Dish of the day

Joiners: 

No joiners today.

Leavers: 

The Fulham Shore Plc (FUL.L) has left AIM

Sureserve Group Plc (SUR.L) has left AIM

 

What’s cooking in the IPO kitchen?** 

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. Expected Admission 21 July 2023. 

 

Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join the Access Segment of the AQSE Growth Market. Expected Admission 20 July 2023. 

 

Metals One Plc, a company focusing on acquiring natural resources projects with a focus on critical battery metals, including nickel, lithium, cobalt and copper intends to join the AIM Market. The Company will have interests in the Paltamo and Rautavaara projects (nickel, copper, zinc) in Finland (together the Black Schist Project) and the Brownfield Råna Nickel project in Norway (Brownfield Rana Project). These projects represent opportunities to develop deposits of scale, in stable jurisdictions, well situated to supply fastest growing European electric vehicle and energy storage markets. The Company aims to raise £2.5m at 5 pence per share with an anticipated market cap of £10.77m. Expected Admission date is 17 July 2023.

 

Ora Technology plc, a software company developing a digital carbon trading platform, offering users the ability to buy, sell and retire verified carbon credits in the voluntary carbon market, intends to join the Access Segment of the AQSE Growth Market. Ora’s platform aims to allow access to carbon assets - and the broader carbon economy - with the goal of reducing the complexity of current industry practices, and an emphasis towards providing a simple and intuitive user experience. 

 

Praetura Growth VCT plc, a newly established VCT announces its intention to float on the Main Market of the London Stock Exchange. The Company will provide growth funding to scalable businesses predominantly based in the North of England, across a range of sectors including technology and healthcare. The Company will be managed by Praetura Ventures Limited, a venture capital and EIS business associated with the wider Praetura Group, a Manchester based venture capital investor and small business lender. The Company is targeting to raise £10m at 1 pence per share, via an offer for subscription. The Directors will have the option to utilise an over-allotment facility that will allow the Company to issue a further 10m Ordinary Shares under the Offer

 

Banquet Buffet*** 

B90 Holdings 7.3p  £20.9m (B90.L) 

The online marketing and operating company for the gaming industry, announces that it has entered into a share purchase agreement with Funko International AB (Funko) to acquire the entire share capital of Emwys AB (Emwys), a Swedish marketing company focusing on the online gambling sector. The total consideration payable by B90 is, in aggregate, up to EUR3.6m for Emwys' entire share capital on a cash free and debt free basis. The initial consideration payable is an immediate payment of EUR500k in cash and EUR250k in the form of convertible loan notes. The Transaction will provide B90 with a significant asset to enhance its marketing capabilities and generate future revenue through strategic affiliate partnerships. The expected closing date for the Acquisition is no later than 1 September 2023. 

 

Dekel Agri-Vision 2.95p  £16.5m (DKL.L) 

The West African agriculture company focused on building a portfolio of sustainable and diversified projects, provides a half year production update for the period ending 30 June 2023 (H1 2023). The Palm Oil Operation experienced a significantly stronger high season with Fresh Fruit Bunch volumes and Crude Palm Oil (CPO) production increasing 52.1% and 49.0% respectively. CPO sales quantities increased 22.4% in H1 2023 compared to last year. Given the high season arrived much later than normal their CPO stock levels at the end of H1 2023 are much higher than typical at over 4,800tn. The H1 2023 average CPO sales price achieved was historically strong at EUR934 per tonne, albeit 7.8% below the record H1 2022. The Company expect to deliver a strong H1 financial performance for the Palm Oil operation. 

 

Itaconix 4.2p 28.3m (ITX.L) 

The innovator in sustainable plant-based polymers used to decarbonise everyday consumer products, provides a trading update for the half year to 30 June 2023. The Company achieved consecutive years solid results with unaudited revenues of $4.0m. These revenues represent 32% growth over the first half of 2022. Cleaning applications generated 92% of first half revenues, indicating a 33% increase compared to the first half of 2022, driven by continued gains in North American and European detergent volumes. Overall gross profit margin exceeded that of the full year for 2022 due to higher product volumes and more stable raw material costs. Net unaudited cash was $11.2m. The Company is on track to meet market expectations for 2023. 

 

Loungers 190p  £197.0m (LGRS.L) 

The operator of all day café/bar/restaurants across the UK under the Lounge, Cosy Club and Brightside brands, announces its audited results for the 52 weeks ended 16 April 2023 (FY23). Revenue of £283.5m (up 19% vs FY22) and a record 29 new sites opened. Adjusted EBITDA of £47.3m, a decrease of 12% vs FY22 and operating profit of £14.8m declined by 48% vs FY22. The Company’s cash generated from operating activities stood at £51.1m (FY22: £69.6m). The Company has a strong pipeline of new sites with internal capacity developed to accelerate to 34 openings next year.  

 

Oncimmune Holdings 16.45p  £12.2m (ONC.L) 

The autoantibody profiling company to the pharmaceutical and biotechnology industry, announces changes to its leadership team and its Board of Directors. Dr Adam M Hill stepped down as the Company's Chief Executive Officer and as a director of the Company. Martin Gouldstone will be joining Oncimmune as its new Chief Executive Officer on 1 August 2023. Martin has over 25 years of experience in the life science sector, including senior commercial roles at a major CRO and most recently as Global Senior Vice President at Owkin Inc. Matthew Hall has decided to leave his Chief Financial Officer role at Oncimmune and has recruited Martin Hudson to a new role of Finance Director. Martin is a CIMA qualified finance professional with over 19 years' post-qualified international experience in large multinational and smaller entrepreneurial environments. 

 

RBG Holdings 31.25p  £29.8m (RBGP.L) 

The legal and professional services group, announces it has completed the disposal of LionFish Litigation Finance Limited (LionFish) to Blackmead Infrastructure Limited (Blackmead). The consideration for the disposal is up to £3.07m, comprising an immediate payment of £1.07m to be used for repayment of an intercompany loan, an additional payment of up to £2.0m, subject to performance conditions to be used to repay additional intercompany debt, and £1 for the entire share capital of LionFish.  The proceeds from the sale will be used for working capital purposes and to reduce net debt of the Group. 

 

Renold 29.1p  £65.6m (RNO.L) 

The international supplier of industrial chains and related power transmission products, announces its audited results for the year ended 31 March 2023. Revenue up 26.6% to £247.1m (2022: £195.2m) and adjusted operating profit of £24.2m (2022: £15.3m), up 58.2%. The Company announced net debt of £29.8m, £16.0m increase in the year, facilitating successful YUK acquisition. The Company won a long term £8.9m military contract, following a similar contract win of £11.0m in FY22. Acquisition of Industrias YUK S.A. in August 2022, for EUR24m, increases the Group's access to the Iberian Chain and wider European Conveyor Chain markets. YUK is performing ahead of expectations. 

 

Shoe Zone 252.5p  £116.7m (SHOE.L) 

The seller of a wide range of footwear for the whole family from over 380 stores nationwide and on their website announces a trading update. Trading has exceeded management expectations due to continued strong demand with volumes up double digit on last year, despite no price increases on our core ranges. The Company has also experienced margin improvements due to the lower container rates and favourable foreign exchange rates with management expecting these improved margins to continue for the rest of the financial year. As a result, the Company now expects adjusted profit before tax to be not less than £13.5m. 

 

Steppe Cement 32p  £70.1m (STCM.L) 

The cement manufacturer in Kazakhstan using the dry method which utilises less resources announces a market update for the first half of 2023. In the first half of 2023, Steppe the Company sold 749,034 tonnes of cement for 16,977m Tenge, compared with 837,063 tonnes of cement for 19,579m Tenge in the first half of 2022. The volume of sales and the turnover decreased by 11% and 13% respectively. Inflationary pressures have started to ease in June to 15% and the National Bank base rate stands at 16.75%. Cost of logistics, utilities and food items have experienced higher increases. This will be reflected in the overall cost of production of the factory. The cement market in Kazakhstan in the first half of 2023 reduced by 5.6% year on year. 

 

XLMedia 10.25p  £26.6m (XLM.L) 

A global digital media company, announces the sale of three of the Group's European Gaming domains and associated websites, Casino.se, Casino.gr, and Casino.pt for a total upfront cash consideration of $4.0m, representing a 4.7 times multiple on revenue. The assets relating to the Sale generated revenues of $840k, 6% of the Group's European Casino revenue, with a gross profit of approximately $750k. The cash generated from the Sale of these assets to Beach Services provides the Group with additional working capital and funds further investment to drive the expansion of XLMedia's North American Sports and Gaming footprint and advance its EU portfolio. 

 

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.