Hybridan Small Cap Feast

Joiners: No joiners today.

Leavers: City of London Group has left AIM today.

Banquet Buffet

Animalcare Group 187.5p £112.7m (ANCR.L)

The international animal health business provides a trading update for the year ended 31 December 2022. Revenue is c£71.6m, down 3% (2021: £74.0m). Trading activity in 2022 reflected the continued moderation of market growth across Europe. Underlying EBITDA is anticipated to be broadly in line with market expectations. Net debt stood at c£5.4m at year end (2021: £5.3m).

Aquis Exchange 370p £100.5m (AQX.L)

The creator and facilitator of next-generation financial markets, through the provision of accessible, simple and efficient stock exchanges, trading venues and technology, provides a trading update for the year ended 31 December 2022 (FY22). Aquis confirms that it expects to report performance for FY22 in line with market expectations. The Board anticipates making further progress during 2023 and expects to continue to perform in line with expectations.

Cadence Minerals 15.75p £27.2m (KDNC.L)

The early stage investor and developer in the mineral resource sector, announces that Evergreen Lithium Limited (Evergreen) has filed its admission prospectus with Australian Securities & Investments Commission and the Australian Stock Exchange (ASX). Cadence owns approximately 15.8m Evergreen shares which are anticipated to represent 8.7% of the issued share capital of Evergreen on admission. Evergreen’s indicative timetable for admission is 10 March 2023.

Flowtech Fluidpower 112p £68.9m (FLO.L)

The specialist full-service supplier of technical fluid power products and services, provides a trading update for the year ended 31 December 2022. Group revenue was c£114.8m, up 5.2% from the prior year.  Underlying profit for the year is expected to be in line with market expectations. Net debt (excluding IFRS16 related debt) was £16m, up 0.6% year-on-year and management expects this to decrease in 2023 as inventory is reduced.

Gama Aviation 69.5p £44.5m (GMAA.L)

The aviation service provider announces the full repayment of its £20m HSBC Term Loan Facility due on 31st January 2023. Consequently, all the loan obligations have been fully discharged and the associated securities are in the process of being released. The repayment was funded by a combination of the c$10m proceeds of the new US credit facilities announced on 30th December 2022, working capital and cash at hand. Negotiations with other lenders are ongoing to secure the additional funding required to execute the near-term growth strategy. As at 25th January 2023, and following the repayment of the HSBC loan, the group held cash balances of $10.4m and net bank debt stood at $1.9m.  

Idox 64.1p £289.2m (IDOX.L)

The supplier of specialist information management software and solutions to the public and asset intensive sectors, reports its results for the year ended 31 October 2022. Revenue increased by 6% to £66.2m (2021: £62.2m), driven by growth in Public Sector Software. Recurring revenue increased by 12% to £40.5m (2021: £36.3m), and now account for 61% of the total revenue (2021: 58%). Adjusted2 EBITDA increased by 15% to £22.5m (2021: £19.5m), driven by operational improvements, acquisitions, and business mix. Management continues to target further acquisitions and expects double digits growth in FY23.

Ilika 56.5p £89.2m (IKA.L)

The pioneer in solid-state battery (SSB) technology announces that it is leading a 24-month £8.2m Faraday Battery Challenge collaboration programme to integrate high silicon content electrodes into its Goliath solid-state batteries (SSB) to enable automotive level performance. Ilika will receive a grant of £2.8m over the 24-month programme, Project HISTORY, which will commence on 1 February 2023. BMW Group and Williams Advanced Engineering will join the programme’s steering committee. Ilika will partner with Nexeon, one of the UK’s leading manufacturers of battery materials, and experts from four of the UK’s top academic Universities and Catapult to deliver an automotive industry-defined SSB by programme end. Alongside, Ilika will be working with manufacturing consultants HSSMI to deliver an SSB Life Cycle Analysis

Novacyt S.A. 76.5p £54.4m (NCYT.L)

The international specialist in clinical diagnostics announces a trading update for the year ended 31 December 2022. Reported revenues and EBITDA for the period are both expected to be in line with guidance. Revenue for FY22 was £21.0m, compared to £92.6m for FY21, due to the expected decline in COVID-19 related sales. EBITDA loss in FY22 is anticipated to be circa £13.5m before exceptional items (2021: £3.1m1 profit). Cash position at 31 December 2022 was £87.0m (2021: £101.7m) and the company remains debt free.

One Heritage Group* 13.5p £5.2m (OHG.L)

The residential developer focused on the North of England, provides a business update. Due to cost pressures and labour shortages, OHG expects an impairment of £0.75m-£1.25m in 1H-FY23 (ended in December 2022) for its development projects Bank Street, Sheffield,; St Petersgate, Stockport and Oscar Home, Manchester. Meanwhile, Mr Paul Westhead has been appointed as Interim Development Director. One Heritage Property Development Limited has increased its shareholder loan facility from £9.5m to £11.0m with the £2.0m increase repayable by 30 June 2023. Finally, OHG completed the acquisition of Seaton House, Wellington Street, Stockport for £675k following a 12-month delay. The project is anticipated to produce net revenue of £5.6m. Oscar House, St Petersgate and Bank Street developments are scheduled for completion before the end of June 2023.

Rotala 48p £23.6m (ROL.L)

The U.K. operator of bus routes for businesses, local authorities and the general public, announces that it proposes to return up to £10mn by way of a tender offer at the tender price of 55 pence per share. Each eligible shareholders is entitled to tender 35.7% of the shares held by them at the record date. The Directors are unanimously recommending shareholders to vote in favour of the tender offer at the General Meeting on 16 February as they have irrevocably undertaken to do in respect of their own beneficial holdings of shares amounting, in aggregate, representing approximately 31.82% of Rotala’s issued share capital. In order to finance the tender offer, Rotala has drawn down £10m on its existing revolving commercial loan facility from HSBC Bank.

What’s cooking in the IPO kitchen?

Celsius Resources intends to join AIM. Currently ASX listed, Celsius is a natural resources exploration and development company principally seeking to explore and develop potential world-class copper-gold assets in the Philippines and a cobalt asset in Namibia. £2.4m to raised. Anticipated market cap £14.8m. Expected 30th January 2023.

Conviction Life Sciences, a newly established closed-ended investment company managed by Plain English Finance Limited, is seeking to list on Premium Segment of the Main Market of the London Stock Exchange, to invest in a conviction portfolio of life sciences and medical technology businesses, primarily in the UK, Europe and Australasia. The Company will invest in both publicly traded and private companies – c. 70% and c. 20% of the total portfolio value respectively. The Company will target an annualised Total NAV Return of 20% over the long-term. Targeting to raise c.£100m. Delayed to 3rd February 2023.

*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).