Dish of the day

Joiners: 

Mydecine Innovations Group (AQSE: MIVG), a biotech and life sciences company that is building an R&D pipeline of nature-sourced psychedelic-assisted therapeutics, novel compounds, therapy protocols, and unique delivery systems has joined the AQUIS Growth Market, with a market capitalisation  on admission of £4.5m. 

Leavers: 

Whilst we were away, Lookers (LOOK) left the market on Monday 9th 

 

What’s cooking in the IPO kitchen?** 

Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Admission expected on 10 October. 

 

MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of Shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). The Company is looking to raise £10m - £15m on IPO and announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. Admission to trading on AIM is expected to be 18 October.

 

Announced ITF 2 October: Adsure Services, the holding company for TIAA Limited, a specialist business assurance provider operating across the Housing, Healthcare, Government, Education, Charities, and other sectors in the UK, intends to join the Access Segment of the AQSE Growth Market. Admission expected on 16 October.

 

Banquet Buffet*** 

Acuity RM Group 5.25p  £6.4m (ACRM.L) 

Previously known as Drumz plc, and an established provider of risk management services announce that its wholly owned operating subsidiary, Acuity Risk Management Limited, has won a new three year contract worth £85k, for the use of Acuity's software platform, STREAM®  by a new client to manage their cyber security and other enterprise risks. This client is a multi-national telecoms business and is expected to lead to further contracts with this customer. 

 

Crimson Tide  1.95p £12.8m (TIDE.L) 

The provider of the mpro5 solution, extends its reach into educational catering and the Irish Government with additions and extensions to existing contracts, the Company has been working with one of the UK's educational catering providers since late 2021 to digitise food safety logbooks. Initially piloted in 50 locations, this increased to 950 sites across the UK. The latest expansion represents a 50% increase to the MRR of the contract and takes the total contracted revenue, which still has 20 months to run, to £270k. This deal enables mpro5 to help deliver over 150 million school meals every year. The Company also reports a new contract with an existing government body in Ireland that includes a 56% increase in MRR, raising the total value of the new 3-year contract to over EUR460k. 

 

Coro Energy* 0.26p  £7.5m (CORO.L) 

The South East Asian energy company with a natural gas and clean energy portfolio, announces that it has signed a Memorandum of Understanding (MoU) with Mobile World Investment Corporation in Vietnam to install rooftop solar systems across their Vietnamese portfolio. Mobile World Investment Corporation operates at over 3,600 locations across Vietnam with the potential to install 360MW of rooftop solar across all locations. The MoU grants Coro exclusivity on an initial 900 company sites (estimated at 50MW of rooftop solar capacity). Coro will build, own, and operate each rooftop solar system and sell all generated electricity directly to each Mobile World Investment Corporation location under a 14-year Power Purchase Agreement, extendable in certain circumstances, with variable pricing and a floor price of US 11.2 cents/kilowatt hour. 

 

CyanConnode Holdings 10.75p  £29.2m (CYAN.L) 

A Company focusing on Narrowband Radio Frequency (RF) Smart Mesh Networks, announces the receipt of an order for 300,000 Omnimesh Modules from IntelliSmart Infrastructure Private Limited. The order marks the fourth order received under a Strategic Framework Agreement for 3 million modules, signed in February 2023. Including this order, the total number of modules ordered is 1.7 million Omnimesh Modules. The supply of Omnimesh Modules is expected to commence during Q4 FY 2024, and the deployment will be completed within 27 months. 

 

Ensilica 70.5p  £55.1m (ENSI.L) 

A mixed signal chipmaker announces full year results for the year ended 31 May 2023 (FY 2023). Revenue increased to £20.5m (FY 2022: £15.3m) as a result, operating profit increased to £0.83m (FY 2022: adjusted £0.70m). EBITDA of £1.56m (FY2022: £1.04m) and the Company holds cash and cash equivalents at 31 May 2023 of £1.07m. The Company announced key contract wins and contract extensions including a major industrial factory automation design win worth $30m and a  EUR5m contract award to develop Satellite Broadband Chip funded by UK Space Agency with a customer. The Board believes the Company is well placed to continue to capitalise on growth opportunities.  

 

Enteq Upstream 11.25p  £7.9m (NTQ.L) 

The energy services technology supplier, announces the appointment of David MacNeill as an independent non-executive director with immediate effect. David MacNeill has over 30 years' knowledge in the international energy sector with extensive experience across drilling businesses and has a background in directional drilling, with direct exposure to rotary steerable system development and operations. 

 

Griffin Mining 93.2p  £178.7m (GFM.L) 

A mining and investment company, incorporated in Bermuda, with a 88.8% holding of their major interest in Hebei Hua Ao Mining Industry Company Limited announces that, in partnership with Zhang Jia Kou GuoAO (Partner), the Company has successfully commissioned a 6MW solar energy generating facility at the Caijiaying Mine. The Facility contains 25,753 square metres of solar panel surface area. With the soon to arrive battery energy saving system, under normal weather conditions, the Facility is expected to be able to supply up to 30% of the Caijiaying Mine's total electrical energy consumption, and during periods of shutdown the system can also supply excess capacity back into the local grid. 

 

Image Scan Holdings 2.15p  £2.9m (IGE.L) 

The specialist supplier of X-ray screening systems to the security and industrial inspection markets provides a pre-close trading update for the year ended 30 September 2023 (FY23). Unaudited revenue is expected to be c. £3m for FY23 (FY22: £2m) an increase of 50% and pre-tax profit c.£0.1m (FY22: £0.35m loss). Restructuring and cost control programs, previously reported have contributed to the return to profit, coupled with prudent cash management, as a result the Company closed the year with £959k cash (FY22 £690k). The industrial activities of the Group have continued at expected level. 

 

Intercede Group 48.5p  £28.2m (IGP.L) 

A cybersecurity software company specialising in digital identities, provides an update on trading for the first half of the year to 30 September 2023. Intercede revenues grew, across all segments, for the six months to £7.0m approximately 15% higher and is in line with management expectations. The Group had cash reserves of £9.7m as at 30 September 2023 compared to £8.3m as at 31 March 2023 reflecting positive operating cash flow and continued tight control of working capital) and the Group has no debt. 

 

REACT Group 1.6p  £16.9m (REAT.L) 

The specialist cleaning, hygiene, and decontamination company, announces it has been awarded a contract extension to provide contracted maintenance, cleaning and hygiene services within the education sector for a major university. The extension has a total value of c.£3.8m (£1.27m per annum) during the contract term of three years. 

 

* A corporate client of Hybridan LLP

** Arranged by most recent first

*** Alphabetically arranged

 

Status of this Note and Disclaimer

This document has been issued to you 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).

This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii)  persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority's Conduct of Business Sourcebook.

Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.