Small Cap Feast

9th August 2023

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What’s Cooking In The IPO Kitchen?

Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to reduce maintenance costs, improve reliability and reduce carbon footprint. Admission TBC.

Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market.

Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join the Access Segment of the AQSE Growth Market. Admission delayed.

Breakfast Buffet

CyanConnode 16.1p £43.8m (CYAN.L)
A manufacturer in Narrowband Radio Frequency (RF) Smart Mesh Networks, announces the receipt of an order for 500k Omnimesh Modules from IntelliSmart Infrastructure Private Limited. In addition, the order includes Advanced Metering Infrastructure, Standards-Based Hardware, Services, Omnimesh Head-End Software, and an Annual Maintenance Contract. The order will support a smart metering deployment for a Power Grid Corporation for Madhya Gujarat Vij Company Limited, a utility located in Gujarat, India. This is the third order received under a Strategic Framework Agreement for 3m modules. The supply of Omnimesh Modules for this project is expected to commence during Q3 FY 2024, and the deployment will be completed within 27 months.

Ethernity Networks 1.58p £2.2m (ENET.L)
A supplier of data processing semiconductor technology for networking appliances, provides an update on two contracts previously announced on 12 October 2021, for a wireless backhaul solution, and 16 November 2022, for a broadband wireless access solution. The Contracts have a combined value of $740k however the Company has experienced delays and these delays have included the two Contracts. The Company intends to deliver their prototype hardware during Q4 2023. Once delivery the Company will invoice for the remaining balance, equating to approximately $550k in total.

Futura Medical 52.1p £156.7m (FUM.L)
The pharmaceutical company developing a portfolio of products based on its proprietary, transdermal DermaSys® technology, announces that its distribution partner Labatec Pharma (Labatec) has received regulatory approval for MED3000, a topical, gel-based Erectile Dysfunction treatment, in the Kingdom of Saudi Arabia. Labatec will exclusively launch and commercialise MED3000 under the brand name Eroxon®, with initial launch planned in Q4 2023. Futura continues to grow its network of licencing and distribution partners and to strengthen its position, with regulatory approval.

Hargreaves Services 467.5p £152.2m (HSP.L)
A diversified group delivering services to the industrial and property sectors, announces its results for the year ended 31 May 2023. Revenue increased 18.9% to £211.5m (2022: £177.9m) due to organic growth in services, underlying profit before tax decreased by 10% to £27.3m (2022: 30.4m) and EBITDA increased by 60% to £21.8m (2022: £13.6m). The Company holds cash and cash equivalents of £21.9m (2022: £13.8m) and remains free from bank debt. The outlook for the Group's trading activities for the coming year and beyond is strong with 70% of expected revenue for the year in the Services business already secured and with Hargreaves Land having exchanged unconditional contracts for a large plot at Blindwells which is scheduled to complete in January 2024.

Inspired Energy 91.5p £91.9m (INSE.L)
A technology enabled service provider supporting businesses in their drive to net-zero and controlling energy costs, provides an update on trading for the six-month period ended 30 June 2023. Each of the Group's four divisions are trading well, with Optimisation and ESG delivering strong revenue growth. Optimisation continues to benefit from cross selling and a step up in demand, with clients focusing on the beneficial impacts of energy reduction and delivering net-zero. Group net debt remains in line with management's expectations and the Group is confident of achieving a cash conversion ratio in excess of 80% in FY23. The Board expects to report results in line for the period ended 30 June 2023.

PCI-PAL 51p £33.4m (PCIP.L)
The cloud provider of secure payment solutions for business communications, announces a trading update for the year ended 30 June 2023 (FY2023). The Company reports revenue growth of approximately 25% to £14.9m (2022: £11.9m) and adjusted loss before tax for the year estimated to be approximately £2.3m (2022: £2.9m). New business ACV sales for the year of £4.2m, a 21% increase on FY2022 and the Group finished the year with net cash of £1.2m (2022: £4.9m) having spent £2.0m on the on-going patent case in the year. The Board expects full year results to be in line with expectations and looks to FY2024 in confidence.

Star Energy Group 11.75p £15.1m (STAR.L)
The British energy company continuing the development of geothermal in the UK announces a trading and operations update in advance of the Company’s half-year 2023 results which are scheduled for release on 13 September 2023. Average net production for the 6 months to 30 June 2023 of 2,080 boepd. Guidance remains for full year at c. 2,000 boepd. As at 31 July 2023, cash balances were £2.7m and net debt was £2.7m. The Company identifies an opportunity to use geothermal energy to drive towards net zero and decarbonise the NHS saving emissions between 1.3 -22.7 kt CO2 per year for individual hospital sites as stated in their recently published Government white paper on deep geothermal energy, funded by the Department of Energy Security and Net Zero (DESNZ).

Trinity Exploration & Production 97.5p £37.4m (TRIN.L)
The independent E&P company focused on Trinidad and Tobago, announces the appointment of Dr Jonathan (Jon) Cooper as a Non-Executive Director and Julian Kennedy as an Executive Director of the Company, effective 8 August 2023. Jon Cooper has more than 25 years' experience in mergers, acquisitions, public offerings and financings in banking and the oil and gas industry. He is currently Executive Director and Chief Financial Officer at Longboat Energy plc. Julian has over 30 years' experience across a wide range of roles in, and advising, the oil and gas industry. Most recently, he was Head of Business Development for NEO Energy.

Velocity Composites 42p £15.5m (VEL.L)
The supplier of composite material kits to aerospace and other high-performance manufacturers, announces that it has conditionally raised £1.2m (before expenses) at the Issue Price of 40 pence per New Ordinary Share, and has also conditionally raised £5m (before expenses) EIS/VCT Placing Shares at the Issue Price. The Issue Price represents a 13.0% discount to the closing market price of 46.0 pence per Ordinary Share on 8 August 2023. A Retail Offer to raise up to an additional £0.5m is being made through the REX Retail Offer at the Issue Price. The net proceeds of the fundraise will be used for capital expenditure, engineering, software and business development and working capital for expansion.

Volex 315.5p £570.8m (VLX.L)
The specialist integrated manufacturer of critical power and data transmission products, announces it is a licensed partner of Tesla for the North American Charging Standard (NACS) EV Charging system. Volex is a selected global manufacturer of the authentic NACS coupler and is stocked and ready to immediately supply automotive OEMs and charging infrastructure suppliers.

9 August 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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