Hybridan Small Cap Feast: 26/11/2024
* 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:
Caledonian Trust (CNN.L) has delisted from AIM.
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****
The mineral exploration and development Company with gold project interests in Africa and Europe provided an update on new exploration being undertaken across the 100% held Dokwe Gold Project in Zimbabwe, focusing on areas for which resources have not yet been defined. Several opportunities have been identified to date. Soil sampling and pXRF analysis at Dokwe South have led to the discovery of a quartz vein breccia. A preliminary rock-chip sampling programme of 22 samples returned seven samples showing >10.0g/t silver, peaking at 35.2g/t silver.
The distributor and provider of specialist products and services to the UK construction industry today announces its unaudited interim results for the six months ended 30 September 2024. Revenue was up 1.9% to £330.9m, Adjusted EBITDA up 9% to £27.9m and net debt of £56.3m. Profitability is expected to be first half weighted due to phasing of project work in the Contracting division, and the Board is confident in achieving market expectations for the full year.
The locator of subsurface resources announced from the Paris H-NAT 2024 natural hydrogen conference that it has won two contracts with Kingfisher Energy Corporation, the private international exploration company, to locate natural hydrogen and helium accumulations in Canada. Initially focused on North America, Kingfisher has narrowed its search over the last year to a previously overlooked exploration fairway in Canada with significant hydrogen and helium potential.
The explorer and developer of gold, silver and copper targets in the Walker Lane belt of Nevada, USA, announces a placing to raise gross proceeds before expenses of £300,000 at a price of 0.0165 pence. The Company also intends to offer its existing shareholders a Retail Offer of new Ordinary Shares at the same Issue Price as the Placing. The use of proceeds will be to complete the commissioning process mill for pilot production, drilling, soil sample analysis and general corporate purposes.
The designer, innovator and manufacturer across various celebration and creative categories announces its unaudited results for the six months ended 30 September 2024. Revenue of $393.1m (HY2024 $444.1m), Profit before tax of $13.3m (HY2024 $34.8m) and net cash at the period end of $7.4m. Group revenue decline was mainly impacted by a competitive US retail environment experiencing subdued consumer sentiment. The challenging market conditions and retail trends experienced in the period are expected to continue in H2.
The Company focused on technologies in dermatology and oncology provides an update in respect of the launch of its premium skin care range Skin + Cell. The Company advises that it has received allegations from a third party concerning potential patent infringement in relation to the formulation of the Skin + Cell range of products. The Company considers the allegations to be unsupported and without merit. The Company is currently in communication with the third party in order to resolve this matter expediently. No formal proceedings have yet been issued, but the Company is prepared to issue related proceedings in the event that a resolution cannot be achieved swiftly.
The specialist property services group that delivers compliance and sustainability solutions announces its unaudited Interim Results for the six months ended 30 September 2024. Revenue reduced by 3% to £29.6m (H1 2024: £30.3m), due to a significant deferral to H2 of a contract with the London Borough of Hackney. The operating profit increased by 10% to £3m (H1 2024: £2.7m) and there was a net debt position of £0.9m (H1 2024, net cash: £1.0m). Three-year visible revenues increased to £175.2m (H1 2024: £157.0m) an increase of 12% year on year and an increase of £12.6m (8%) since the year end.
The independent energy group focused on growth through gas, oil and renewable energy projects announced its preliminary results for the year ended 30 June 2024. Profit after tax for the period of £4.9m (2023: £42.3m loss) was driven by increased operational output across the portfolio and a material reduction in tax liabilities.
Revenue for the period of £5.7m (2023: £14.8m) fell from the prior year due to lower average realised gas prices. The Group maintains cash reserves of £9.5m providing appropriate financial flexibility to pursue further investment opportunities.
The supplier of innovative energy solutions for a cleaner planet has announced the signature of a Collaboration and Operational Trial Agreement with MSC Shipmanagement Ltd and Cargill NV, paving the way for the long-awaited vessel trials on board the MSC Leandra. Upon successful conclusion of the Trials, MSC, Cargill and Quadrise will negotiate and enter into a definitive long-term Commercial Agreement.
The women's fashion brand, creating quality, trend-led products for women of all ages, announced its financial results for the six months ended 30 September 2024 and an update on current trading. Revenue of £16.2m (H1 FY24: £22.2m) was reported as the Group continued to transition away from price promotional activity outside the major scheduled sale events. There was a Gross margin of 62.2%, versus 55.4% in the previous year, reflecting margin enhancement prioritisation. Net cash of £7.0m as at 30 Sept 2024 (£8.3m at 31 March 2024) was announced. Trading in the second half of the financial year has been in line with full year market expectations.
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.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.