Small Cap Feast

9th July 2024

Dish of the day
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Dish Of The Day:



Whats baking in the oven?

Potential**** Initial Public Offerings:

ITF announced:

8th July 2024: Rome Resources: The Canada-based early-stage resource exploration Company has announced its intention to IPO on AIM in order to continue to make financial progress on its “Bisie North Tin Project”. The Company’s first day of trading on AIM is expected to be 26th July 2024. The Primary Offer expected size is approximately £4.0m.

24th June 2024: Rosebank Industries: The Company aims to repeat the successful 'Buy, Improve, Sell' business model which the Rosebank Co-Founders implemented during their time at Melrose. Rosebank proposes to acquire quality industrial or manufacturing businesses whose performance may be improved. The Company’s first day of trading on AIM is expected to be 11th July 2024. The primary offer expected size is approximately £50m.

Media speculation: (We remove rumours after 10 days of being on the menu)

Reverse Takeovers:

Change of Market:

Dual Listing :

Banquet Buffet

Abingdon Health 10.25p £12.67m (ABDX.L)

AIM listed Medical Services Company put out a trading update this morning for the 12-month period to June 2024. It reported strong commercial progress with revenues likely to be around 52% higher at £6.1m, including a recent small strategic £0.7m acquisition of a regulatory consultancy company. Its products division made progress with the launch of three Boots own-label tests for Vitamin D, Iron (Ferritin) and a Pregnancy saliva test. It sells Simply Test, which is a range of self-test products and sold on-line and through distribution partners. The first ever saliva pregnancy test was launched last year in 400 Superdrug stores, Tesco stores and online with Amazon and its own website. The larger division is its Contract Development and Manufacturing Organisation which makes lateral flow tests for third party customers across a range of sectors with revenues up 51% to £5.5m. The interim operating loss was 50% lower at £1.2m than the prior period and further cost savings are anticipated to drive a continued improvement in profit performance and cashflows. A reduced H2 cash burn leaves around £1.4m of net cash at the period end and the Company turned cashflow positive in Q4.

Cora Gold Limited 1.70p £7.23m (CORA.L)

The West African focused mining Company that is advancing proven gold deposits towards production confirm large scale gold mineralisation potential at Madina Foulbé in East Senegal. According to drill results, 6 out of 10 targets drilled (28 out of the 4o holes) were successful at intersecting mineralisation over broad widths, the most notable highlights being 10m@4.41g/t gold  from 41m in hole MFC0013 and 16m@0.97g/t silver from 38m in hole MFC0014 both at Target 1. Bert Monro, Chief Executive Officer of Cora, commented that they are pleased with the results received from what was a first pass reconnaissance programme and it gives them good confidence that with further exploration they can define resources in the future.

Finseta 37.50p £20.38m (FIN.L)

The transaction processing service Company that specialises in foreign exchange and payments solutions offering multi-currency accounts to businesses and individuals through its proprietary technology platform has provided an unaudited trading update for the past six months ended 30 June 2024. It sustained strong trading progress with expected revenues increasing by 42% to £5.1m from last year driven by growth in active customers (9% increase to 952). On a similar note, the Company expects to report an improved gross margin at 65% and cash flow generated from operations was £0.7m, increasing cash and cash equivalents to £2.8m accordingly on 30 June 2024. According to James Hickman, CEO of Finseta, assuming the trading momentum is sustained, Finseta is on track to deliver significant growth for FY 2024 in line with the Board’s expectations.

Hargreaves Services 550.00p £179.78m (HSP.L)

The diversified industrial group focused on delivering goods and services to the environmental, industrial and property sectors has launched its Net Zero transition Strategy, outlining ambitious goals to deliver a Net Zero carbon footprint by 2050. Specific targets to achieve net zero emissions include all corporate activities by 2030, cars and vans by 2035 and significantly maintenance construction and infrastructure by 2050.

Kinovo 66.50p £41.53m (KINO.L)

The specialist property services Group that delivers compliance and sustainability solutions has announced its audited results for the year ended 31 March 2024. The continued execution of the growth strategy focusing on their three pillars of Regulation, Regeneration and Renewables delivered a year of financial success, where overall revenue increased by 2% to £64.1m and specifically, regulation grew by 9% to £38.5m, whilst Regeneration increased by 10% to £19.3m. Adjusted operating profit also rose by 22% to £6.5m and the Company is confident of delivering another strong performance in the year ahead in line with board expectations.

Naked Wines 62.70p £45.18m (WINE.L)

The specialty wine retailer has announced both the completion of a new $60m credit facility and a new CFO succession plan. Significantly, the facility (with PNC Bank, in the US) enables additional liquidity availability which will lead to an expected $25-30m increase in unconstrained liquidity based on current inventory levels whilst the Company also anticipates having over $40m of available liquidity on the facility basis at the point of completion. Furthermore, it has been stated that James Crawford has informed the Board of his intention to step down as Chief Financial Officer and as a Director of the Company in the autumn of 2024. The Company has a well-advanced transition plan with the permanent recruitment process already underway and looks forward to continuing to provide wine products that deliver a differentiated value to its customers.

Synectics 186.50p £32.92m (SNX.L)

AIM listed leader in advanced security and surveillance systems publishes its unaudited interim results for the six months ended 31 May 2024. H1 2024 revenue increased by 20% to £26.3m driven by the fact that core specialist markets have continued to show momentum and underlying operating profit rose 183% to £2.2m. Continued investment into technology has paid off as a strategy according to the Company and the net cash at 31 May 2024 was £6.4m with no bank debt.

TPXIMPACT Holdings 44.50p £40.09m (TPX.L)

AIM listed technology company specialising in software and computer services announces a strong performance in line with the trading update made on 30 May 2024. The business is being increasingly recognised as a leading alternative digital transformation provider to the UK public services sector and has recorded a 21% increase in revenue from continuing operations up to £84.3m and new business reached a record high with £139m won in the year. The Company also completed the sale of non-core, international businesses Questers and TPXimpact Norway, generating gross cash proceeds of £7.5m, whilst net debt has reached the lowest level in over 3 years at £7.1m on 31st March 2024.  Bjorn Conway, Chief Executive Officer, is delighted by the rapid progress in the first year of a three-year plan and aims to achieve their unchanged FY26 targets of 10-15% revenue growth.

Velocity Composites 38.00p £20.32m (VEL.L)

The supplier of composite material kits to reduce operational costs for aerospace publishes its unaudited results for the six months ended 30 April 2024.  It has demonstrated commercial progress with revenues increasing by 53.9% to £10.7m driven by UK sales rising by 4%. Liquidity position is also stronger since April last year with net cash of £0.6m, much improved from the net debt of £1.7m in H1 FY23. The Board is confident that it will meet market expectations for the full year and maintain trading momentum.

Water Intelligence 432.50p £73.94m (WATR.L)

A multinational provider of minimally invasive leak detection and remediation solutions for water is pleased to announce the strategic acquisition of Feakle Gas and Plumbing Limited. The transaction is structured as a purchase of 100% of the issued share capital with a purchase price of Euro 2.32m in cash. As a result of the investment, the Group is now better positioned to expand its operations in the EU and capitalise on the significant market opportunity.


9 July 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


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