Hybridan Small Cap Feast: 04/11/2024

* 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
 

Delistings on Friday 1 Nov.

I3 Energy Plc (I3E.L) delisted from the AIM market.

Boussard & Gavaudan Holding Limited (BGHL.L) delisted from the Main market.

STM Group Plc (STM.L) delisted on from the AIM market.

What’s baking in the oven?

ITF announced:***

Potential**  Initial Public Offerings:

17th October 2024: Selkirk Group: a newly incorporated company established with the primary objective of listing on the AIM market and acquiring a company or business headquartered in the UK, which the Directors believe is undervalued. The Company is primarily focused on the small and mid-cap market, specifically within the Consumer, Technology and digital media related sectors. Expected first day of trading is now delated to early November 2024 with an expected size of primary offer of £7.5m.

31 October 2024: Winking Studios: the AAA Art Outsourcing and Game Development business listed on the Catalist board of the Singapore Exchange Securities Trading Limited, is pleased to announce its intention to seek Admission to trading on the AIM market in November 2024 (the Dual Listing) to support, amongst other efforts, its expansion into Western markets. The Company has Partnerships with three major game publishing platforms: Sony, Microsoft and Nintendo and significant organic growth over the past four years, doubling headcount to 800+, increasing revenue to US$29.3m and growing Adjusted EBITDA to US$5.3m (FY23).


Banquet Buffet****

 

AFC Energy 9.72p £83.0m (AFC.L)

The provider of hydrogen power and ammonia cracking solutions announces a trading update for the financial year ended 31 October 2024. Revenue of approximately £4.0m (unaudited) recognised for FY24, slightly above market expectations, driven primarily by sales of hydrogen fuelled power generators to Speedy Hire Services (SHS) for lease to customers of Speedy Hire. As at 31 October 2024, the Company held unaudited cash and cash equivalents of £15.4m and unaudited trade receivables less trade payables of £2.5m.

Clean Power Hydrogen 9.75p £26.3m (CPH2.L)

The green hydrogen technology and manufacturing Company that has developed the IP-protected Membrane-Free Electrolyser (MFE) announces that it has entered into a Licence Agreement with Lisheen H2 Energy Park Limited, which trades under the name Hidrigin. In addition to signing the License Agreement, the parties have entered into a Sales Contract for the delivery of a 1MW MFE220 electrolyser unit by CPH2.  The Licence Agreement grants Hidrigin the right to manufacture up to 2GW's of MFE220 units in Ireland to connect with its own Solar PV & Wind Farms across the world for its own use. Under the Sales Contract, Hidrigin will purchase a 1MW MFE220 electrolyser from CPH2 with delivery expected in 2025.

Croma Security Solutions 78p £10.7m (CSSG.L)

The AIM listed innovation and service-focused security solutions provider announces its final results for the twelve months to 30 June 2024.  Group revenue was £8.74m, up 8.9% (FY 23: £8.03m),  EBITDA on continuing operations was £1.06m (FY23: £0.95m) up 12% and strong balance sheet with  cash and cash equivalents of £2.14m (FY23: £2.14m). On 6 July 2024, a further £1.76m was received in relation to the sale of Vigilant and a further £0.45m in September 2024. FY25 trading has started well with good demand from commercial customers and consumers looking to increase their security, underlined by recent events over the summer

DP Poland 11.25p £103.3m (DPP.L)

The operator of Domino's pizza stores and restaurants across Poland and Croatia announces a trading update for the nine months to 30 September 2024. LFL System Sales in Poland grew by 21.8% YTD (end September 2024), with the Delivery channel continuing to increase its share of business, now accounting for two-thirds of System Sales.  Order counts grew strongly and most importantly was the main driver of revenue growth, with Poland LFL System Orders increasing by 17.3% YTD, and Average Weekly Order Count for Poland continuing to expand, to over 800 per store YTD. Since April 2024 DP Poland has experienced upward pressure on food costs, particularly dairy products.  Despite this, the Company has continued to grow orders and market share without sacrificing store level profitability. The Board remains confident in the Group's performance and expects its results to be in line with market expectations for 2024.

DSW Capital 65p £14.3m (DSW.L)

The professional services licence network and owner of the Dow Schofield Watts brand announces that it has completed the significantly earnings-enhancing and transformational acquisition of DR Solicitors Limited (DR Solicitors) for a total consideration of £6.1m. Under the terms of the Acquisition agreement, DSW Capital has paid a total consideration of £6.1m, satisfied by £4.3m in cash and £1.8m of new ordinary shares of £0.0025 each in DSW Capital (Consideration Shares). The parent company of DR Solicitors is DR Services Holdings Limited (DRSH). DRSH has entered into a lock-in agreement with DSW, pursuant to which it will not dispose of any of the Consideration Shares for a period of two years to 1 November 2026. The Acquisition brings a highly scalable, cash generative, and profitable Legal Platform to the Group. The Acquisition is expected to be immediately and significantly earnings-enhancing and it is the Board's intention to maintain the Group's progressive dividend policy.

EnSilica 51.5p £49.7m (ENSI.L)

The chip maker of mixed signal ASICs (Application Specific Integrated Circuits) announces that it has secured a new debt facility to refinance its existing external loan facilities, providing total funding of up to £9m and extending out to November 2029. The Facility has been agreed with Lloyds Bank providing the Company with additional flexibility to underpin ongoing working capital commitments, and ensuring that EnSilica can fully capitalise on its existing new business pipeline. The Facility consists of a three-year £3m repayment term loan facility and a five-year £3m revolving credit facility with an accordion option for an additional £3m subject to credit approval by the lender. The Facility also improves the borrowing costs of the Company. The Facility agreements contain normal market terms and financial covenants.

Feedback 25p £3.3m (FDBK.L)

The Company announced that it is raising approximately £5.2m (before expenses) in conjunction  with a further £1m in a Retail Offer at 20p which represents a discount of around 55%. The  fundraise is conditional, inter alia, upon the completion of the Share Capital Reorganisation and the offer closes 4.30 Tuesday 5th November and Admission is  on Friday  29th November. The  funding will be mainly used to drive growth through the collaboration agreement announced on 19 September 2024 with a large UK primary care partner. The collaboration provides a potential route to rapidly roll out Bleepa, leveraging the existing footprint of the partner to support national engagement. The combined proposition, as a clinical service rather than a technology sale, would provide access to potential large recurrent pots of core funding. The Finals to May 2024, also announced today reports a 15% increase in turnover to £1.15m and a 5% reduction on EBITDA to £2.73m, with cash of £3.88m.  The  CEO commented that with improving NHS prospects, a  viable funding mechanism and a channel partner who can help deliver national scale at pace, plus growing visibility of international opportunity, he believes there has never been a better time to invest in the Company.

Physiomics * 0.65p £1.3m (PYC.L)

The mathematical modelling, data science and biostatistics Company supporting the development of new therapeutics and personalised medicine solutions announces the hiring this week of a new senior member of its team, Dr Mark Davies, as Head of Quantitative Pharmacology and Data Science. Dr Mark Davies brings over 20 years' experience in drug development, both from the perspective of working within major pharmaceutical companies (such as AstraZeneca) as well as from within service businesses supporting biopharma companies worldwide. During this time, his roles have spanned a variety of different disease areas and phases of drug discovery and development. His main areas of experience are within computational biology and data informatics, more recently, he has worked in business development roles for state-funded (Medicines Discovery Catapult) and multiple Contract Research Organisations (service providers) across Europe.

Synectics 270p £48.0m (SNX.L)

The advanced security and surveillance systems announces that it has been awarded further contracts as part of a framework agreement with National Grid. The contracts, which are valued in aggregate at approximately £2.2m, are for the delivery of security improvement works for 12 sites across the UK. Synectics was awarded its first contract under the National Grid framework agreement in October 2022 and will now be deploying its services across a total of 32 sites. The contracts will be delivered by Ocular Integration, the Company's division formerly known as Security, which will be responsible for implementation as well as providing ongoing customer support.

Vianet Group 114p £33.6m (VNET.L)

The international provider of actionable data and business insights through an integrated ecosystem of connected hardware devices, software platforms and smart insights portals, today announces a trading update, and notifies the market that it will release its results for the six months ended 30 September 2024 on 3 December 2024.  The trading update stated that revenue growth increased in H1 2025 to £7.69m, up from £7.19m in H1 2024, the adjusted Operating Profit rose 10.1% to £1.43m (H1 2024: £1.3m) and the Company expects to report a reduced net debt of £1.0m (H1 2024: £2.09m) and cash balances increased to £2.25m (H1 2024: £1.32m).

This document has been provided as a general market commentary and is issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as investment advice; a recommendation; an offer to sell; nor 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. The information has been provided without taking into account the investment objective, financial situation or needs of any particular person. 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.

As market commentary, this document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis. It is not subject to any prohibition on dealing ahead of the dissemination of investment research although Hybridan LLP maintains related internal systems and controls in connection with such dealing.

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.

This document is not intended to be an invitation or inducement to engage in investment activity. 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 categorised by Hybridan LLP as either a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) (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 avoidance of doubt, 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.

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. The information may contain projections or other forward-looking statements regarding future events, targets or expectations. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. 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.

References to specific securities, asset classes and financial markets are for illustrative purposes only. Past performance is no guarantee of future results.  Information and opinions presented have been obtained or derived from sources which Hybridan LLP reasonably believed to be reliable however 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.

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 losses arising in any way from use of all or any part of the information in this document including, for the avoidance of doubt, direct or indirect or consequential loss or damage (including lost profits).

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 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.

Unless otherwise stated, Hybridan LLP owns the intellectual property rights and any other rights in this document. 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.