GCIHybridan Small Cap Feast: 13/11/2024
* 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:
Delisting from AIM: Armadale Capital Plc, ACP.L
What’s baking in the oven?
ITF announced:***
Potential** Initial Public Offerings:
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 announces 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****
The Group comprises two divisions, Biome Bioplastics and Stanelco RF Technologies and provides a trading update for the quarter ended 30 September 2024. The Board has lowered revenue expectations for Y/E Dec 2024, with a consequential impact on profitability. Both of its divisions are suffering delays. The bioplastics revenues in Q3 are £0.7m, a 49% decline due to continued production and regulatory difficulties which are likely to be resolved in 2025. Revenues in the RF Technologies division for Q3 were £0.1m, a decrease of 59%, but Q4 should improve following the successful completion of the factory acceptance testing of a large project. This has since been shipped to the customer in preparation for installation. Cash at the end of September was unchanged at £0.9m; there is an unsecured loan from a related party of £63k and no bank debt.
The mineral exploration and production Company announces the start of a 6,700-metre resource drilling programme. This is the final major workstream required for the completion of the Definitive Feasibility Study (DFS) for the Orom-Cross graphite project in Uganda. The drilling programme is seeking a significant expansion of the JORC Standard Resource and Reserve, following the recent £1.5m funding at 4p. It will target extensions to the deposits as well as upgrading the overall Resource classification. There will also be a step-out campaign to outline additional resources in a nearby target zone which, if successful, will add an exciting new high-grade deposit. The additional Reserves will allow Blencowe to both increase the scale of production tonnage earlier in the mine life and to extend the life of mine, delivering a substantial impact on project economics and the final DFS results.
The iron casting and machining group primarily focused on the European heavy truck market reports Interims to September 2024. The 19% sales decline to £89.2m is in line with management expectations as there was lower demand from the European heavy truck market which is around 75% of the groups revenue. The PBT was down to £4.1m from £10.2m, while strong balance sheet with cash levels of over £16m allowed a 2% improved interim dividend of 4.21p.
Production efficiencies are expected in H2 and assuming no material further reduction in demand market there should be improvement. In the medium-term, there are opportunities for growth from new parts being quoted for existing heavy-truck customers, greater reach in the US aided by a new warehousing arrangement, the expansion of the customer base at its larger casting facility and from the offshore energy, agriculture and rail markets.
The Artificial Intelligence platform for transport corridor analytics announces two new contracts with new customers. The first contract win is with Australia's largest rail freight operator, Aurizon. The client has 5,100 kms of rail track under management and Cordel will provide automated, AI enhanced, clearance assessments across parts of Aurizon's rail network, including standard Video and LiDAR data (Light Detection and Ranging from a laser) deliverables and access to Cordel's Connect Data Management Platform. The second is a contract with one of the UK's biggest and busiest passenger train operators, Southeastern, who have contracted Cordel to help optimise the accessibility of new trains that they are working to procure. Cordel will deploy its automated LiDAR capture and AI-processing services to provide up-to-date accurate measurements of Station Platforms. The value of these contracts where not reported.
The beauty and well-being brand owner and manufacturer put out a trading update and estimates that its profit before taxation for the Interims to September 2024 (expected in December) will be notably higher than last year.
This is despite a small reduction in revenue. It is a result of maintaining a tight control on costs, whilst aligning the overhead cost base with activity levels. The operating profit is expected to be greater than the full year to March 2024’s operating profit of £1.5m before exceptionals.
Provides an update on exploration operations in the Beetaloo Sub-basin, in Australia. The SS2H well was successfully drilled to a total depth of 20,669 feet in 35 days. The Data from the SS2H well has demonstrated consistent geological rock properties with strong gas indications from across the entire horizontal section and no observed faulting. When preparing to run production casing, a downhole mechanical issue was unable to be remediated, which resulted in plugging the well and it is hoped that the drilling of the well will be completed in the coming days. Falcon Australia has an elected participating interest of 5%. These drilling operations are continuing at Beetaloo and the CEO is looking forward to making further updates in the coming weeks.
The helium exploration and development Company focused on the ‘Montana Helium Fairway’ reports the completion of drilling at the Darwin #1 well at the Rudyard project area in Montana. The total Depth of 5,488ft was reached in 12 days drilling and indicated significant helium gas-shows in multiple horizons, up to 1,312ppm in drilling mud. Targets hit high to prognosis, indicating a larger anticline structure than previously modelled. Helium gas shows measured by mass spectrometer reached a peak of 1,312 ppm, approximately 250 times the concentration found in ambient air. All targets are reported to be higher than anticipated, indicating a larger-than-expected structural closure. Further testing and evaluation are in progress, and it seems a promising period.
The data and intelligence business, announces interim results to September 2024. Revenue of £9.3m is down 6.1% with an adjusted EBITDA 32% lower at £1.2m. The LBT (Loss Before Tax) is £0.2m compared to a £0.5m profit. There has been continuing investment in products, such as the developed and launched an AI-led, marketing data collection platform.
The dip in revenue also reflects the lead time for a return from the investment in strengthening sales and marketing capabilities and the sales pipeline and conversion rate is expected to improve. Operations generated cash and net debt decreased to £2.3m, with total available debt facilities of £3.7m. The strategy will have an impact on profitability in the short-term, but the Company is confident of returning revenue to growth and with the strong operational gearing, expects to report a strong return to profitability.
There is a Trading Update from the innovative technology Company targeting the aquaculture and offshore markets. While there is a reported strong pipeline of new orders, a number of these orders have taken longer to convert and are now not expected to be completed until FY25. As a result, the revenues for the current financial year will be below market forecasts. The Aquaculture division has seen existing customers and new sales prospects defer the decision to place firm orders. The Board is restructuring the business to focus on its profitable operations and prospects. Potential cost savings are being evaluated, including seeking shareholders’ approval to delist from the AQSE Growth Market.
The supplier of flake graphite, which is a critical mineral for global energy transition, reports on its trade finance arrangements. The Middle Eastern Sovereign Fund has provided a trial pre-production trade finance sum of c.$225,000 for 280 tons of certain grades of flake graphite. There are continuing discussions for a larger trade finance arrangement c. $ 2.4m via a similar, upfront pre-production prepayment. As its operations stabilise to full continuity, sales can be made to other customers. There are discussions with other sources of funding.
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