Price weakness presents buying opportunity

Hybridan Small Cap Feast - 25 June 2024

25th June 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, or it is a rumour Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 19 June 2024: IntelliAM, an artificial intelligence company focused on the consumer goods industry, is preparing to list on the Aquis Exchange on 3 July. T

PROGRESSIVE: IG Design Group: Foundations laid for the transition to a profitable growth strategy

IG Design’s FY24 results confirmed another year of significant progress in the second year of its three-year turnaround journey, notwithstanding ongoing macroeconomic challenges. The scene is now set for a transition to top-line revenue growth supporting further leverage of profitability and margins. This move is embodied in the relaunch of the group’s purpose, vision and mission statements, to support execution of the growth strategy launched in the year.

Pivoting for growth

PROGRESSIVE: IG Design Group: FY24 results well ahead of expectations – on course to hit operating margin target for FY25E

IG Design Group’s trading update for the year ended 31 March 2024 has exceeded market expectations in terms of both profitability and, most significantly, cash generation. The FY24 results confirm the progress the group has made on its strategic journey to simplify the business and improve operational efficiency. Notwithstanding ongoing uncertainty on the economic backdrop and consumer expenditure, the group remains confident of delivering its target of returning to its pre-Covid adjusted operat

FY24E margin, profit and cash beat, FY25E on track

Time to focus on growth ambitions

PROGRESSIVE: IG Design Group: Strong profit growth, key strategy initiatives and quantified aspirations

IG Design Group delivered a 27% increase in adjusted PBT to $34.8m for H1 FY24 (to 30 September) with a significant reduction in net debt to $15.1m, as signposted in last month’s trading update. The adjusted operating profit margin was some 270bps higher at 8.6% (vs 5.9% in H1 FY23), the highest achieved since H1 FY20 ahead of the CSS acquisition. Management has provided more details on the key attributes and initiatives for its new growth-focused strategy. The group is on track to return to pre

Strong H124 profitability and growth plan ambitions

Hybridan Small Cap Feast 25-10-2023

Dish of the day Joiners: Cykel AI has joined the Access Segment of the AQSE Growth Market today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** 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. Tekcapital announ

PROGRESSIVE: IG Design Group: H1 trading sees significant net debt reduction and profit growth despite lower sales

IG Design Group has delivered substantial growth for the H1 trading period (to 30 September) in terms of key profit measures and margins, together with strong cash flow and net debt reduction, both of which exceeded management expectations. These achievements have been attained despite lower sales compared to H1 FY23, with the adjusted operating profit margin in H1 FY24E therefore set to surpass last year’s 5.9%. As such, the overall results clearly show the ongoing benefits of the group’s strat

Improved H1 profitability - FY24 on track

Surface Transforms (SCE LN) - FY guidance confirmed, weighted to H2

Surface Transforms has issued a brief pre close trading update for H1. Full year revenue guidance of £17.5m has been confirmed but, as we expected, this is significantly weighted to H2. Sales in H1 were £4.6m but excluded preproduction engineering revenue which will now be recognised in H2. The current brake disc manufacturing run-rate is significantly higher than earlier in the year and is now meeting customer expectations. We understand that factory capacity is increasing and risks from single

Spectra Systems - Banknote Conference 2024 – significant interest in SPSY polymer

Last week's global Banknote Conference 2024, taking place in Forth Worth, Texas, was a near-perfect sales opportunity for Spectra (SPSY) given (1) an exceptionally strong new product to offer in the banknote arena, (2) an expanded and highly experienced sales team post the recent Cartor acquisition and (3) patent appetite among the Central Bank client base for a new polymer substrate supplier in this market. Spectra, a leader in machine-readable high-speed banknote authentication and brand prote

Gooch & Housego (GHH LN) - Progress being made but more to do

Gooch has reported in-line first half earnings. Trading has started to recover with stock levels normalising at industrial and medical devices customers.

Spectra Systems (SPSY LN) - Sensor contract drives double-digit upgrades

Today’s announcement from SPSY confirming a major new contract with a significant existing central banking customer (partly anticipated in our forecasts) provides further affirmation of the company’s strong technology and close relationships with globally prominent clients. While foreshadowed in earlier announcements, the sensor contract is, however, expected to be considerably more profitable in its totality than previously anticipated. SPSY is an established world leader in providing security

Nexteq - Strong cash in a challenging H1, board transition

Nexteq’s H1 24 trading update shows revenue growth of -15% yoy to $48.2m, the outlook states that FY24E revenue and adjusted PBT are expected to be 15-20% and 30-40% below previous market expectations respectively, and separately the Chair, CEO, and CFO will step down from the Board in the coming year. As highlighted at FY23 results in March, H1 revenue has been impacted by softer customer demand across both divisions due to industry de-stocking, and there has then been an incremental impact fro

VNCE: Snapping the Store: Pre-Fall Continues to Impress; Reiterate Buy, $3 PT

We are reiterating our Buy rating, projections and $3 price target for Vince after visiting stores in Long Island, Connecticut and New Jersey. We believe the company continues to roll out winning collections, with a focus on compelling hues (dark scarlet and blue waltz), new items (cargo pants, shrunken camisoles, silk hooded shirts and cardigan sweaters) and a deeper focus on key categories such as dresses. Further, we are also seeing continued newness and expansion in men's, driven by jackets

Softer consumer sentiment weighs on current trading

Burberry published a slightly better-than-expected first half performance but warned that the slowdown in luxury demand across the globe has started to weigh on its business. The group said that it is unlikely to achieve its guidance for FY23/24 if the weaker demand persists.

Allenby Capital - Spectra Systems - Update

Manufacturing contract margins for the third generation of sensors for Spectra’s longstanding central bank customer are significantly higher than originally anticipated and result in major profit upgrades for FY24 and FY25. The contract is worth an initial $37.9m with a further $1.7m expected later this year. Spectra, the leader in machine-readable high speed bank note authentication, brand protection technologies, security printing and gaming software, would also expect to secure a multi-year s

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Hybridan Small Cap Feast 07/07/23

Joiners: No joiners today. Leavers: Medica Group plc has left the Premium Segment of the Main Market. What’s cooking in the IPO kitchen?** 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 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 resou

Encouraging start to the year

Burberry released a start to the year bang in line with the market’s expectations. The recovery in the Chinese market and the lifting of the last travel restrictions in Asia resulted in significant sales growth in Asia Pacific, partially offset by the ongoing slowdown in the Americas. The ongoing recovery in Asian travel retail and the arrival of the new Daniel Lee collection in stores at the end of the second quarter will drive growth for the rest of the year.

Quartix Technologies - FY23 adj EBITDA +10% ahead, FY24E forecasts reiterated

Quartix’s FY23 results show FY23 revenue growth of +9% to £29.9m, adjusted EBITDA +10% ahead of the January trading update at £5.4m, and a confident FY24 outlook that leads us to conservatively reiterate our FY24E forecasts. Core Fleet revenue grew +11% to £29.5m, with recurring revenue +9% to £27.8m or 93% of group revenue, and ARR increased +£2.2m at constant currency to £29.1m. By region, France and the new European territories delivered an excellent performance with FY23 revenue growth of +2