Dish of the day

Joiners: 

No joiners today. 

Leavers: 

Atlantis Japan Growth Fund shares have delisted following their merger with Nippon Active Value Fund

 

What’s cooking in the IPO kitchen?** 

Announced ITF 11 October: Cykel AI, the company developing artificial intelligence AI software designed and trained to execute commands in response to natural language directives, specifically within the realm of computer interfaces, intends to join the Access Segment of the AQSE Growth Market. Admission on or around 25 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 30 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.

 

Banquet Buffet*** 

Andrada Mining 6.15p  £95.3m (ATM.L) 

An African technology metals mining company with a portfolio of mining and exploration assets in Namibia, confirms the commencement of an initial exploration programme for the Brandberg West exploration licence. Commencement of an exploration programme at EPL5445 includes: 1) Evaluation of the polymetallic mineralisation of the historical opencast operation. 2) Investigation of the mineralised extensions beyond the previously mined site, and 3) Mobilisation of a planned 3,000 metre drill programme which is scheduled to commence during the second half of this calendar year. 

 

Brown (N) Group 19.38p  £89.8m (BWNG.L) 

A UK clothing & footwear digital retailer, with a home proposition announces its interim results for the half year ended 2 September 2023. Group revenue contracted 10.4% to £297.0m (H1 23: £331.5m), as a result adjusted EBITDA reduced 37.7% to £17.5m (H1 23: £27.9m). The Group made a marginal profit before tax of £0.1m (H1 23: £4.3m) and holds cash equivalents and total accessible liquidity of £133.1m. RCF and overdraft remain undrawn with limits of £75m and £12.5m respectively. FY24 Adjusted EBITDA expected to be in line with market expectations. 

 

Distil 0.45p  £3.1m (DIS.L) 

The owner of drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodkas announces its unaudited interim results for the six months ended 30 September 2023.  Turnover increased by 37% to £632k (2022: £460k), as a result gross profit increased by 35% to £283k (2022: £210k). Loss before tax decreased by 43% to £314k (2022: £555k) and the Company held cash reserves at period end of £321k. The Company also announced their launch of RedLeg ecommerce site which is driving brand visibility and a new revenue stream. The Company are confident that they will continue to build within both UK on trade and export markets. 

 

Hotel Chocolat Group 137.5p £189.1m (HOTC.L) 

A direct-to-consumer premium chocolate company, announces its audited full year results for the 53 weeks ended 2 July 2023 (FY23). Revenue declined by 10% to £204.5m (FY22: £226.1m), as a result, underlying EBITDA decreased 41% to £24.1m (FY22: £40.8m). Underlying loss before tax  and exceptional costs of £0.8m (FY22: Profit before tax and exceptional costs of £21.7m), and the Company held cash and cash equivalents at period end of £11.1m. Post period, the Company opened 4 of a planned 12 new stores and is currently trading in line with expectations. 

 

Karelian Diamond Resources 3.75p  £3.5m (KDR.L) 

The diamond and base metals exploration and development company focused on Finland and Ireland announces results from a stream sampling progamme in Northern Ireland. The Company confirms the prospectivity of the Company's licence area for nickel, copper and platinum group metals. Thirty three stream sediment samples, with an average weight of circa 18kg per sample, were collected across an area totalling 750 km2. The area has yielded five samples each having over 1,000 indicator minerals primarily comprised of Chromite and Forsterite with some Chalcopyrite and gold grains. The Company is planning a follow up programme focused on the highly anomalous river catchment area, together with some additional microprobe analysis. 

 

Kore Potash 0.58p  £20.6m (KP2.L) 

The potash development company with 97%-ownership of the Kola Potash Project and Dougou Extension Potash Project in the Republic of Congo (RoC), provides its quarterly update for the period ended 30 September 2023. The Company  has signed a revised agreement with SEPCO Electrical Power Construction Corporation to provide the Company with engineering procurement and constructive contract for the construction of Kola. PowerChina International Group Limited has also commenced work in the RoC to support the provision of guarantees regarding an EPC contract for Kola. The company has also completed a US$1.0m fundraise and holds US$1.1m in cash. 

 

Marks Electrical Group 104p  £109.1m (MRK.L) 

A online electrical retailer, provides the following trading update for the six months ended 30 September 2023 (HY24). Reported revenue growth of 24.8% to £53.9m (HY23 £43.1m), and growth in their next-day service offerings with integrated, gas, electric and television installation services achieving over 7,000 installation orders in the first half, (HY23: 2,500). The Company has invested £1.2m in their vehicle fleet and distribution centre, improving their capacity and training facilities, and has a net cash position of £10.9m (HY23: £7.7m). The Company look forward to achieving their full year targets. 

 

Norman Broadbent 6.25p  £3.9m (NBB.L) 

A executive search and interim management firm offering a portfolio of integrated leadership acquisition & advisory services, announces its Quarter 3 2023 trading update. Revenue of £3.2m, up 60% over the same period in 2022 (Q3 2022: £2.0m), as a result, net fee income (NFI) of £2.8m up 65% (Q3 2022: £1.7m) and Q3 year to date NFI of £7.9m, up 58%. The Company further announces that its pipeline of contracted revenue at the end of Q3 2023 is £2.1m, up 62% on the previous year. 

 

Shield Therapeutics 6.05p  £47.3m (STX.L) 

A commercial stage, pharmaceutical company with a focus on addressing iron deficiency with its lead product Accrufer®/ Feraccru® (ferric maltol), announces that Hans-Peter Rudolf is standing down from his role as Chief Financial Officer (CFO) of the Group as of 20 October 2023 to pursue other opportunities. Shield also announces that Paul Spoors, Group Company Controller, will assume additional responsibility and report directly to the Shield's Chief Executive Officer. 

 

Windward 72.5p  £62.1m (WNWD.L) 

The maritime AI company, announces a number of contract wins and renewals in H2 2023. The Company announced that it has won two additional US government customers with no customer churn. The rest of the world Government segment has also performed strongly, with four new contracts.  Furthermore, the renewal of the contract with the Nigerian government has taken place, adding $1m of ACV per year over three years. The Company confirms it is trading comfortably in line with market expectations for the year to 31 December 2023.  

 

* 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.