Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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Banquet Buffet

Cornerstone Fs 11p  £2.6m (CSFS.L)

The cloud-based provider of international payment, currency risk management and electronic account services to SMEs, announces the appointment of James Hickman as Chief Executive Officer. James is serving out his notice with his current employer and so his appointment will take effect on 12 September 2022. James has over 19 years’ experience within the payments industry. Most recently, James was Chief Revenue Officer at Fire Financial Services Ltd, and previously, Chief Commercial Officer at AIM-quoted Equals plc.

CT Automotive 115p  £58.6m (CTA.L)

The manufacturer of automotive interior finishes and complex kinematic assemblies, provides a trading update for the half year ended 30 June 2022 (H1 2022). Revenues for H1 2022 were c.$55m, ahead of the Board’s expectations. Despite reduced vehicle production volumes in H2 2021, primarily due to semiconductor shortages, continued into H1 2022. While the company’s underlying trading performance was in line with expectations, gross margin in the period was impacted by Covid-related lockdowns in China and the associated disruption to freight, as well as inflationary cost pressure and labour shortage. The Board expects global vehicle production volumes to continue to recover during 2022 and supply chain issues to resolve fully in 2023. 

Eckoh 44p  £128.0m (ECK.L)

The provider of secure payment products and customer contact solutions, announces it has won a 2-year contract worth a minimum of $1.3m with a global hotel company. The company has also won a contract for voice payment security with the Irish division of one of the world’s largest insurance companies, worth a minimum of £0.6m over 5 years. Additionally, the company’s total orders for the first quarter of FY23 are substantially higher year-over-year. Order levels are expected to remain and in line with the Board’s expectations.

Inspiration Health Group 98.5p  £67.1m (IHC.L)

The global medical technology company provides a trading update for the six months ended 31 July 2022. Trading levels have remained robust and consistent with management expectations. The move to new premises in Croydon has been completed, to cope with the increasing volume of business and growth. Neil Campbell, Chief Executive Officer, indicates healthy sales levels  and confidence in achieving the annual targets

MTI Wireless Edge 57p  £50.5m (MTI.L)

The technology group focused on communication and radio frequency solutions, announces its financial results for the six months ended 30 June 2022. Revenue grew by 6% to US$22.7m (H1 2021: US$21.3m). EBITDA increased by 11% to $2.9m (H1 2021: $2.6m), with contributions from all three divisions. Moni Borovitz, Chief Executive Officer, indicates that there are some signs of the supply chain issues easing and the company has a healthy order book going into H2 2022 and beyond. After a number of price increases to maintain target profit margins, management feels confident about the outcome for the full year.

Portmeirion Group 407.5p  £57.0m (PMP.L)

The global brands for ceramic tableware, cookware, giftware, glassware, home fragrance products and associated housewares, announces it has acquired the AromaWorks London brand, with no ongoing liabilities from AromaWorks Limited. The total consideration of £0.44m for the intellectual property, inventory and certain fixed assets is payable in cash and has been financed from Portmeirion’s existing cash resources. For the year ended 31 December 2021 (unaudited), AromaWorks had sales of £4.1m and a headline profit before taxation of £0.3m. This acquisition will add further scale and provide cost synergies and cross-selling opportunities within the business.

Renew Holdings 701p  £552.8m (RNWH.L)

The engineering services company supporting UK infrastructure, announces the appointment of Elizabeth (Liz) Barber as a Non-Executive Director, effective 1 November 2022. Liz brings a wealth of experience gained over 12 years’ experience in the regulated water sector. She was until recently the CEO of Kelda Group / Yorkshire Water.

Safestay 14.5p  £9.4m (SSTY.L)

The owner and operator of an international brand of contemporary hostels, announce its final results for the 12 months to 31 December 2021. Total revenues were £6.4m, an increase on 2020 (2020: £4.8m) but still significantly below 2019. Profit before tax was £0.7m (2020: loss of £9.9m). EBITDA totalled £7.2m including profit on property disposals (2020: loss of £3m). Due to Covid-19 the Group’s hostels were only open for 44% of 2021 (2020: 43%). Safestay has had a steady start over first 5 months of the year, with revenue running at around 81% of pre-pandemic levels and in-line with management’s expectations.

Seeing Machines  6.3p  £263.5m (SEE.L)

The advanced computer vision technology company, provides a trading update for the year ended 30 June 2022 (FY2022). Revenue is expected to be A$54.2m, a 15% increase and in line with expectations. Annualised recurring revenues increased by 20% to A$20.7m. Aftermarket business continued to grow as Guardian and additional Automotive programs have started production. However, supply chain pressures affected Guardian hardware costs and the ability to meet demand. This has resulted in all available stock sold in FY2022 and over 2k Guardian units ordered but not yet supplied, representing around A$3.5m in forward orders to be recognised in FY2023. Supply chain issues have been resolved, with satisfactory stock guaranteed by H1 2023.

Vast Resources 0.67p  £9.9m (VAST.L)

The mining company announces that the official opening ceremony for the Takob joint venture project at the Takob Mine in Tajikistan (Takob Processing Project) with Open Joint Stock Company Korkhanai Boygardonii Takob (Takob) has taken place. Vast will receive a participation equivalent to a 12.25% royalty over all sales of non-ferrous concentrate and any other metals produced from the Takob Processing Project.

What’s cooking in the IPO kitchen?

Unigel Group, intends to join the Aquis Growth Market.  Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports to over 40 countries and is a key supplier to almost every leading fibre optic cable manufacturer worldwide and is the industry’s only organisation with multiple manufacturing facilities spread across 3 continents. The Company acts as the holding company for its wholly-owned operating subsidiary, Unitape Limited and its 60% owned operating subsidiary, Unigel (UK) Limited. Delayed, timing TBC.

Georgina Energy, an early-stage resource company with a strategy of actively pursuing the exploration, commercial development and monetisation of helium, hydrogen and hydrocarbon interests located in the Amadeus and Officer Basins in Northern and Western Australia intends to join AIM. Georgina Energy has two principal onshore interests. The first, the Mount Winter Prospect is located in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest. The second interest, the Hussar Prospect is 100% owned by the Company and is located in the Officer Basin in Western Australia. Expected late September.

Mise en Place**

Asian markets started the week well, but the latest retail sales and industrial production figures suggest that issues remain in the Chinese domestic market. Spread betting and CFD trading company, CMC Market’s Chief Market Analyst Michael Hewson said that:

The recent China trade numbers may have been lauded for seeing a strong recovery in exports, however the weak imports number still gave the impression that domestic demand remains weak.

This weakness in the Chinese economy comes against the struggle to adapt to a zero-covid policy, which the government shows little sign of relaxing, against a backdrop of rising cases. Problems in the property sector also aren’t helping, where many home buyers are halting mortgage payments in protest at delays to the completion of new homes.

China’s economy contracted by 2.6% during the second quarter

*A corporate client of Hybridan LLP

** Content not provided by Hybridan LLP

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