Vox Markets Logo

Hybridan Small Cap Feast: 17/04/2024

12:21, 17th April 2024

* A corporate client of Hybridan LLP

** Arranged by type of listing and date of announcement

*** Alphabetically arranged

**** Potential means Intention to Float (ITF) has been announced



Dish of the day








What’s baking in the oven? **



Potential****  Initial Public Offerings:


Reverse Takeovers:

16 April 2024: Electric Guitar (ELEG.L) Follow | ELEG Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for a consideration of approximately £1.3m, payable by the issue of new ordinary shares in Electric Guitar. The Acquisition constitutes a reverse takeover under the Listing Rules and therefore shareholder approval for the Acquisition is being sought at a general meeting of Electric Guitar to be convened for 1 May 2024.


17 April 2024: TGI Fridays, Inc. (TGIF) Follow | TGIF Hostmore plc announces that it has reached agreement on a non-binding basis for a proposed all-share acquisition of TGI Fridays, Inc. The Proposed Transaction would result in existing Hostmore shareholders holding 36% of the enlarged business upon completion (the Combined Group), with TGI Fridays shareholders holding a 64% shareholding. TGI Fridays is expected to be purchased for an enterprise value of £177m, or approximately 5.4x its FY23 underlying EBITDA. The Combined Group is expected to be renamed TGI Fridays plc, with its shares admitted to trading on the LSE’s Main Market. Completion of the Proposed Transaction expected to be by the end of Q3 2024. 


Change of Market:

8 April 2024: TheWorks (WRKS.L) Follow | WRKS a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated proposition as a value alternative to full price specialist retailers. The Company is listed on the premium segment of the Main market of the London Stock Exchange. The Company has announced its intention to change to the AIM  market on 3 May 2024. Currently the market capitalisation of TheWorks is £16m.



 Banquet Buffet***


Asiamet Resources  0.675p £17.5m (ARR.L) Follow | ARR

The exploration and development Company with a portfolio of copper-gold and polymetallic deposits reports the results of recent grab samples collected during due diligence site visits to the BKM project area in Central Kalimantan, Indonesia (BKM), within the KSK licence area. Rock Sample Results: two samples collected from surface in the central area of the BKM deposit, assayed 24.0% and 23.3% Copper. Two additional samples collected from an outcrop of the nearby BKZ deposit assayed 7.20% Zn, 5.60% Pb, 74g/t Ag, 0.21% Cu, 0.16g/t Au and 25.6% Zinc, 16.1% Lead, 75g/t Ag, 0.43% Cu and 0.57g/t Ag. These high-grade results are consistent with previous surface sampling and reinforce the upside potential of both the BKM and BKZ deposits.


Corero Network Security 11.75p £59.8m (CNS.L) Follow | CNS

The specialists in distributed denial of service (DDoS) protection solutions announces the appointment of Robert Scott as a NED of the Company with immediate effect. Based in the USA, Robert is a 30-year network security industry professional and is currently the Chief Strategy Officer of Silversky, Inc., a provider of cybersecurity managed services, alongside serving as the Chairman of AssetPass, a disruptive fintech startup. Rob is also on the Customer Advisory Board of Fortinet, a global leader in cybersecurity.


Crimson Tide 160p  £10.5m (TIDE.L) Follow | TIDE

The provider of the process management app mpro5, announces its unaudited results for the year ended 31 December 2023.  Revenue grew 15% to £6.2m (2022: £5.4m), operating profit increased by £0.8m to £0.4m (2022: £0.4m loss) and cash at the year-end amounted to £3.3m (2022: £3.6m). Annual Recurring Revenue (ARR) was stable at £5.8m, despite unavoidable churn. Crimson Tide's ARR contracts are typically on an initial 36-month subscription basis, with many extending and expanding significantly beyond the initial contracted date. Meanwhile, Philip Meyers will join the Board as CEO. He joined Crimson Tide in August 2023 as Chief Operating Officer. 


Eckoh 40p £116.2m (ECK.L) Follow | ECK

The global provider of Customer Engagement Data Security Solutions announces that its core cloud platforms already operate across multiple regions with a further seven regional Points of Presence recently launched. This includes Eckoh's first dedicated Asia Pacific Secure Voice Cloud platform launched in Sydney. This ongoing expansion is vital to ensure Eckoh can service the growing demand of its global customers. In the last 3 years, Eckoh has seen the share of annual recurring revenue from cloud triple in the key North American market. The global cloud-based contact centre market is estimated to be growing from $17.1bn to $54.7bn in in the five years to 2027 - a compound rate of about 26% a year, according to Global Forecast to 2027 Markets and Markets.


INSPECS Group 49.5p £50.3m (SPEC.L) Follow | SPEC

The designer, manufacturer, and distributor of eyewear announces its final results for the year ended 31 December 2023. Revenue was £203.3m (2022: £201.0m), the gross profit was up 4.7% to £103.5m (2022: £98.9m) and adjusted Underlying EBITDA increased by 16.1% to £18.0m (2022: £15.5m).  The net debt excluding leasing was reduced by £3.4m to £24.2m (2022: £27.6m), and cash flows from operating activities increased by £7.0m to £16.9m (2022: £9.9m). After a disappointing end to 2023 and a slow start to 2024, the recent trend has been more encouraging. Current momentum in the business supports delivery of market expectations for 2024.


Safestay 19p £12.3m (SSTY.L) Follow | SSTY

The owner and operator of an international brand of contemporary hostels announces that it has signed its first management contract to run the resort-based 120-bed Calpe Seafront Hostel on Spain's Costa Blanca on behalf of a property investment company. Under the management contract, Safestay will receive a fixed management fee plus a percentage of revenue and profits above certain levels. The Calpe Hostel will be Safestay's fourth Spanish based hostel and eighteenth hostel overall.


Serabi Gold  64p £48.5m (SRB.L) Follow | SRB

The gold mining Company with production in Brazil announces its first quarter operational results for FY2024. The gold production in the first quarter was 9,007 ounces, a 12.5% improvement on Q1-FY23 and the highest quarterly total reported since 2021. Coringa contributed 3,871 ounces of gold production at mined grades of 6.39 g/t gold and the Palito plant processed a record quarterly total of over 54,000 tonnes of ore. The cash held on 31 March was $11.1m, with a further $1.1m owed for sales made in Q1. The Company is reiterating FY24 consolidated gold production guidance of 38,000 – 40,000 ounces.    


Surface Transforms 3.95p £13.9m (SCE.L) Follow | SCE

The manufacturer of carbon fibre reinforced ceramic disc brake materials provides the guidance for 2024. FY24 sales are anticipated to be in the range of £17.5m to £22m, up by 111%-165% from FY23 sales of £8.3m. With the majority of the year still to come, 2024 sales outlook is dependent on the amount of progress made on reducing scrap, building capacity and delivering to customers.  Sales were constrained in Q1 due primarily to scrap and constrained manufacturing capacity.  Significant progress has been made on reducing scrap and this is expected to continue through 2024. 


Synectics 187.5p £33.4m (SNX.L) Follow | SNX

The leader in advanced security and surveillance systems announces that it has been awarded an £800,000 contract with a new customer - a major UK utility provider - to deliver a multi-site deployment of the Company's proprietary software platform, Synergy.  The contract will be deployed in the Company's current financial year and will help this new customer to streamline and optimise their command and control functionality.


Touchstar 86.5p £7.1m (TST.L) Follow | TST

The suppliers of mobile data computing solutions and managed services announces its results for the year ended 31 December 2023. Revenue was £7.2m, up 7.1% driven by recurring revenue growth of 8.7%, the  profit after tax was £0.64m, up 14.5% year-on-year, and the year-end cash was £3.0m (FY22: £3.4m). The Board recommends  a final ordinary dividend of 1.5p per share (FY22: nil) and its expectation for growth in  2024 remains unchanged.




 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.


Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Recent Articles