphene to enhance antimicrobial and thermal properties and Candiani Denim's bio-based polymer, Kitotex® to replace liquid plastic (PVA) in textile production processes. This will significantly reduce water usage, energy consumption and carbon emissions of up to 75% in the garment's wash lifecycle.

Eneraqua Technologies 150p £49.8m (ETP.L)
The provider of specialist energy and water efficiency solutions, announces that use of its Control Flow HL2024 water-saving technology has unlocked the development of a large commercial site for one of its Local Authority clients. In the UK and Europe, approval of many new homes and commercial developments is being delayed due to concerns on water and nutrient neutrality in the local water catchment area. In the UK the House Builders Federation estimate this issue is currently delaying approval of some 120,000 new homes. Eneraqua is in discussions with a number of local authorities and developers on how it could help them unlock their development sites and support local regeneration.

Fiinu Plc 8p £22.0m (BANK.L)
The fintech group, creator of the Plugin Overdraft®, announces its results for the year ended 31 December 2022. Through the reverse takeover (RTO) of Immediate Acquisition Plc, which was subsequently re-named Fiinu Plc, the group concluded by the re-admission in July of its shares to trading on the AIM market. FY22 revenue was nil. Administrative expenses totalled £8.2m. Net loss was £7.8m. Gross cash balance was £7.0m as at 31 December 2022. The company is now focused on securing £34-42m of capital to support its full unrestricted banking licence in the second half of 2023.

First Class Metals 11.25p £7.8m (FCM.L)
The UK metals exploration company focused on the discovery of economic metal deposits across its extensive Canadian - northwest Ontario, land holding, provides an update on exploration activities. Zigzag Lithium: initial reconnaissance trip with the property completely under the cover of snow returns grades of lithium up to 1.00% and tantalum up to 198 ppm. McKellar REE Diatreme: channel sampling of diatreme verifies historical findings and further evidenced Rare Earth Element (REE) system. Esa: Extensive soil sampling campaign built on the successful 2022 program completed with 539 samples now awaiting assay results. Sunbeam: historic data and core reviews completed alongside extensive prospecting, sampling, and mapping program which includes rediscovery of a 3m wide quartz vein on the Pettigrew Trend. North Hemlo: Exploration at North Hemlo initiated focused on the Dead Otter trend.

Gama Aviation 53.5p £34.2m (GMAA.L)
The business aviation services company announces its audited results for the year ended 31 December 2022. Revenue went up 21% to $285.6m (2021: $235.9m). Adjusted EBITDA increased by 94% to $22.9m (2021: $11.8m). Net debt (including $52.7m of lease obligations) decreased to $66.4m (2021: $104.9m). As at 7 June 2023 cash balances were $12.5m. The Board remains confident that progress to date could be sustained through the coming year but circumspect in the outlook for 2023 given the high inflation, high interest rates and the uncertainties associated with a protracted conflict in Europe.

Idox 67.2p £304.8m (IDOX.L)
The supplier of specialist information management software and solutions to the public and asset intensive sectors, announces its unaudited results for the six months ended 30 April 2023 (H1 FY23). Revenue increased by 8% to £35.8m (H1 FY22: £33.2m). Recurring revenues1 increased by 7% to £21.2m (H1 FY22: £19.8m), accounting for 59% of the total revenue (H1 FY22: 60%). Operating profit increased by 16% to £4.9m (H1 FY22: £4.3m). Net cash at the end of the period of £1.1m (31 October 2022: net debt of £6.7m). Strong recurring revenue and growing orderbook provide good revenue visibility for the remainder of FY23 and into FY24. The business continues to perform well and in line with the Board's expectations.

Midwich Group 457.5p £417.2m (MIDW.L)
The specialist audio visual distributor to the trade market, announces the successful completion of the Placing to raise approximately £50m and Retail Offer to raise approximately £1.25m. The Placing Price of 425 pence per share represents a discount of approximately 5.6% to the closing middle market share price of 450 pence per share on 7 June 2023. In aggregate, the Placing Shares and the Retail Offer Shares represent approx. 13.2% of the existing issued share capital. The cash raised will help to reduce debt, which had risen to £119.4m (including £23.4m of lease liabilities) by the end of 2022. That is before the acquisition of SF Marketing. Further earnings enhancing acquisitions are likely.

PetroTal Corp 39.5p £345.1m (PTAL.L)
As of June 3, 2023, the Indigenous Association for Development and Conservation of Bajo Puinahua (AIDECOBAP) has engaged in carrying out an illegal blockade in the Puinahua Canal against all ships providing services to the Company’s barges for oil transportation and vessels carrying critical camp supplies. This river access disruption coincides with planned production reductions that will allow the Company to tie in previously installed infrastructure and modify production operations that will economically benefit future oil production. The Company's 2023 oil production guidance included this planned downtime and a 5% social downtime contingency to allow for social disruption.

Sabien Technology Group 14.5p £3.1m (SNT.L)
The company focused on a green aggregation strategy, provides a update regarding its M2G business with a focus on CO2 mitigation devices for commercial boilers. In its interim results statement (31 March 2023), Sabien highlighted that M2G had recorded a strong sales performance as a result of higher demand and the roll-out of M2G's Cloud Connect solution. Since mid-May 2023, Sabien has won orders totalling over £118,000 from this expanding customer base and at least £10,000 of these orders will be annually recurring.

Shearwater Group 58.5p £13.9m (SWG.L)
The cybersecurity advisory and managed security services group, announces an update ahead of its results for the year ended 31 March 2023 (FY23). FY23 revenue is expected to be approximately £27.0m, down 25% (FY22: £35.9m) with Adjusted EBITDA at around breakeven (FY22: £4.4m). Net cash position as at 31 March 2023 was £4.0m and the balance sheet will be further strengthened through cash generation in FY24. The improving outlook and growing business pipeline are the firm foundation for the Group to deliver solid, sustainable revenues and profit growth in the years ahead.

8 June 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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