Hybridan Small Cap Feast: 02/12/2024

* A corporate client of Hybridan LLP

** Potential means Intention to Float (ITF) has been announced, or it is a rumour

***Arranged by type of listing and date of announcement

****Alphabetically arranged

Share prices and market capitalisations taken from the current price on the day of publication

Dish of the day

 

Admissions:  

None

Delistings:

None

What’s baking in the oven?

Transferring markets:

8 November: Zentra Group plc (ZNT.L)* will delist from the Equity Transition Segment of the Main Market on 11 December and admit to the Access Segment of the AQSE Growth Market on the same day. Zentra Group is a UK-based residential developer, development manager and property manager focused on the North of England and on 22 November completed a series of transactions, after having changed the Company's name from One Heritage Group plc on 17 October.

Reverse Takeover:

18 November 2024: Greatland Gold (GGP.L) has entered into an agreement with certain subsidiaries of Newmont Corporation (NYSE:NEM) to acquire, subject to certain conditions being satisfied, a 70% ownership interest in the Havieron gold-copper project (thus consolidating Greatland's ownership of Havieron to 100%), and 100% ownership of the Telfer gold-copper mine, and other related assets and interests.  The Acquisition constitutes a reverse takeover under Rule 14 of the AIM Rules and accordingly an AIM admission document was published on 10 September 2024. The Acquisition is subject to a number of conditions precedent. Satisfaction of the Acquisition conditions precedent, and following that Acquisition completion and readmission of Greatland's securities to trading on AIM, is targeted in Q4 2024.

Potential**  Initial Public Offerings:

Rumours about December IPO

Canal+: the producer of the Paddington films, confirmed it would separate from Paris-based conglomerate Vivendi and is expected to float in London on the Main Market of the London Stock Exchange on 16 December, according to a newly published prospectus. The demerger is subject to a vote among Vivendi’s shareholders on 9 December and would come alongside the separation of advertising agency Havas and newly-named publishing business Louis Hachette from the group. Canal+ would trade in London using the ticker CAN. It was reported last week that the firm was seeking a valuation of up to Euro8bn (£6.7bn) in its public debut. Canal+ owns StudioCanal, a producer of the Paddington film series. Earlier this year, it agreed to take over South African pay-tv giant MultiChoice to grow its international operations.

“Santa's Wishlist” for 2025 IPOs

Shein: Rumours began again early October and are gathering pace that fast-fashion company Shein plans to list on the Main Market of the London Stock Exchange in early 2025. According to media reports, the IPO could value the company at £50.3bn (US$62.5bn), pending regulatory approval. Shein is collaborating with US investment banks Goldman Sachs, JP Morgan, and Morgan Stanley for the listing according to the press. Company leaders, including founder Chris Xu and executive chairman Donald Tang, are apparently engaging with UK investors to gauge interest. Shein initially considered a US listing but allegedly encountered issues with the SEC’s filing requirements according to newspaper coverage.
 

Banquet Buffet****


Begbies Traynor Group 89.6p £141.3m (BEG.L)

The professional services consultancy, is expanding its business recovery team in Brighton with the acquisition of White Maund Insolvency Practitioners. The transaction will increase the group's existing 20 strong team in Brighton through the addition of four experienced team members, including Chris Latos and Tom D'Arcy who will join the practice as partners.


Capital Metals 2.1p £7.2m (CMET.L)

The mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka provides the following Project update. Stage 1 capex reduced by approximately one third to $20.9m. Reduction through process rationalisation, with further optimisation expected. 125,000tpa high grade (>95%) stage 1 HMC production with upside following drilling.  Funding discussions ongoing with offtakers, vendor-financiers and potential local Sri Lankan partners to fund stage 1 Project capex, with subsequent expansion from operational cashflow.


Haydale Graphene Industries 0.125p £4.7m (HAYD.L)

The global advanced materials group announces its full year results for the year ended 30 June 2024.  Revenue at £4.8m(FY23: £4.30m) up by 12% on prior year underpinned predominantly by a 75% growth in UK revenues. Adjusted administrative expenses increased marginally by 1.4% to £6.35m (FY23: £6.26m). Adjusted operating loss improved slightly by £0.33m to £3.16m (FY23: £3.49m).  £3.1m fundraising completed post period end.


Induction Healthcare Group 9p £8.4m (INHC.L)

The Company that delivers a suite of software solutions that transforms care delivery and the patient journey through hospital announces that its video platform, Attend Anywhere, has been selected as the national clinical video solution for the Republic of Ireland. This contract with the Republic of Ireland's Health Service Executive (HSE), through the Company's partnership with Involve Visual Collaboration Limited, will see Attend Anywhere rolled out nationally across the health system from 1 January 2025, with an initial focus on the acute sector. The contract is for 2 years, with an option to extend to a 3rd year, and procures a minimum of 1,500 licences generating at least £0.3m in ARR.


Inspired Energy 41.5p £43.7m (INSE.L)

The technology-enabled service provider delivering solutions to enable businesses to transition to net-zero and manage their response to climate change, provides an update on trading for the year ending 31 December 2024. FY24 adjusted EBITDA revised down to c.£23m due to timing of optimisation projects commencement. The Board has increased confidence in FY25 as project revenue moves into FY25.


Mothercare 4.4p £24.8m (MTC.L)

The international brand and franchise operator, that connects with the parents of newborn babies and children across multiple product categories, today announces unaudited half year results for the 26-week period to 28 September 2024. Worldwide retail sales by franchise partners of £121.2m (2023: £137.2m), a decrease of 12% on last year (9% down at constant currency), with the decline largely resulting from the unchanged conditions in  their Middle Eastern markets. Adjusted EBITDA of £1.7m (H1 FY24: £3.6m) decreased by 53%. Net debt increased to £17.1m (£15.8m at 23 September 2023). Following the Joint venture deal and refinancing announced on 17 October 2024, the term loan of £19.9m included in the net debt figure, was reduced to £8.0m.


SRT Marine Systems 41p £91.3m (SRT.L)

The provider of maritime surveillance, monitoring and management systems, announces its results for the 15-month financial period ending 30 June 2024. Revenues of £14.8m and a loss for the period. The company reported £5.7m investment in new product and technology and £320m of system contracts. New system contract prospects pipeline of £1.2bn.


Tekmar Group 7.25p £10.0m (TGP.L)

The provider of technology and services for the global offshore energy market issued a trading and strategy update for the Y/E September 2024. On an 11% reduction in turnover to £32m, the adjusted EBITDA jumped to £1.8m from £0.6m, as gross margins increased by 7% to 30%.  This improvement in EBITDA and margins reflects a change in the scale and quality of revenue helped by operational leverage. The net debt at Y/E 24 was £1.6m, with gross cash of £4.6m and an unchanged order book of £16m.

Thor Explorations 17.25p £112.3m (THX.L)undefined
The West African-focussed minerals exploration and mining company, announced that it is currently producing gold from its wholly owned Segilola Gold Mine in Nigeria and is advancing the Douta Gold Project in Senegal towards development. Thor  announces further positive results from the initial proof-of-concept drilling programme that targets the down-plunge potential beneath the current Segilola open pit extensions. Previously reported results include 3 metres (m) grading 11.24 grammes of gold per tonne (g/tAu)  from 294m in drillhole SNMDD011 and 1.5m grading 3.22g/tAu from 269m in drillhole SNMDD012. The latest batch of results include 3.5m grading 4.10g/tAu in drillhole SNMD016 and 2.4m grading 3.46g/tAu in drillhole SNMD014.
 

Watkin Jones 22p £56.5m (WJG.L)

The developer and manager of residential properties for rent announces it has agreed to develop and deliver 295 new homes in a development partnership with Torus, the largest affordable housing provider in the North West of England, partly funded by Homes England. The scheme is part of the Moss Nook development by Harworth Group, a large complex former industrial site in St Helens. It will deliver much-needed affordable tenures and sees the brownfield site regenerated as part of the wider masterplan, with initial phases already under construction by third parties. Over the course of the development, the transaction is expected to generate revenue of approximately £48m for Watkin Jones, is in line with the Group's stated margin targets, and has the potential to benefit from further value generated by the scheme in the future. The build programme is anticipated to take approximately 40 months to complete.

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