Hybridan Small Cap Feast: 20/05/2024

* A corporate client of Hybridan LLP

** Arranged by type of listing and date of announcement

*** Alphabetically arranged

**** Potential means Intention to Float (ITF) has been announced

Dish of the day

Admissions:   

Delistings: 

What’s baking in the oven? **

 Potential****  Initial Public Offerings:

7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to trading on the Aquis Stock Exchange Growth Market. The Company reports it is revenue generating, profitable in FY23, with £1.9m cash in the bank as at 31st March 2024.  The Company's application to the AQSE Growth Market is not conditional on it raising funds.  The Company is seeking to raise up to £1m to support organic growth and acquisition. Expected AQSE Admission date is 29 May 2024.

15th May: Raspberry Pi announces that it is considering an IPO onto the Premium listing segment of the Main Market. Raspberry Pi is a designer and developer of high-performance, low-cost single board computers and compute modules for industrial IoT customers and embedded uses, as well as for enthusiasts and educators, in markets worldwide. The Group's revenue was $140.6m, $187.9m and $265.8m and gross profit was $41.9m, $42.3m and $66.0m in the years ended 31 December 2021, 2022, and 2023, respectively.

16th May: Media reports that Advanced Oxygen Therapy Inc (AOTI) is drawing up plans to raise roughly £39.5m from an initial public offering on the AIM market. If successful, the flotation is likely to value AOTI at around £160m, the sources added. AOTI indicates that its wound care technology reduces the need for amputations in patients by more than two-thirds.

Reverse Takeovers:

13th May: Amur Minerals Corporation Follow | AMC announced that the Company has executed a sale and purchase agreement to conditionally acquire the entire issued and to be issued share capital of Extruded Pharmaceuticals, a UK-based drug delivery technology Company focused on the local delivery of chemotherapy drugs, for an aggregate consideration of £5.5m. The reverse takeover is awaiting the approval of Shareholders at a General Meeting on 29 May. Expected first day of trading on AIM is 31 May 2024.

Change of Market:

Dual Listing:

 Banquet Buffet***

Conroy Gold & Natural Resources 9.75p £4.7m (CGNR.L) Follow | CGNR

The gold exploration and development Company focused on Ireland and Finland announces the appointments of Marian Moroney as a Non-Executive Director and Cathal Jones as Finance Director of the Company, both with immediate effect. Marian has over 30 years’ experience in exploration, mining, strategic planning, governance, identifying new business opportunities, joint venture management and oversight, and mergers and acquisitions. Cathal Jones qualified as a chartered accountant with PwC in 1999 and worked in accountancy practice for over 15 years.  He moved to Deloitte in 2002 where he was a senior manager and Director in the Corporate Finance department, acting in lead advisory roles primarily in the natural resources and renewable energy sectors assisting clients with project finance, capital raising, M&A and overall strategic direction.

Cora Gold 2.1p £9.5m (CORA.L) Follow | CORA

The West African focused gold Company announces its final audited results for the year ended 31 December 2023. Cash and cash equivalents increased to $16.9m (2022: $552k). In March 2023 Cora closed a fundraising for aggregate investments of circa $20m comprising inter alia of $3.93m of equity and $15.0m of convertible loan notes. In September 2023 the maturity date of the CLN was extended to 12 March 2024 and certain holders of CLNs totalling $0.625m elected for early repayment along with a 5% premium thereon. Operationally, Cora remains focused on transitioning its Sanankoro Gold Project into a producing mine.

CT Automotive Group 67.5p £49.7m (CTA.L) Follow | CTA

The designer, developer and supplier of interior components to the global automotive industry announces its results for the year ended 31 December 2023. Revenue increased to $143.om (2022: $124.3m), profit before tax was $5.9m (2022: loss $18.8m) and cash and cash equivalents increased to $9.4m (2022: $4.8m). Trading in 2024 has been positive and in line with market expectations, with good customer demand and good visibility over both booked production and tooling revenues extending into the year end and beyond.

Haydale Graphene Industries 0.41p £7.4m (HAYD.L) Follow | HAYD

The global advanced materials Company announced a trading update for the year ending 30 June 2024. The Company anticipates announcing revenues for the Year of £4.7m, behind current market expectations of £5.8m, but still showing growth on the prior year performance of £4.3m. Notwithstanding the reduction in turnover, adjusted EBITDA is expected to only be marginally behind market expectations, at a £3.15m loss. As reported in the half year interims, the building blocks to take the US silicon carbide business up the value chain and into tooling manufacture and sales has largely been completed, however orders at volume are taking longer than anticipated to crystallise.

Knights Group Holdings 145.75p £125.1m (KGH.L) Follow | KGH

The legal and professional services business provides a trading update for the year ended 30 April 2024. The Group anticipates an increase of 6% in full year revenue of c.£150.0m (FY23: £142.1m), with underlying profit before tax expected to be at least £25.0m, a 16% increase (FY23: £21.6m), within the range of market expectations. The net debt as at 30 April 2024 is expected to be c.£35.2m, (FY23: £29.2m) after over £11m cash paid in relation to acquisitions, including £2.5m in relation to the Convex Corporate Finance Limited joint venture.  In the first half of the financial year, the Group strengthened its presence in the North of England, with acquisitions in Newcastle and Carlisle, both of which are integrating and performing well. 

Likewise Group 17p £41.7m (LIKE.L) Follow | LIKE

The fast growing UK floor coverings distributor announces its audited Final Results for the year ended 31 December 2023. Revenue increased 12.9% £139.5m (2022: £123.6m), EBITDA increased to £7.9m (2022: £6.6m) and cash and cash equivalents decreased to £5.7m (2022: £5.9m). With a continued focus on investment in sales resource and point of sale combined with the additional capacity in the logistics infrastructure, the Board is confident of achieving its ambitions in the coming years.

Metals One 1.13p £2.4m (MET1.L) Follow | MET1

The Company which is advancing strategic metals projects in Finland and Norway announces it has raised gross proceeds of £895k through a placing and subscription at a price of 1p per share to support the development of the Finland - Black Schist Ni-Zn-Cu-Co Project. The proceeds from the Placing will allow for the termination of the farm-in agreement with Gunsynd PLC and provide Metals One with the option to regain 100% ownership of its cornerstone Black Schist Project by funding its own work programme and retaining greater ownership, as well as providing additional working capital.

Microlise Group 149.5p £173.3m (SAAS.L) Follow | SAAS

A provider of SaaS based transport technology solutions to fleet operators announces the signing of contracts with GSF Car Parts and Foodstuffs South Island with a combined contract value of over £2m. Microlise will provide GSF's fleet of vans with its ePOD (Proof of Delivery) and Journey Management software solutions. Microlise's solutions will enable GSF to remove paper-based processes from its operations and grow its enterprise accounts. Microlise has signed a five-year contract with New Zealand based FSSI, which is the largest grocery retailer in the South Island of New Zealand with over two hundred stores across multiple brands as well as providing online grocery services. The contract significantly increases Microlise's share of the grocery freight market in New Zealand.

SDI Group 72.5p £75.8m (SDI.L)

The Group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications provides a trading update for the year ended 30 April 2024. The Group expect revenues to be in line with current market expectations at approximately £65.9m (FY23: £67.6m). In addition to the acquired business Peak Sensors (November 2023) there was a full year's contribution from both LTE Scientific (acquired July 2022) and Fraser Anti-Static Techniques (acquired October 2022). Adjusted operating profit is expected to be in the region of £9.6m (FY23: £12.8m) with adjusted profit before tax approximately £8.0m (FY23: £11.8m), both in line with current market expectations.

Union Jack Oil 22.5p £24.0m (UJO.L) Follow | UJO

A focused onshore hydrocarbon production, development, exploration and investment Company announces its audited results for the year ended 31 December 2023. Revenue decreased to £5.07m (2022: £8.51m), net profit decreased to £859k (2022: £3.61k) and cash and cash equivalents decreased to £5.2m (2022: 7.2m). The Board is confident that the significant increase in drilling, appraisal and development activity now planned in the pursuit of growth from its balanced UK and USA portfolios has the potential for significant value creation for shareholders.

Status of this Note and Disclaimer

This document has been issued to you 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 such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own 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, they have not been independently verified and are not guaranteed 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, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.

Any and all opinions expressed are current opinions as of the date appearing on 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, directors, 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 is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU ("MIFID II Directive"); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II       Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority's Conduct of Business Sourcebook).

This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document 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.

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.

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.