Dish of the day

Joiners: 

Tan Delta Systems plc (TAND.L) has joined AIM. The Company has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to reduce maintenance costs, improve reliability and reduce carbon footprint. The market capitalisation will be approx £19m after raising circa £6m at IPO at 26p. YE December 2022, the Company reported revenues of £1.575m with a net profit of £282k.  

Leavers: 

Kingspan Group Plc (KGP.L) has left the Premium Segment of the London Stock Exchange. 

 

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. 

 

Announced ITF 6 July: 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. Admission delayed.

 

Banquet Buffet*** 

Agriterra 1.35p  £1.0m (AGTA.L) 

The African agricultural company announces that it has concluded a trade finance package with Magister Investments Limited (Magister), the Company's 50.58% shareholder, which will: 1) reduce the finance costs associated with maize purchasing in Mozambique by the Company's wholly owned subsidiary, Desenvolvemento E Comercializacao Agricola, Limitada (DECA); 2) facilitate the purchase by DECA of various capital equipment which will be employed by its operations in Mozambique to drive growth and 3) enable the Group to replace the external finance provided by First Capital Bank, S.A. announced on 14 June 2023. Agriterra has today secured new debt funding from Magister, in an aggregate amount of US$2.9m together with an extension to the US$1.8m convertible loan facility provided by Magister as announced on 29 July 2022. The Group thank Magistra for their continued support in providing the new financing facility. 

 

Alien Metals 0.19p  £10.1m (UFO.L) 

A minerals exploration and development company announces that following the successful raising and placing of £2m, it has issued notice to the Lender (Bennelong Limited) of its short-term funding facility that it will not be drawing on the Tranche 2 (US$500k) of the Convertible Securities. Accordingly, the Lender holds in total US$500k of Convertible Securities in respect of Tranche 1. The Company successfully raised £2m through a placing announced last week to help advance the Hancock Project and Pinderi Hills. 

 

Beacon Energy 0.143p  £15.0m (BCE.L) 

The full-cycle oil and gas company with a portfolio of production, development, appraisal and exploration onshore German assets through its wholly-owned subsidiary, Rhein Petroleum GmbH, announces an update on the Schwarzbach-2(2.) (SCHB-2(2.)) well. The SCHB-2(2.) well has encountered good quality oil-bearing reservoirs in the Meletta-Schichten (Meletta) sandstones and the Pechelbronner-Schichten (PBS) sandstones. Initial evaluation PBS indicates a 34-metre gross interval containing 28 metres of oil-bearing net reservoir, with porosities averaging 18% and up to 28%, all of which exceed pre-drill estimates. The operating team will now undertake reservoir clean-up, production testing and install the production liner to bring the SCHB-2(2.) well into production, expected over the next month. 

 

Everyman Media Group 60p  £54.7m (EMAN.L) 

A independent cinema group in the UK provides the following trading update for the 26 weeks ending 29 June 2023. Group revenue came in at £38.3m (2022: £40.7m) against a strong H1 2022 comparator; the majority being generated in H2 2023 owing to key 2023 releases. Group EBITDA of £5.8m (2022: £7.5m), and three new venues opened at the end of H1, take the Group estate to a total of 41 venues. Barbie and Oppenheimer released in the final week of July, delivered sole revenues of £10.6m and EBITDA of 2.6m. Trading continues to be in line with expectations and the Board remains confident for the full year that it will be in line with market expectations. 

 

Loungers 187.5p  £194.4m (LGRS.L) 

The operator of all-day café/bar/restaurants across the UK under the Lounge, Cosy Club and Brightside brands, has announced the appointment of Lucy Knowles as Managing Director of its Cosy Club brand. Lucy  was previously Managing Director of London-based bar chain, Corney & Barrow, later joining SSP as Group Marketing Director. Lucy led brand and menu innovation for over 150 brands and she will join Loungers in September. 

 

Marula Mining 15,5p  £20.18m (AQSE: MARU) 

An African focused mining and development company provides an update on the Kinusi Copper Mine (Project). The Phase 1 Program of exploration activities completed by the Company’s geological consultants, Geofields Tanzania Limited (Geofields) in Q2 2023 announce preliminary findings of a copper mineralised corridor at Kinusi extending for over 1km length and over 300m in width at the main Sasimo Prospect and suggest visible copper grades of up to 30%. Geofields have estimated an initial Exploration Target of 10-15m tonnes (Mt) deposit of high-grade copper, gold, and other base metals, with the potential to increase in excess of 50Mt on completion of definitive resource drilling programs. The Phase II program will be undertaken to increase the geological confidence and knowledge at Kinusi. 

 

Plant Health Care 10.1p  £34.4m (PHC.L) 

A provider of novel patent-protected biological products to global agriculture markets announces that its biochemical fungicide, PHC279, for the control of sugar cane and coffee disease has received federal approval in Brazil. PHC279 is the active ingredient in the Company's product Saori, which is successfully being used in Brazil as a seed treatment for the control of soybean diseases. Derived from natural proteins, PREtec is an environmentally friendly technology which stimulates crop growth, enhances the ability to withstand a variety of abiotic stresses, improves disease control, plant health and yield. The Company is on track to achieve revenue of $30m by 2025 through the launch of new products and organic business growth. 

 

Smarttech247 32.5p  £40.3m (S247.L) 

A provider of AI-enhanced cybersecurity services providing automated managed detection and response for a portfolio of international clients announces that it has received approval for its VisionX platform to be listed on the Amazon Web Services (AWS) Marketplace. VisionX is Smarttech247's managed detection and response platform which provides around-the-clock security, rapid incident response, and monitoring capabilities using AI in tandem with human led monitoring. The Company mention that listing on the AWS Marketplace enables exposure to a large customer base, streamlined purchasing processes, and scalability. 

 

Southern Energy Corporation 22.5p  £30.8m (SOUC.L) 

An established producer with natural gas and light oil assets in Mississippi announces its second quarter financial and operating results for the three and six months ended June 30, 2023. The Company generated $0.2m of adjusted funds flow from operations in Q2 2023, excluding $0.5m of one-time transaction costs and general and administrative costs, a net loss of $3.8m in Q2 2023 (Q2 2022: net earnings of $2.8m) and petroleum and natural gas sales of $3.7m in Q2 2023. The Q2 2023 average production was 15,907 Mcfe/d (2,651 boe/d) (96% natural gas); an increase of 12% from Q2 2022. The Company remains committed to reaching its goal of 25,000 boe/d. 

 

Upland Resources  2.4p  £26.4m (UPL.L) 

The oil and gas company actively building a portfolio of attractive upstream assets announces that, through its collaborative discussions with the Petroleum Authority of Brunei Darussalam, the Company has recently been advised that gas was discovered in two previously unknown reservoirs in the neighbouring block in Brunei, which is located close to, and has a similar geological context to prospective areas in Block SK334. High pressure, material gas discovery where gas flared at surface level with further additional formations are yet to be tested. This is a significant derisking of  future exploration and significantly enhances prospectivity in Block SK334. 

 

* 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.