Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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Banquet Buffet

Alumasc 165p £59.6m (ALU.L)

The premium sustainable building products, systems and solutions group, announces results for the year ended 30 June 2022. Revenues from continuing operations went up 14.9% to £89.4m (2021: £77.8m) and the underlying operating profit increased 26.9% to £13.3m (2021: £10.5m). With the disposal of Levolux on 26 August, the group now has a simplified business model and can focus on core businesses. Chief Executive Paul Hooper indicated that FY23 trading to date has remained robust and order books are strong.

Chariot 18.5p  £177.2m (CHAR.L)

The Africa focused transitional energy company announces that it will partner with Total Eren, a renewable energy Independent Power Producer (IPP) based in Paris, to launch feasibility studies in order to co-develop the Nour Project, a large-scale green hydrogen project in Mauritania. With a potential reaching up to 10 GW of electrolysis to be installed, it could become, once fully implemented, one of the most significant green hydrogen projects in Africa. The partnership will be 50% owned by Chariot and 50% by Total Eren. 

D4T4 Solutions 231p £92.7m (D4T4.L)

The data solutions provider announces the release of paten-pending Celebrus CX Vault, the world’s first no-party, no-cookie technology. No-party data is defined as information gathering that does not use tracking, sharing, or cookies of any kind, allowing users to remain anonymous throughout an entire session, and no information is ever shared or sent to a server. CX Vault works by recognising the context of a browsing session in real time and then applies machine learning to further determine and interpret user interest. It is an ethical innovation that meets privacy regulations and respects consumers who opt-out of cookie usage.

Feedback 0.6p  £16.0m (FDBK.L)

The specialist clinical infrastructure company announces that it has been awarded a 12-month contract to provide its CDC solution to facilitate an extension of the current CDC pilot in Sussex to further GP practices and to enable the adoption of further clinical pathways. The discounted contract is valued at £450k and covers the period from 31st March 2022 when the pilot MOU formally ended. The contract will run until 31st March 2023 by which point QVH expects to have concluded a formal procurement for the next phase of the CDC programme rollout, as is required by NHS procurement policies. Feedback intends to submit a bid in this subsequent procurement phase.

Echo Energy 0.25p  £5.0m (ECHO.L)

The Latin American focussed full cycle energy company, announces its audited results for the year ended 31 December 2021. Revenue was US$11.1m, flat from 2020, and operating loss widened to US$7.2m from US$5.8m in 202o.  The net debt was US$28m on 31 December 2021. The business outlook depends on the successful completion of its debt restructuring announced in August 2022: (1) conditional conversion of EUR15m in principal and the accrued interest into new ordinary shares – the significant majority of which is proposed to be converted at a price of 0.45p; (2) proposal for a conditional reduction of the coupon on the remaining EUR10m of Euro Note debt from 8% to 2% with suspension of further cash interest payments for two years and an extension of maturity to 2032.

Inspired 11.55p  £112.6m (INSE.L)

The service provider supporting businesses in response to climate change, announces its consolidated, unaudited half year results for the period ended 30 June 2022. Revenue was £40.45m, up 24% year-on-year and profit before tax was £2.43m, up 159% year-on-year. Order book of £67.5m at 30 June 2022 remained consistent with levels seen at the end of 2021. The Board remains confident in achieving its full year expectations, despite higher volatility expected for the  Energy Assurance market in the short term.

STV Group  285.5p  £136.8m (STVG.L)

The production company headquartered in Scotland reported its half-year results to 30 June 2022. Revenue was £62.1m, up 3% and operating profit was £11.9m, up 22% year-on-year, driven by continued diversification. The company believes it is on track to hit or exceed 3-year growth targets by the end of 2023 to double Digital viewing, users and revenue (to £20m), quadruple Studios revenue (to £40m) and achieve at least 50% of operating profit from outside traditional broadcasting.

The Pebble Group  103.5p  £173.3m (PEBB.L)

The provider of digital commerce, products and related services to the global promotional products industry, announces its unaudited results for the six months ended 30 June 2022 (1H22). Revenue was £60.3m, up 29% from 1H21, and operating profit was £3.1m, 41% up from 1H21. Net debt at 30 June was £0.1m. Management continues to deliver on the stated strategies for Facilis group and Brand Addition. Working capital cycle follows its normal pattern, with the net cash position at the full year expected to be in line with current market expectation.  

ValiRx  13.8p  £12.4m (VAL.L)

The life science company focusing on early-stage cancer therapeutics and women’s health announces that, subject to standard regulatory due diligence, it intends to appoint Stella Panu as a Non-Executive Director. Stella has extensive experience as an investment management specialist with a particular interest in life sciences. CEO Dr Suzy Dilly commented “I’m delighted to start working with Stella, drawing on her vast commercial experience in deal making, to support both our licencing and M&A activities. As the first in our intended series of appointments, I’m excited by the prospect of expanding the breadth and depth of commercial expertise within the Company”.

Wynnstay Group  605p  £134.9m (WYN.L)

The agricultural supplies group provides a trading update for the financial year ending 31 October 2022. Thanks to the good weather conditions, the 2022 UK harvest started early and gives much greater visibility than usual on the likely outturn of the seasonally important fourth quarter. In addition, the continuing elevated fertiliser prices, particularly for ammonium nitrate, have increased trading results across all the Group’s fertiliser activities. Therefore, management expects the trading results for the current financial year to be significantly ahead of current market forecasts.

What’s cooking in the IPO kitchen?

Aurrigo Group plc, a international provider of transport technology solutions, intends to join AIM. The Group designs, engineers, manufactures and supplies OEM products and autonomous vehicles to the automotive, aviation and transport industries. Capital to be raised  and Mkt Cap TBC. Expected Mid-September.

Scythian Mining, a clean gold explorer and developer with operations in Kazakhstan, intends to IPO on the London Stock Exchange in mid-2023, due to successful drilling at Kokkus. Scythian is negotiating an additional funding agreement with a US investor for a further 15,000m of drilling to increase the Kokkus resource with a target of 2-3m oz Au plus a PFS before the IPO.

Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m.

Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late September.

Altona Rare Earths, the AQSE-listed mining exploration company focused on rare earth elements projects in Africa, intends to join the Main Market. The trading of its ordinary shares on the AQSE Growth Market will be cancelled simultaneously and its EPIC will be changed from from AQSE:ANR to REE. Conditionally raised £1.1m. Expected late September.

Mise en Place**

As a new Prime Minister visited Balmoral to meet the Queen, eyes were on the Pound which managed to claw back some value in early trading. CFD trading specialist CMC Market’s Chief Market Analyst Michael Hewson said that:

The pound managed to recover off its intraday lows yesterday in the aftermath of yesterday’s news, however the key test will be on how markets view the government’s next steps when it comes to dealing with the current crisis. Opinion appears mixed on whether all of the bad news is currently priced in to the pound, however it does appear to have squeezed quite a bit higher after the lows of yesterday.

While some short-term borrowing is unavoidable given the current challenges, the main focus will be on what steps the government intends to take to keep energy prices down and deal with the UK’s longer term energy security.”

*A corporate client of Hybridan LLP

** Content not provided by 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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