Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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FIH Group 250p  £31.3m (FIH.L)

The international specialist services group with businesses in the Falkland Islands and UK, updated on the Group’s trading performance for the year ended 31 March 2022. With trading activity heading back to pre-pandemic levels, the progress demonstrated in the Group’s first half results continued in the traditionally stronger second half of the year. The Board expects that, subject to the completion of the audit, the Group will deliver an underlying pre-tax profit for the year ended 31 March 2022 exceeding market expectations. The Falkland Islands Company, delivered overall results that were broadly consistent with the prior year. The previous year’s ban on tourists visiting the Falkland Islands continued, although these restrictions were lifted on 4 May 2022. Trading at Momart continued to improve, albeit activity was not back to pre-pandemic levels. Particularly strong results were delivered in the autumn serving commercial clients. Passenger numbers on the Portsmouth Harbour Ferry were at c. 80% of pre-COVID levels over the autumn, but dipped in December following Government guidance to work from home.  Recovery resumed following the lifting of this guidance at the end of January, and volumes were at circa 76% of pre-pandemic levels for the month ended 31 March 2022. The Group’s cash balance at 31 March 2022 c. £9.5m, £1.5m ahead of half year and broadly in line with the balance at 31 March 2021 after adjusting for the repayment of a £5m CBILS loan in June 2021. Bank loans were £14.2m (£14.6m at 30 September 2021) and included a £12.7m long-term mortgage on a freehold property at Leyton purchased in December 2018 for £19.6m.

Hardide 31.5p  £17.6m (HDD.L)

The developer and provider of advanced surface coating technology, announces that Robert Goddard has informed the Group of his intention to resign from his position as Chairman of the Board. To ensure a smooth transition, Robert will remain as Chairman while the search process for a successor is underway. The announcement of a successor will be made in due course. Robert Goddard, Chairman of Hardide plc, said: “Taking account of my increasing commitment to other companies, I now have the confidence to step aside as Chair, albeit with sadness. I leave the Group with a strong and highly capable management team led by Philip Kirkham, and technical team led by Yuri Zhuk, together with a competent, loyal and eager staff. Hardide is an extremely well-managed business and I have high confidence in the prospects of the Group.” Philip Kirkham, CEO of Hardide plc, said: “Robert has had a long and successful history with Hardide over the 14 years since he became Chairman. He has steered the Company through two recessions and a pandemic; culminating in good revenue growth and a stable financial position. The Group has been transformed throughout his stewardship due to his invaluable strategic leadership, expertise and diligence. Particularly, I would like to thank Robert for his support and guidance given to me over the years and he leaves with the profound thanks and best wishes from the Hardide Board and staff.”

One Heritage Group* 30.5p  £9.9m (OHG.L)

The UK-based residential developer focused on the North of England, has disposed of 5-9 Nicholas Street, Burnley, a Co-living property via the disposal of Nicholas Street Developments Limited. The transaction is with One Heritage Property Rental Limited, which is a related party to the Company due to common Directors, Jason Upton and Yiu Tak Cheung (Peter). One Heritage SPC – UK Property Development Fund SP2, is the parent company of the Buyer, for which Peter is the investment manager. The Property was acquired on 19 July 2019 originally as an office and converted into a 13 bedroom Co-living property following a substantial refurbishment. It is currently fully occupied by a corporate tenant on a rolling contract which is due to end in June 2022, subsequent to which a new corporate tenant has signed a 12-month tenancy. The Company will receive gross proceeds of £650k and recognise a gain of £190k. The Board (excluding Jason Upton and Peter due to their interests set out above) of the Company have approved the transaction. The Board is satisfied that the price achieved is in line with the market. David Izett, Non-Executive Chair of the Board commented “We are pleased to have finalised this transaction and at a price which comfortably exceeded our expectations”.

Rockfire Resources 0.49p  £5.25m (ROCK.L)

The gold and base metal exploration company, announced that reanalysis of historical diamond drill core has discovered the presence of one of the world’s critical metals, germanium, at the Molaoi zinc deposit in Greece. Critical minerals are metals deemed vital for world economies to continue to provide technology. The supply of germanium is largely at risk due to geological scarcity. The European Union Environmental Agency includes germanium in the top 20 raw materials which have been identified by the European Commission as being critical metals, owing to risk of supply shortages. The weighted average grade of the 51 samples collected during the reanalysis of core from Molaoi is 51 grams per tonne (g/t) Ge, with a peak value of 197 g/t Ge. 41% of samples returned germanium values above 50 g/t Ge. The germanium metal ingot price is currently US$ 1,330 per kilogram (USD$ 1.3M per tonne) which, if commercially recoverable in concentrate from Molaoi, would add material value to the overall financial metrics of the Molaoi Deposit. Germanium is used in the manufacture of everyday technology and numerous military applications. Often mined as a by-product of zinc ores, germanium is extracted commercially within the range of 50 g/t – 150 g/t Ge. Five samples returned copper values above 0.1% Cu. 39% of samples returned copper values above 200 parts per million (ppm). Assays have confirmed that the Molaoi deposit does not contain gold, indium or gallium. The Rockfire team is working towards a maiden mineral resource estimate for Molaoi, however germanium will not be included in this initial JORC resource estimate, due to the absence of germanium analysis in the historical data.

San Leon Energy SUSPENDED (SLE.L)

The independent oil and gas production, development and exploration company focused on Nigeria, notes the announcement made yesterday by Decklar Resources Inc. in Canada.  San Leon has a 11.5% shareholding in Decklar Petroleum Limited (DPL), the local subsidiary of Decklar operating in Nigeria, and has also made a US$5.5m loan to DPL, via 10% per annum unsecured subordinated loan notes. Part of the text of Decklar’s announcement is set out below: Decklar and its co-venturer have commenced loading crude oil into trucks at the Oza Oil Field from storage tanks for delivery to the Umugini Pipeline Infrastructure Limited (UPIL) crude handling facilities for further transfer to the Shell Petroleum Development Company of Nigeria Limited (SPDC) Joint Venture Forcados Oil Export Terminal via the Umugini Pipeline. When loading of crude oil from storage has reached 5,000 barrels, production from the Oza-1 well will start in order to enable ongoing shipments by truck to UPIL.

Semper Fortis Esports*  0.98p £4m (AQSE:SEMP)

The esports and gaming company focused on establishing esports teams, Web3 communities and forming brand and technology partnerships, has reached an agreement to sign 3 new talents for their SMPR Esports talent roster. Jack Wignall (‘GoalPoacher’), Preston, UK, has signed a 1-year deal to represent SMPR FIFA team. Jack is a seasoned player and considered to be one of the best upcoming talents in professional FIFA. At just 17 years old, Jack has recently won the ePremier League, representing Norwich Football Club; Ayaan Ahmed (‘Asura’), London, UK, has signed a 1 month trial contract to represent SMPR as a content creator and commentator across Nintendo Smash Bros and other games. Upon completion, an option to extend his contract by 11 months will be activated. Ayaan is an experienced gamer and professional commentator across a number of games, mainly Smash Bros. His signing will prove pivotal in creating a voice  which SMPR can use across broadcasting efforts moving forward; Kim-Philippe Ruddy Badiabio, London, UK, has signed a 1-month trial contract to represent SMPR as a content creator across Tekken and other fight-based games. Upon completion, an option to extend his contract by 11 months will be activated. Kim is a well-known and experienced fighter across the niche fighter game Tekken, amongst a number of other fighting games. His experience in the pro Tekken scene will be significant in promoting SMPR across this category and gaining exposure to its audiences. SMPR has recently terminated the contract of FIFA professional Jaskarn Singh.

Supreme 135p  £157.5m (SUP.L)

Supreme, a leading manufacturer, supplier, and brand owner of fast-moving consumer products, notes confirmation of the sale of McColl’s Retail Group plc  to Alliance Property Holdings, part of the Morrisons Group. The Company wishes to clarify that it has always served the McColl’s store estate via a distribution agreement with Morrisons (meaning Supreme delivers and invoices to Morrisons directly). The Company estimates that the McColl’s estate contributed approximately £350k in revenue to the Group (less than 0.5%) for the year ended 31 March 2022. The Company continues to trade well and looks forward to updating the market further at the announcement of its year end results in July.

Versarien 17.8p  £34.6m (VRS.L)

Global sportswear brand Umbro will integrate Versarien’s Graphene-Wear™ technology into its Elite Pro-Training Kit range, initially for the 2023 spring/summer collection. Versarien has been working on several projects with Umbro since 2018 and this is the first to lead to products being launched. Versarien’s Graphene-Wear™ ink formula will be printed on the inside of the new Elite Pro-Training Kit garments. The Graphene-Wear™ formula features novel properties that will allow wearers to experience enhanced thermal transmittance, increased moisture management, with improved drying rate, without compromising air or water vapor permeability. The garments will also have Versarien’s Graphene-Wear™ trademark applied. In developing the Graphene-Wear™ technology, Versarien has invested in extensive wearer trials in partnership with The University of Gloucester, product testing to international standards with a recognised testing house and the publication of a white paper, all aimed at giving the Company’s partners, such as Umbro, confidence in the technology. The Company looks forward to providing further updates in due course as Umbro’s new Elite Pro-Training Kit range is rolled out.

XL Media 29.75p  £77.3m (XLM.L)

The global digital performance publisher, has entered into a media partnership with Advance Local to be the exclusive provider of sports betting content for cleveland.com, the premier Ohio news and information website attracting an average of 9.9m unique users every month. Cleveland.com represents XLMedia’s largest media partner to date, offering key U.S. and regional coverage by capitalising on the brand’s massive Ohio-based audience, a state slated to legalise mobile betting in Q4 2022. The deal provides cleveland.com advanced abilities to capture new revenue streams and is another proof point showcasing XLMedia’s strong capabilities to monetise highly engaged audiences via partnerships. XLMedia has an industry-leading media partnership business offering significant scale, high quality commercial content and access to high-value advertiser relationships for leading publishers across the U.S. and Canada. Within the agreement, XLMedia will focus on creating highly engaging content related to sports betting across leagues like NFL, MLB, NBA, NHL, UFC, NCAA sports and more. The team will also manage commercial deals with regulated sportsbook operators, and execute proven monetisation strategies built upon years of industry expertise.

Xtract Resources 5.05p  £43m (XTR.L)

Independent laboratory assays have been received for a number of drill holes including, BRDD-21-023, BRDD-21-025, BRDD-21-029, BRDD-21-033, BRDD-21-034, and BRDD-22-044 from the Phase 2 diamond drilling programme at the Bushranger copper-gold exploration project. Best results include; ·2m at 15.50g/t Au from 191m in drillhole BRDD-21-033. 18m at 0.34% CuEq from 388m in drillhole BRDD-22-044. 12m at 0.29% CuEq from 242m in drillhole BRDD-21-029. 10m at 0.57g/t Au from 530m in drillhole BRDD-21-023. Drill hole BRDD-22-044 tested the along-strike continuation of mineralisation to the north from the discovery hole (BRDD-21-035) at the Ascot prospect, a wide 52m interval of 0.21% CuEq was returned from a depth of 388m giving confidence that the mineralisation extends along-strike by up to 250m in this direction. Drill Hole BRDD-21-033 targeted an outlying geophysical anomaly to the east and intersected a high-grade gold interval of 15.5 g/t Au which warrants follow-up drilling to test for along-strike and down-dip extension. Drillhole BRDD-21-023 targeted a northerly continuation to the main Racecourse mineralisation and intersected anomalous levels of gold which could indicate a structural control on the mineralisation in this area. Drillholes BRDD-21-025, BRDD-21-029 and BRDD-21-034 were all exploratory holes which targeted outlying geophysical anomalies or the continuation of mineralisation south of Racecourse and north of Ascot. All holes intersected porphyry related alteration along within zones of anomalous copper and gold. BRDD-21-025 was largely un-mineralised.

What’s cooking in the IPO kitchen?

EnSilica, intends to join AIMEnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). ASICs are integrated circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help differentiate products through optimised hardware thereby making products smaller, faster, lower power and more secure and can provide novel functionality, improve supply chain security and protect products from being copied. The Company has expertise in designing complex mixed signal ASICs, which combine digital and analogue functions onto a single chip. Mkt Cap TBC. Due late May 2022.

GS Chain, a company established with the purpose of undertaking acquisitions of an interest in an operating company or business in the technology sector, intends to list on the Main Market (Standard). Timing TBC.

Altona Rare Earths, the AQSE listed mining exploration company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE.  The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due May 2022.

*A corporate client of Hybridan LLP

This document has been prepared by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or 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. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. 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. 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. 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. 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. 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 direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook).


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