Hybridan Small Cap Feast

Joiners: No joiners today.

Leavers: No leavers today.

Banquet Buffet

Bidstack Group 3p  £27.9m (BIDS.L)

The in-game advertising and video game monetisation platform, announces the completion of an equity fundraise consisting of a conditional placing and a subscription by Irdeto B.V. announced on 5 October 2022. The Placing Share and Subscription Shares raised gross proceeds of £10m and shares were placed at 2.85 pence representing a nil discount to the closing middle market price on 5 October 2022, i.e., the last practicable dealing date prior to the date of this announcement.

Brown (N) Group 21.4p  £98.5m (BWNG.L)

The apparel, footwear, and homeware retailer announces its interim results for the 26 weeks ended 27 August 2022 (1H FY23). Group revenue fell by 4.6% to £331.6m (H1 22: £347.4m), reflecting tougher trading conditions and weakening consumer confidence. Adjusted EBITDA reduced 46.9% compared to 1H FY22 when the Covid-19 IFRS 9 credit loss provision was released. Product revenue declined 9.4% during the second quarter and the downward trend is continuing into September and likely through H2 FY23. Management expects FY23 adjusted EBITDA to be in the region of £60m. 

Eckoh 44p  £128m (ECK.L)

The global provider of Customer Engagement Security Solutions, provides an update on order levels for the first half of the financial year. Order levels are expected to be over £17m, more than 50% higher than the previous year and in line with the Group’s expectations and previous guidance. This is particularly driven by renewed activity in the US. Eckoh’s order book strength supports the Group’s expectations of significant revenue and profit growth in FY23.

Haydale Graphene Industries 1.85p  £14.5m (HAYD.L)

The global advanced materials group, announces its results for the year ended 30 June 2022. Revenue was flat at £2.90m (FY21: £2.90m), while loss for the year widened by 41% to £4.81m (FY22: £3.41m). Gross profit marginally reduced to £1.75m (FY21: £1.98m) delivering a gross profit margin of 60.0% (FY21: 68.2%). Throughout the year the Company scaled up operations to take advantage of business opportunities and made investments in both the functionalisation capacity and in the wider team. The Board remains confident that the Company will be able to take advantage of the commercial traction it is seeing. 

Image Scan Holdings 1.05p  £1.4m (IGE.L)

The supplier of X-ray screening systems to the security and industrial inspection markets, provides a pre-close trading update of its unaudited results for the year ended 30 September 2022. Further to the revised guidance issued on 22 February 2022, revenues and profit for the year will be below market expectations principally due to the slippage of contracts into next year. The second half has been challenging due to government contract delays and component supply issues, which is expected to continue for the foreseeable future. Management retains its optimistic outlook for an improved 2023.

IQGeo Group 159p  £97.6m (IQG.L)

The developer of geospatial software for telecom and utility operators, announces the following contract wins; i) A major Dutch utility has selected the IQGeo geospatial software to provide office and field access to its gas and electric network information. The overall software contract is worth EUR2.6m as a subscription over 6 years plus an initial order of c.EUR0.5m for services. ii). 2 contracts with 2 top-10 US based fibre network operators. The first is worth US $2.8m over 3 years and the second is for an initial one-year contract worth $0.6m.

Keyword Studios £24.37  £1,875.5m (KWS.L)

The international technical and creative services provider to the global video games industry, announces that it has completed the acquisition of Smoking Gun Interactive Inc. on the terms previously announced on 21 September 2022. Keywords will pay a maximum amount of CAD$40m, comprised of initial cash consideration of CAD$16m, the equivalent of CAD$4m in new ordinary shares to be issued within 30 days of completion, and up to CAD$20m, in a mix of cash and new ordinary shares based on the achievement of growth targets over the year following completion.

MTI Wireless Edge 49p  £43.3m (MWE.L)

The technology group focused on communication and radio frequency solutions, announces that its Antenna division has won a contract worth approximately US$0.6m from a local customer in Israel. The contract is for the development and delivery of several prototype antennas for defense use, which are to be supplied in the next 12 months. If the prototypes meet the specialist performance criteria, then there is the potential for further larger-scale orders.

Seeing Machines 6.49p  £269.5m (SEE.L)

The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, announces an exclusive collaboration agreement with Magna International, to pursue driver and occupant monitoring system business targeting the vehicle’s interior rear-view mirror. At the same time, Magna is investing $65m into in Seeing Machine via an exclusivity arrangement payment of $17.5m and up to $47.5m through a convertible note maturing in October 2026. The conversion price per ordinary share will be 11 pence and the note has an all-in yield of 8%, inclusive of fees.

Victoria Plumbing Group 41.8p  £135.7m (VIC.L)

The online specialist bathroom retailer, provides a trading update for the year ended 30 September 2022 (FY22). The financial year finished positively with revenue, earnings, and cash flow all ahead of consensus market expectations. H2 revenue was up c.5% on last year, with a particularly strong Q4 performance with revenue for FY22 broadly unchanged from FY21. Victorian Plumbing remains cash generative and will start FY23 with in excess of £43m of net cash. A strong inventory position is maintained to maximise availability and minimise the risks from supply chain disruption.

What’s cooking in the IPO kitchen?

TECC Capital plc, to be renamed EDX Medical Group, intends to join the AQSE Growth Market. EDX operates a molecular biology and diagnostics laboratory in Cambridge, UK, from which it performs research & development, provides Polymerase Chain Reaction (PCR) testing and genomic sequencing services, undertakes quality assurance and has established expertise in the design, development, validation and sourcing of Lateral Flow Tests on a commercial scale. Due 31 October 2022.

Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed “pure-play” conversational gaming company. Raising between £5-10m. Due around 6 October.

The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invests in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. Raising £200m. Expected 12 October 2022.

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. Due 3 November 2022.

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 October.

*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).