Hybridan Small Cap Feast: 27/11/2023

*A corporate client of Hybridan LLP
** Arranged by most recent first
*** Alphabetically arranged

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What’s cooking in the IPO kitchen?** 

23 November — Substrate Artificial Intelligence ITF: An artificial intelligence Company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health announces its Admission to the Aquis Growth Market. Expected AQSE Admission date is on or around the 7 December 2023.

15 November —Afentra Plc ITF: Formerly Sterling Energy plc, and launched in 2021 to support the African energy transition as a independent oil and gas company announces its Admission to AIM pursuant to the Sonangol Acquisition which constitutes a reverse takeover and therefore admission is being sought as a result of such reverse take-over. The Company will not be raising new capital as part of its Admission. Anticipated market capitalisation on Admission will be c.£65m. Expected AIM Admission date is expected mid-December.

9 November: Chapel Down Group ITF:  England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing a secondary offering as part of its Admission. Anticipated market capitalisation on Admission will be c.£75m. Expected AIM Admission date is 7 December 2023.

2 October: Tekcapital announced intention to spin off and IPO: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-December.

Banquet Buffet*** 

1Spatial 48p £53.2m (SPA.L)

The global leader in Location Master Data Management (LMDM) software and solutions, notes that the UK Government's recent announcement that the National Underground Asset Register (NUAR) is now available across England, Wales and Northern Ireland, ahead of becoming fully operational by 2025. NUAR is a digital map of underground pipes and cables expected to provide £5bn of economic growth to England, Wales and Northern Ireland through increased efficiencies in construction and development.

Celebrus Technologies 184p £73.2m (CLBS.L)

The data solutions provider announces its results for the six months to 30 September 2023 (H1 FY24). Revenue was £13.0m, up 60% year-on-year  (H1 FY23: £8.1m). Adjusted profit before tax was £0.2m (H1 FY23: loss of £1.3m. Cash position was £14.7m (H1 FY23: £26.2m: FY23: £17.1m) with no debt. Solid progress in the first half and the high visibility of opportunities expected to close in the second half underpin the Board's confidence in achieving full year market expectations.

Concurrent Technologies  74p  £63.4m (CNC.L)

The specialist in the design and manufacture of high-end embedded computer systems and boards for critical applications, announces a trading update for the year ended 31 December 2023 (FY23). The Board expects to deliver revenue for FY23 ahead of market expectations, prior to the contribution of Phillips Aerospace which was acquired in September 2023. Revenue for H2 FY23 is expected to be substantially higher than any prior half-year in the Company's history, driven by the strength of order intake over the preceding 24 months. The Board is confident in the delivery of material revenue growth in FY24 and beyond.

CPP Group 144p £12.7m (CPP.L)

The provider of real-time assistance products and resolution services, has entered into an agreement with the founders of Globiva Services Private Ltd (Globiva) for the disposal of the Group's majority interest in Globiva for an aggregate consideration of approximately £5.1m. The Group holds a 51% majority interest in Globiva, a Business Processes Management company incorporated in India, with the other 49% of the shares beneficially owned by the three founders of Globiva, Navneet Gupta, Vikram Singh Nathawat, and Ashish Goyal.

Frontier Developments 157.7p £62.2m (FDEV.L)

The developer and publisher of videogames based in Cambridge, UK, provides a business update. Following the lower than expected sales performance of Realms of Ruin, the Board no longer believes that the current market expectation for FY24 revenue of around £108m is likely to be achieved. Updated guidance for FY24 revenue is  in the range of £80-95m. Despite the reduction in revenue guidance, the Board believes that the current market expectation for an Adjusted EBITDA loss of around £9m remains achievable towards the upper-end of revenue guidance.

Fulcrum Metals 15.75p  £7.9m (FMET.L)

The company focused on mineral exploration and development in Canada, announces an update on its Saskatchewan exploration assets. Through a combination of staking 29,362 hectares and acquiring an option over a further 11,481 hectares, the Company has increased its Saskatchewan uranium footprint by a potential 221%. The option agreement totals 11,481 hectares and has a close date of 30 June 2024. The Company has paid CA$5,000 in cash immediately, with CA$60,000 payable in either cash or equity should the option agreement be exercised. The cost of the staking totalled CDN$17,889 with these properties having no work requirements until October 2025, whilst the optioned properties have work requirements of CDN$57,073 through to the end of 2024.

Epwin Group 71p £102.9m (EPWN.L)

The manufacturer of energy efficient and low maintenance building products for the Repair, Maintenance and Improvement (RMI), social housing and new build markets in the UK, announces a trading update. Trading in the second half of the year has been resilient and the Board remains confident of achieving FY23 underlying operating profit ahead of the prior year and in line with market expectations (company compiled analyst consensus of £24m). In addition, the Group's strong balance sheet and cash generation provides the opportunity to take advantage of current market conditions to repurchase shares at attractive levels. The Company commences today a share buyback programme of up to 3 million ordinary shares. It is currently envisaged that the buyback will end no later than 30 April 2024.

MediaZest* 0.0425p £0.6m (MDZ.L)

The audio-visual solutions provider announces another new business win with an international retail client. Following a successful initial project with this client in the UK in 2023, a further installation has been contracted for early 2024, with more stores expected in Europe later in the year. These latter projects would be delivered by the Group’s European subsidiary, based in the Netherlands, which continues to add other new business projects and has performed well during its first year of trading.

Proton Motor Power Systems 4.75p £73.8m (PPS.L)

The designer and producer of hydrogen fuel cells and hydrogen fuel cell electric hybrid systems, announces that it has successfully delivered 15 HyModule® S8 hydrogen fuel cell system to its long-term customer, GKN Hydrogen Italy S.r.l (GKN Hydrogen), as per the follow-up order from GKN Hydrogen announced on 31 January 2023. In addition, the Company has been awarded with a grant provided by the German Ministry for Economics and Climate (BMWK). The Company estimates that it will be eligible to receive up to approximately €300,000 over the 36 month period.

SDX Energy 4.05p £8.3m (SDX.L)

The company in transition from an oil & gas business into an integrated, hybrid energy-provider in Morocco, is divesting its Egyptian assets. SDX will maintain its upstream Moroccan gas assets and continue to produce natural gas, selling it to offtakers. The Company also intends, in the medium-term, to expand into renewable power generation - leveraging its strong gas offtaker base for a commercially compelling cross-sell of gas and green electricity. The Board remains confident that it is on track for the Egyptian sale and further announcements will be made once definitive legal documentation has been signed to effect the sale.

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