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Xeros's FY24 results were in line with expectations, with falling revenue offset by effective cost cuts leading to a slight decline in operating loss and adequate net cash. However, operational achievements provide stronger long-term value indication, with the Group reaching a clear inflection point as customers across all divisions confirm pre-commercialisation orders. In Filtration, the Group secured Russell Hobbs as its first partner brand in XF3 pilot production, with this household name potentially accelerating market adoption and scalability. In Care, IFB finalised its first XOrbs purchase order – the final step before launching the first XOrb FABRIC CARE-enabled domestic machine, on track for Indian release in 2025. In Finish, the Group confirmed the previously delayed first Yilmak XOrb order. Beyond commercialisation, the Group has effectively filled its early development pipeline, with growing demand enabling more selective management and transition to ‘paid for verification’. We believe commercial success across all divisions will establish valuable case studies, accelerating customer progression from verification to commercialisation, whilst also attracting more potential verification customers. We leave our forecasts and price target unchanged.
Xeros Technology Group Plc
Friday Takeaway—delving a little deeper into UK small caps Friday Takeaway from UK Small Caps This will delve a little deeper on individual companies and focus on non-house stocks under £200m market capitalisation to help raise awareness 7 January 2025 Alphabetically arranged Share prices and market capitalisations taken from the current price on the day of publication Trading updates expose the underlying growth opportunities of these two companies SSTY Hostile Discount XSG Time to Deliver Safestay 23.5p £15.26m (SSTY.L) Financial Calander: Year End December, Report March, Interims September Three Largest Shareholders: Pyrrho Investment 29.30%, BGF Investment Management Ltd 18.16%, Cheverton Asset Management 6.72% Key Investment Points: Good Operators, Efficient use of Capital, 53% Discount to NAV The European Hostel Group’s Trading Update for the Y/E December 2024 showed revenue growth of 2% to £23.5m, with a slightly lower EBITDA of £6.5m from £6.8m. Its vision is to build a branded network of hostels that blends comfort, affordability, and camaraderie. Its forward Bookings are 27% higher at £4.7m and occupancy rates continued to strengthen to 75.2%, which is a 3.8% increase year on year. In early January as part of the multi-year partnership, Safestay moved its 20-strong Europe-wide hostel portfolio of 4,000+ beds onto the Cloudbeds Enterprise Platform which is expected to drive financial and operational efficiencies. The Average Bed Rate of £21.40 decreased 10% in line with broader pricing pressure. This was however almost made up through a KPI of revenue per available bed, which remained robust at £18.56 reflecting success in driving overall revenue per guest with ancillary services, mainly food & beverage sales which increased 26% during the year. Its Debt has been refinanced with HSBC to a £16m five-year Term loan with a £2.5m Revolving Credit Facility. The interims reported a 17.2% increase in net asset value per share to 49.8p. The fragmented and growing global hostel market is expected to be worth $8.9bn annually by 2027. During FY24, the portfolio was expanded, with new properties in popular European travel locations (Costa Blanca and Cordoba; Brighton; and Budapest). A new hostel was opened in Edinburgh following the acquisition of the site in 2023. It will continue to actively appraise expansion opportunities across both existing and new markets, including acquisitions as well as less capital-intensive routes to market such as franchising partnerships and management contracts. Hybridan Comment: The brand/asset building journey started in 2011 and we imagine that there might in the future be an opportunity to sell the Company to a larger leisure business at a premium to NAV. In the meantime, we believe that business is set to improve. Xeros Technology Group 0.78p £3.64m (XSG.L) Financial Calander Year End December, Report May, Interims September Three Largest Shareholders Amati Global Investors 12.80%, First Equity 10.14%, Lombard Odier Investment Managers 7.79% Key Investment Points Operationally leveraged, New Income stream, Licensing agreement momentum Xeros has developed patented technologies which are proven to reduce environmental impact by conserving water and preventing waste, while increasing efficiency for clothing manufacturing and support industries. There are three main technologies, Filtration, Finish, and Care, to facilitate garment manufacturers, industrial laundries, domestic washing machine manufacturers and consumers. Although it’s at an early commercialisation stage the addressable market is a combined £3.5bn per annum. Xeros Technology’s licensing model will be highly scalable, as incremental sales from generating royalties has few extra costs. The trading update for Y/E December 2024 reported that due to timing differences, revenue will be below expectations and the interim turnover was £79k. Costs have been reduced to approximately £291k per month as management continues to focus on operating disciplines. The revenue break-even point is approximately £4-4.5m and once reached increased revenues almost fall straight to profits, according to the Company’s statement. Xeros’ proprietary Fabric Care technology ‘Xorbs’ are mechanically fitted to washing machines with a device that functions by reusing the ‘Xorbs’ so that less water is needed to clean the clothes. As a consequence of this, and in tests, this shows that clothes fade less. The system is to be licensed to commercial and domestic washing machine manufactures. Until recently, the Company did not receive any payment for manufacturer trials, but has entered a paid-for technical verification process with a leading global washing machine brand which would aim towards a commercial launch in 2026. Other OEM trials are nearing final evaluation, potentially leading to licensing agreements. There is hope that an existing licence deal with an Indian OEM may pay fees this year. Generally, regulators are exerting pressure on industries to reduce their environmental impact, with legislative action beginning to be taken. Its micro pollution filter device removes 99% of microplastics from wastewater. In September, Donlim, the owner of the worldwide Morphy Richards brand, agreed a licence to manufacture and distribute the XF1 filter. Its mass production is targeted for Q2 FY25. Donlim will pay Xeros a licence fee for every unit sold. There is a newly signed Letter of Intent with a major electronics distributor for an initial order for the XF3 external microfibre plug and go filter and sales are expected to start towards the end 2025. There are currently eight licensing and partner agreements in commercialisation progress which in time could make meaningful revenue. The current year to December 2025 revenue expectations is for £2.5m. After the £4.6m funding in April 2024 at 1.5p, the Y/E net cash was £2.8m, which management is confident will be sufficient to reach month-on-month cash flow break-even. Hybridan Comment: Licensing revenues from manufacturers are slow to build and hard to predict. Management is confident that it is funded for 2025, so we can assume that there is at least a 9-month cash runway, in which to build meaningful revenues from this large addressable market opportunity. Once passed the break-even point, stated by management to be in 2026, operational leverage should attractively accelerate profit growth given that the business is based on a licensing model in which growth can be exponential. Jon Levinson MBA jon.levinson@hybridan.com If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Status of this Note and Disclaimer This document has been provided as a general market commentary and is issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as investment advice; a recommendation; an offer to sell; nor 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. The information has been provided without taking into account the investment objective, financial situation or needs of any particular person. 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Xeros Technology Group Plc Safestay Plc
* A corporate client of Hybridan LLP ** Potential means Intention to Float (ITF) has been announced, or it is a rumour ***Arranged by type of listing and date of announcement ****Alphabetically arranged Share prices and market capitalisations taken from the current price on the day of publication Dish of the day Admissions: Today: RC Fornax (RCFX.L), the UK-based engineering consultancy for critical military platforms, announced its First Day of Dealings onto the AIM market. The Company was founded in 2020 by Paul Reeves and Daniel Clark, two Royal Air Force veterans with a combined service of over 24 years. The Company generated revenue of £6.5m in 2024, resulting in £0.9m of EBITDA. The Company raised gross proceeds of approximately £5.15m for the Company, and approximately £1m for certain selling shareholders, in each case at a price of 32.50p. At the Issue Price, the Company will have a market capitalisation on Admission of approximately £18.15m. On Tuesday 4th, yesterday, International Paper Company (IPC.L) listed on the Main Market. International Paper Company produces and sells renewable fibre-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company was founded in 1898 and is headquartered in Memphis, Tennessee. International Paper Company is already listed on NYSE. IPC recently acquired UK company DS Smith (SMDS.L) which delisted on the same day. Delistings: On Tuesday 4th, yesterday, DS Smith (SMDS.L) delisted from trading on the Main Market and was acquired by the above mentioned Company International Paper Company (IPC.L), which separately listed on the Main Market. What’s baking in the oven? Potential** Initial Public Offerings: Banquet Buffet**** Aptitude Software Group 335p £177.71m (APTD.L) The provider of finance transformation software solutions, specialising in fully autonomous finance provided an update for Y/E December 2024, which are to be reported on 26th March. Revenue and profits are in line with expectations and it is advancing in its strategic goals. Its Annual Recurring Revenue (ARR) for its AI Autonomous Finance solutions grew 12% year-on-year to £17.1m. Selected wins include a US-based insurance brokerage, a leading interactive entertainment provider, a global insurer operating across over 50 countries, and a major contract win with one of Australia's largest financial services groups. Additionally, it continued its expansion with the Aptitude Accounting Hub and Fynapse through a Big-4 accountancy firm's managed service. The Group's balance sheet remains strong with net funds of £20.3m reflecting the strong underlying cash generation which is funding dividends and the share buy-back program. The new year has started well, with a £5.7m contract from a Top 10 US Health Insurer. The business is in a materially improved position compared to last year. B90 Holdings 3.05p £13.44m (B90.L) The online gaming industry marketing company specialising in customer acquisition reported a trading update, yesterday for its Y/E December 2024. Trading in Q4 continued well and EBITDA remained positive for every month of 2024, so it expects to at least meet market expectations. The continued shift to a B2B-focused model in H2 2024 has proven instrumental in driving increased EBITDA. Building on this momentum, continuing organic growth is anticipated this year. It is underpinned by the streamlined operational model and innovative marketing initiatives. This is successfully driving customer acquisition and positive results for its 200+ partners which include Bet365 and Stake.com. The focus remains on organic growth and the CEO states that B90 is stronger, more innovative and is delivering short term results as well as being positioned for long-term success. Dillistone Group 6.88p £1.4m (DSG.L) The software and services provider for recruiters made a Trading update for the Y/E December 2024. These show continuing progress, with profit measures comfortably in line with expectations, and a significant improvement in operating results from last year. This is despite a challenging business climate. The improvement is being led by Talent, its executive search software which saw a significant increase in demand that is continuing into 2025. The new AI driven Interview Simulation platform was launched in November and is already generating revenue. DSG reports being back to operationally cash generative and continue to paydown its Covid era CBIL loan in line with schedule. Made Tech Group 32.25p £41.43m (MTEC.L) The provider of digital, data, and technology services to the UK public sector reports interims to November 2024. Revenue increased 14% to £21.8m, with a PBT of £0.4m compared to a prior period loss of £1.0m. Its gross profit margin increased a little to 35.8% while EBITDA improved 29% to £1.8m. The Government’s strategic drive to use technology to transform public services in an agile and cost-effective manner means that Made Tech is well placed to deliver long term growth. There was a 233% jump in Sales Bookings to £42m, with a 44% increase in the contracted backlog to £80.8m. Net cash is £9.1m and the Company is on track to deliver positive free cash flow. The CEO expects double-digit revenue growth in FY25 and reports the business is in great shape to benefit from the public sector digitalisation programmes. Pressure Technologies 34.50p £14.89m (PRES.L) The specialist engineering group reports its finals to September 2024. A significant change has been made following the sale of the PMC division for £6.2m which was completed at the end of FY24. The ongoing business is Chesterfield Special Cylinders (CSC). Trading across the two divisions was mixed, with PMC reporting a strong financial performance, while CSC was impacted by operational delays and delayed order placement. Revenue of £14.8m were weaker than expected, although deferred revenues are in the current year. Last year its defence revenues passed the peak activity on a high-value UK defence contract. There was a recent agreement for a strategically significant new order for supplier qualification and delivery to the US naval submarine programme. This key milestone highlights CSC's global credentials and opens new market opportunities. Significant revenue growth is expected in FY25, with a return to Adjusted EBITDA profitability for the full year after central costs. The Company’s name is to be changed to Chesterfield Special Cylinders Holdings (CSC.L) at the AGM in March 2025. Shield Therapeutics 3.35p £29.69m (STX.L) The commercial stage pharmaceutical Company specialising in iron deficiency provides a trading update for Y/E December 2024. Net cash was $6.5m at the Y/E with an additional $10.0m received post year end. Shield's rate of cash burn remains highly dependent on the rate of sales growth for ACCRUFeR . In Q4, it grew strongly with a 56% increase in revenue to $11.2m as the average net selling price increased to $237 from $167 in Q3. A significant step-up in revenue, alongside successfully streamlining the cost base should be sufficient capital to become cash flow positive in 2025. Surface Transforms 0.31p £4.10m (SCE.L) Manufacturers of carbon fibre reinforced ceramic automotive brake discs yesterday reported a financing, trading and operational update for Y/E December 2024. Revenue was 12% ahead at £8.2m, while capital expenditure continued with £5.5m during FY24. There remain numerous challenges to grow output and revenue at the pace required by customers. Its key customers are engaged in improving the Company's manufacturing yield, output and financial stability with discussions on optimising payment terms. This has included increased pricing, funded manufacturing expertise and cash advances of over £4m to support working capital. There is a £13.2m loan agreement solely for use against capital expenditure of which £4.9m had been drawn down at the year end, with further drawdowns having been made. The CEO is optimistic a solution will be found for the constrained working capital which at the Y/E was £0.5m. Tandem Group 185p £8.76m (TND.L) The designer, developer, distributor and retailer of sports, leisure and e-mobility products gave a trading update for the Y/E December 2024 which will be announced on 24th March. A stronger H2 drove an 11% improvement in full year revenue to £24.6m, which is despite the ongoing challenges suppressing already subdued consumer spending. As a result of disciplined execution, cost controls, and operational resilience, it has returned to profitability in FY24. The Board is confident that profit before tax and exceptionals will be in line with market expectations. Innovation remains a key strategic priority with efforts centred on developing new products, introducing enhanced features, designing new electric and mechanical bikes, as well as advancing Home and Garden product development. Venture Life 34.00p £42.77m (VLG.L) The developer, manufacturer and distributor of products for the self-care market yesterday made a trading update for the Y/E December 2024. Its revenues improved 1% to c.£51.8m including the contribution from the Health and Her acquisition made in early November 2024. This was added to its VLG Band division, and its integration is progressing well. The new product range contributed £0.8m to revenues and should add £1m of EBITDA in 2025. The Customer Brands division revenue, which represents c. 34.6% of turnover, is lower year on year due to unexpected destocking. The combined H2 gross margins improved to c.42% from 39.2%, with a greater weighting of revenues from the higher margin VLG Brands. Adjusted EBITDA was a marginal 2.6% lower at £11.3m. Net debt gearing increased to 1.7x from 1.3x due to the debt drawn to support the acquisition and the timing of revenues. The CEO is confident of progress in 2025 resulting from continuing investment in sales and marketing with the additional acquisitive growth. Xeros Technology 0.625p £2.73m (XSG.L) The creator of technologies that reduce the impact of clothing on the planet delivered a trading update for Y/E December 2024, due to be published in May 2025. The Y/E net cash at was £2.8m and with an ongoing focus on operating cost discipline and this is anticipated to be sufficient to take the Group to month-on-month cash flow break even during the year. There are clear near-term commercial deliverables. A Letter of Intent has been signed with a major electronics distributor for an initial order for the XF3 external microfibre plug and go filter. There is growing interest in the Group's FABRIC CARE technology which recently entered a paid-for technical verification process with a leading global washing machine brand. Other OEM’s are in final stage evaluations, which would head towards a commercial launch during 2026. The CEO states that the washing machine industry is ripe for innovation and any one of these evaluations could be transformational.
XSG VLG TND SCE STX CSC APTD B90 DSG MTEC
Xeros’s FY24 trading update shows progress on commercialisation with Tier 1 players, creating multiple opportunities for contract scaling through operational leverage – key to reaching self-sustainability. Tech verification from four global washing machine leaders, two of which management anticipates will move to substantial paid-for joint development agreements (JDAs), demonstrates momentum. We revise down FY24 and FY25 revenue forecasts by 59.5% and 34.6%, reflecting caution on recent delays, notably Yilkmak’s XOrbs order moving from FY24 to 1Q25. However, the Group's current pipeline presents multiple opportunities to drive significant upside potential to our forecasts and long-term value. Cost-reduction measures help offset the lower revenue impact on FY24E PBT, where we still forecast losses narrowing in FY25E before a swing to profitability in the mid-term, supported by the Group's operationally geared licensing model. FY24E net cash of £2.8m and narrowing losses supports our view that the Group will not need to raise additional capital.
Xeros’s interim results are as expected following its recent trading update. Revenue decreased from £113k to £79k, while adj. LBITDA improved from -£2.6m to -£2.4m. Period-end cash of £4.7m benefitted from the exercise of warrants and the placing and retail offer conducted earlier in the year, offsetting a slightly reduced operating cash outflow of -£2.6m. Recent commercial progress includes the previously flagged agreement signed with Donlim, the world’s largest SDA manufacturer, on Xeros’s XF3 technology, and the imminent launch of Yilmak’s Xeros-enabled denim finishing machine. Our forecasts are unchanged and we continue to expect current cash reserves will be sufficient to fund the business to adj. EBITDA and cashflow breakeven, expected in FY2025E.
5th September 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: None Delistings: None What’s baking in the oven ? Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs research@hybridan.com Banquet Buffet*** CAP-XX 0.27p £8.2m (CPX.L) The designer and manufacturer of thin, prismatic supercapacitors and energy management systems announces an unaudited trading update in respect of the financial year ended 30 June 2024. Revenue is expected to be A$4.6m up 26.7% versus the prior financial year. The R&D tax credit of approximately A$1.25m is estimated to be received in November 2024. Year-end cash reserves were A$2.0m and the company is debt free. The Company reports they are making strong progress with their global distribution network and the supercapacitor market is currently experiencing significant growth. The Company's audited results for FY2024 are expected to be released on 29 October 2024. Carclo 33.8p £24.8m (CAR.L) The global provider of high-precision components, offering comprehensive services from mould design, automation and production to assembly and printing, serving the life sciences, aerospace, optics and tech sectors, provide a trading update this morning. The Group's trading performance year to date is in line with management's expectations. The US manufacturing rationalisation and improvement programme is on track. By focusing on cash management and leveraging stronger trading, the Company has further improved their net debt to EBITDA ratio. Expectations for the FY25 full year and FY26 remain unchanged with margin expansion anticipated to continue. EDX Medical 11.25p £40.8m (AQSE: EDX) The developer of innovative digital diagnostic products and services supporting personalised treatments for cancer, heart disease and infectious diseases announces today the appointment of Eric Vick as Chief Commercial Officer. The appointment follows the successful completion of several key commercial agreements which enable the Company to develop and market a range of innovative diagnostic products and services in the UK and key European countries. Eric has worked in the life sciences sector for more than 25 years, building and leading commercial business units for companies from start-ups to global leaders including GSK, Novartis, ViroPharma, Bio Products Laboratory, Ethypharm and Rosemont Pharma. Fusion Antibodies 3.15p £3m (FAB.L) The specialist in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications announces its final results for the year ended 31 March 2024. Audited revenues for FY24 were £1.14m (FY23: £2.90m). There was an increase in sales pipeline opportunities during the second half of FY24, with an orderbook at 31 March 2024 of £0.75m, representing 65 per cent of total FY24 audited revenues. The cash position as at 31 March 2024 of £1.2m (31 March 2023: £0.2m). Ilika 25.5p £42.7m (IKA.L) The developer of solid-state battery technology announces that safety tests undertaken by independent expert assessors have demonstrated the superior safety of Goliath solid state cell battery prototypes relative to lithium-ion equivalent batteries. University College London carried out the nail penetration test, a standard battery safety assessment, on Ilika's Goliath P1 prototype cells. This destructive test creates an internal electrical short-circuit inside a cell by piercing the cell with a metal nail. The test simulates a catastrophic incident that would typically cause energy-dense lithium-ion cells with lithium nickel manganese cobalt oxide cathode chemistry, to dangerously swell, rupture, explode, and catch fire in a process known as thermal runaway, often leading to temperatures above 600°C. The Company believes these test results contribute to a growing body of evidence demonstrating Goliath's superior safety performance. Insig AI 12.75p £15m (INSG.L) The data science and machine learning solutions company and its subsidiaries announced its results for the year ended 31 March 2024. The Company has reduced its adjusted EBITDA loss of £0.6m from £2m in the previous year. The FCA has recognised Insig AI as a key contributor in its anti-greenwashing technology initiative. The CEO, Richard Bernstein, believes they have visibility of regulatory tailwinds that should represent the compelling event in the nascent market of non-financial corporate disclosures. Kodal Minerals 0.53p £108m (KOD.L) The mineral exploration and development company provided an update on the progress of construction of the Dense Media Separation (DMS) processing plant and mining at the Ngoualana open pit mine at its flagship fully funded Bougouni Lithium Project in Southern Mali. The DMS and Ngoualana open pit development continues to advance with the open pit mining currently ahead of schedule. Wide, high-grade extensions returned at the Boumou Prospect include 7m at 1.16% Li2O from 147m and 13m at 1.07% Li2O. Mkango Resources 6.5p £18.1m (MKA.L) The mineral exploration and development company announces that it has completed a private placement to raise gross proceeds of £1,250,000 at a price per Subscription Share of 5 pence. The Company intends to use the net proceeds of the Subscription to acquire additional equipment for the 2025 commercial development of rare earth magnet recycling operations at Tyseley Energy Park in Birmingham, UK and at Pforzheim, Germany, by HyProMag Limited and HyProMag GmbH, in addition to working capital. Smarttech247 10p £11.4m (S247.L) The provider of AI-enhanced cybersecurity services providing automated managed detection and response for a portfolio of international clients announces a trading update for the year to 31 July 2024. The company anticipates that both EBITDA and operating profit will be below market guidance, but the Company will remain profitable after the usual adjustments for non-trading items. Going forward, the Company believes they are well-positioned and well-funded for growth in an exciting sector and with a customer base that clearly values the services that the Company is able to provide. Xeros Technology Group 0.75p £3.9m (XSG.L) The creator of technologies that reduce the impact of clothing on the planet announced a trading update and a filtration licence agreement with Donlim Group. The Board is confident that the market for microfibre filtration in washing machines remains significant in the medium term and that the licensing agreements it has in place, including the one with Donlim announced today, leave the Group well placed to generate significant revenues from this developing market. The impact of the delays in the filtration legislation in France is to reduce the Group's revenue expectations for FY24 and FY25 to £0.5m and £3.8m respectively, and adjusted EBITDA loss to £4.2m for FY24 and £1.0m for FY25. The Group anticipates cash balances at 31 December 2024 of £2.9m. Cash at 30 August 2024 was £4.0m, which the Board still expects to be sufficient to finance operations through to month on month cashflow break-even, during the latter part of 2025.
XSG MKA KOD IKA FAB CAR CPX
Xeros’s FY2023 results are largely as expected with adj. LBITDA of -£4.6m and year-end cash both in-line with our forecasts. Tight cost control ensured cash utilisation averaged c.£400k/month whilst management continued to drive commercial progress. Xeros is now well capitalised with a further £1.7m raised through the exercise of warrants and a £4.7m fundraise complete. The focus for FY2024E and beyond is on executing on the existing pipeline of opportunities including the launch of Yilmak’s denim finishing machine which is expected imminently. Filtration sales and the launch of IFB’s 9kg domestic machine are expected to follow later in the year. Our forecasts are unchanged and we continue to expect month-on-month adj. EBITDA and cash flow breakeven in H2 FY2024E. We reiterate our 18p/share target price.
Xeros has announced it is in the process of raising £4.5m (gross) through a placing and subscription plus up to a further £1.0m through a retail offer, which we expect will be sufficient to fund operations through to month-on-month cashflow breakeven, which we continue to expect in H2 FY2024E. We continue to expect FY2024E revenue growth to be driven by first sales of its Filtration technology ahead of microplastic filtration legislation coming into effect in France in January 2025, and the continued ramp-up of revenues in Care and Finish, where progress under recent licence agreements has been encouraging.
Xeros has published interim results highlighting continued commercial progress, a sharp decrease in overheads and adj. LBITDA falling from -£3.9m to -£2.6m. Cash decreased from £6.5m at the start of the period to £2.6m at the end of August with utilisation below £0.5m/month. We expect further progress in H2 supported by first sales under the Yilmak/KRM contract in Finish and further progress expected in Care, leaving Xeros on track to meet our forecasts for FY2023E. We continue to expect Filtration revenue from FY2024E at a near-100% gross margin ahead of microplastic filtration legislation coming into effect in France in January 2025, and we continue to expect month-on-month EBITDA and cash breakeven towards the end of FY2024E. We reiterate our 18p/share target price, implying c.600% upside.
18 April 2023 @HybridanLLP 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. 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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. 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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. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Ashoka WhiteOak Emerging Markets Trust Plc intends to join the Premium Segment of the London Stock Exchange. The Company is a new UK investment trust seeking to achieve long-term capital appreciation through investment primarily in quoted securities that provide exposure to global Emerging Markets and intends to raise £100m at 100p per ordinary share. Expected Admission 3 May 2023. Drumz Plc is an investing company admitted to trading on AIM with an investment policy focused on technology businesses based in Europe. Drumz currently has two investments, being a 25%. shareholding in Acuity Risk Management (ARM) and a 5.85% legacy shareholding in KCR Residential REIT plc (KCR). Admission to AIM is being sought as Drumz has conditionally agreed terms to acquire the remaining issued shares and to be issued shares in ARM for a total consideration of approximately £3.6m. Drumz plc will be renamed Acuity RM Group plc post Admission. The Company intends to raise £1.45m on Admission and will have a market capitalisation of £5.4m. Expected Admission 25 April 2023. Vinanz Limited intends to join the Access Segment of the AQSE Growth Market. Vinanz Limited aims to build out a fully-fledged Bitcoin mining company initially focusing on installing clusters of Bitcoin miners in multiple decentralised data facilities throughout the US and Canada through third-party cryptocurrency mining providers such as Compass Mining. Whilst the Company will focus initially on BTC mining, it will also consider mining of other cryptocurrencies, and operations in the DeFi and Big Data space in the future. Expected Admission 21 April 2023. M7 Box+ REIT plc, a newly established, externally managed closed-ended investment company announces that it intends to join the Wholesale segment of IPSX. Upon Admission, the Company proposes to acquire a portfolio of seven let and operational e-warehouses from M7 Box+ II LP. As at 31 December 2022, the Property Portfolio was valued at £228.9m. Expected Admission April 2023. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** CloudCoCo Group 1.05p £7.4m (CLCO.L) The UK provider of Managed IT services and communications solutions provides a operational update. (1) More than 15,000 products added to the MoreCoCo website: The Group announces its partnership with a global leader in the purchase, restoration and sale of IT hardware. The strategic partner's refurbished products will be available on the MoreCoCo site with three-year warranties. (2) CloudCoCo announces the launch of a dedicated and agnostic multi-cloud division. (3) Strategic partnerships with Abstract Tech and Ingram Micro: Abstract Tech is a Leeds-based consultancy. Through this partnership, CloudCoCo will be able to tap into the expertise of Abstract's 150 employees for advanced multi-cloud projects. Ingram Micro is the world's largest B2B provider of technology product and supply chain management services. CloudCoCo will migrate its cloud business to Ingram Micro Cloud Marketplace to offer leading-edge cloud solutions, such as Microsoft Azure, AWS and Google GCP. This strategic partnership allows CloudCoCo's multi cloud practice to leverage Ingram's hundreds of in-built cloud providers through a simplified single portal. (4) CloudCoCo announces its platinum sponsorship of the first ever Silicon Yorkshire Expo, scheduled to take place at the Everyman Cinema in Leeds on 19 April 2023. Crossword Cybersecurity* 8.25p £7.7m (CCS.L) The cybersecurity solutions company focused on cyber strategy and risk, announces that two UK universities have gone live with its third party supply chain assurance platform Rizikon Assurance. The contract win follows on from Crossword's attendance at the UK's UCISA (Universities and Colleges Information Systems Association) national conference earlier this month. UCISA is the professional body for digital practitioners in Education. They represent almost all the major UK universities and higher education colleges with a growing membership among other educational institutions and commercial organisations interested in information systems and technology in UK education. Crossword is a UCISA member. FireAngel SafetyTech 10.5p £19.0m (FA..L) The developer and supplier of home safety products announces two three-party delivery and production agreements with long-term manufacturing partner and Techem Energy Services GmbH (Techem). The total income opportunity for FireAngel has grown significantly to an aggregate of up to c.$7.50 per alarm (comprising fees, royalties, and purchase price of the Company's own CO sensor). Increased development and manufacturing set up fees of up to £650k will be received by the Company. Shipments of the new alarm is expected to start in 2024 with production volume building in 2025. Harvest Minerals 5.75p £10.7m (HMI.L) The fertiliser producer provides an update on Q1 2023 sales of its organic, multi-nutrient, direct application fertiliser, KP Fértil®, from its 100% owned Arapua Fertiliser Project in Brazil (Arapua). Sales orders received total 16,755 tonnes versus budget of 12,000 tonnes. Sales orders invoiced and delivered total 3,560 tonnes. The start to 2023 is consistent notably slower year-on-year, as the concerns over the situation in the Ukraine accelerated buying decisions. However, the Company continues to grow customer base and order book. As such, the Company believes it is on track to achieve its 2023 year-end invoiced sales target of 200,000 tonnes of KP Fértil®, a 33% increase over 2022. Induction Healthcare 22.5p £20.8m (INHC.L) The digital health platform driving transformation of healthcare systems, provides a trading update. Revenues from contracts for the year to 31 March 2023 (FY23) are expected to be £13.6m, up 11.8% on prior year . FY23 is the first year the Group has benefited from a full year of revenues from its Attend Anywhere acquisition (2022 £7.9m). Net cash was £4.2m (2022: £7.5m). With its monthly cost base down by over 30% as at 31 March 2023, the Company is pleased with the progress towards the objective of self-sustaining growth and cash flow breakeven in 2024. Kromek Group 6.35p £27.4m (KMK.L) The developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announce that it has entered into an initial seven-year agreement with a Tier 1 OEM to develop CZT-based detectors for use in the customer's advanced medical imaging scanners. The two companies will work together to integrate Kromek's CZT-based detectors into the customer's medical imaging scanners. Following a short development phase, the agreement will transition into a longer commercial supply phase. LifeSafe Holdings 33.5p £7.4m (LIFS.L) The fire safety technology business with innovative fire extinguishing fluids and fire safety products, reports its audited results for the year ended 31 December 2022. Revenue was up 497% to £4.0m (2021: £670k), exceeding previous market expectations. Gross profit was £2.3m, at 57.0% margin. Loss from operations was £2.8m (2021: loss of £1.5m). Net cash at 31 December 2022 was £1.1m. The Company is seeing solid start to 2023, with sales over four times those of the first two months of 2022 and gross margin ahead of last year by almost 4%. Oriole Resources 0.17p £4.6m (ORR.L) The exploration company focused on West Africa announces that it has received a rebate totalling 157k from HMRC in R&D tax relief in respect of geoscientific advances sought by the Company through its exploration programmes. The claim is for the year ended 31 December 2022. CFO Bob Smeeton said: "The 2022 exploration work programmes in Cameroon continued to deliver exciting results, with a fourth drill programme at Bibemi leading to the definition of a JORC-compliant Inferred Resource, and excellent results from the early-stage work on the Central Licence Package, including the detection of anomalous lithium. We are delighted to have received further support for our research work from HMRC." Volex 244p £388.2m (VLX.L) The specialist integrated manufacturer of critical power and data transmission products, issues a trading update for the year ended 2 April 2023 (FY23). Revenue is expected to be at least $710m, representing an increase of at least 15.5% compared with the prior year. Underlying operating profit is expected to be at least $66m, at least 17.4% higher year-on-year. Both revenue and underlying operating profit are ahead of market expectations. An increase in gross margins and continued cost control improvements is expected to deliver a strengthening in underlying operating margins to 9.3% (FY2022: 9.1%). The Group has an active acquisition pipeline to help achieve its target of growing revenues to $1.2bn by the end of FY27. Xeros Technology Group 3.8p £5.7m (XSG.L) The creator of technologies that reduce the impact of clothing on the planet, publishes its audited results for the year ended 31 December 2022. Revenue was £0.2m (2021: £0.5m). Adjusted EBITDA loss was £7.4m (2021: loss £6.3m). Cash at 31 March 2023 was £4.5m. With the implementation of a licensing model, the revenue mix is changing with revenue now derived from three principal sources: servicing, licensing and sale of goods. Delays in domestic Care launch affect forward looking revenue mix across 2023 and 2024, with revenue lower than previously forecast. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Chef: Emily Liu 0203 764 2344 emily.liu@hybridan.com Chef: Sacha Morris 0203 764 2345 sacha.morris@hybridan.com
XSG VLX ORR KMK HMI FA/ CLCO 9N4
Xeros’s FY22 results are in line with its February trading update, with strong momentum in Filtration continuing into FY23 with the signing of two further domestic license agreements in March 2023. With Filtration now building momentum in the context of a c.100m unit, 2.5% CAGR market with regulatory growth drivers, we continue to believe Filtration’s potential is massive, with the technology now taking on greater prominence in our forecasts, contributing at almost 100% gross margin. However, progress with IFB has been slower than expected and we are reducing our overall revenue forecasts to £0.8m (prev. £3.4m) in FY23, £2.7m (£8.9m) in FY24 and £7.6m (£18.3m) in FY25. We continue to expect EBITDA breakeven in FY24, albeit we now envisage this happening towards the end of the period. Our 18p target price is based on 20x FY25 P/E.
20 March 2023 @HybridanLLP 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. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: Altona Rare Earths has left the Standard Segment of the AQSE Growth Market. Forbes Ventures has left the Access Segment of the AQSE Growth Market. What’s cooking in the IPO kitchen?** Ocean Harvest Technology Group plc, a commercial scale producers of seaweed blend ingredients for the animal feed market intends to join AIM. The main country of operation is Vietnam where the Company's main production and processing facility is located. The Company is headquartered in Theale, UK with further operations in Galway, Ireland and Binh Duong Province, Vietnam. Expected Admission date 29th March 2023. M7 Box+ REIT plc, a newly established, externally managed closed-ended investment company announces that it intends to join the Wholesale segment of IPSX. Upon Admission, the Company proposes to acquire a portfolio of seven let and operational e-warehouses from M7 Box+ II LP. As at 31 December 2022, the Property Portfolio was valued at £228.9m. Expected Admission April 2023. Altona Rare Earths, a mining company focused on the development of a significant Rare Earth Elements (REE) mining project in Africa, announced its intention of withdrawing from the AQSE Growth Market to the Standard Segment of the Main Market. The Company has just raised £2m and plans to use the proceeds to complete its maiden JORC compliant Mineral Resource Estimate and a Scoping Study for its Monte Muambe Rare Earths mining project in northwest Mozambique. Admission Delayed. A further update will be provided once the date of Admission, currently expected to be towards the end of March 2023, is confirmed. Fadel Partners, a developer of cloud based brand compliance and rights and royalty management software, working with some of the world's leading licensors and licensees across media, entertainment, publishing, consumer brands and hi-tech/gaming companies intends to join the AIM market. FADEL has two solutions, being IPM Suite and Brand Vision. Expected Admission late March 2023. Onward Opportunities Limited intends to join the AIM market. The Company's investment objective is to generate returns for Shareholders through investments in equity and equity-related instruments of UK smaller companies that are predominantly listed or admitted to trading on markets operated by the London Stock Exchange. Expected Admission mid-March 2023. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** Atlantic Lithium 27.6p £167.2m (ALL.L) The funded African-focussed lithium exploration and development company targeting to deliver Ghana's first lithium mine announces the commencement of auger drilling at the Ewoyaa Lithium Project (Project). The Company intends to focus on 20,000m of auger drilling over a five-month period to test multiple targets identified within the Project area and broader Portfolio; with four auger rigs active to test for and define pegmatite footprints. Passive seismic geophysics survey to test for potential concealed pegmatite targets. The Company is pushing ahead to achieve production and benefit from the ongoing lithium demand expected over the coming years. Bigblu 62.5p £56.6m (BBB.L) A provider of alternative super-fast and ultra-fast broadband services announces its audited results for the period ended 30 November 2022. Revenue increased 15.1% to £31.2m (FY21: £27.1m), adjusted EBITDA improved by 11.4% to £5.1m (FY21: £4.6m), adjusted profit after tax was £2.6m (FY21: 2.5m), and the Company held net cash of 4.2m (FY21: £5.2m) after a payment of £1.2m following the acquisition of Clear Networks (Pty) in January 2022. On 21 December 2021, the Company signed a Distribution Partner Agreement with OneWeb, to distribute low Earth Orbit satellite based broadband services and the Board remains focused on maximising value and returns for shareholders. Corcel 0.29p £2.3m (CRCL.L) The extractive industries exploration and development company with interests in battery metals announces its unaudited half-yearly results for the six months ended 31 December 2022. Corcel has broadened its strategy to include oil and gas. The Company has restructured its PNG nickel assets, positioning them in a broader portfolio, acquired and subsequently farmed out the Mt. Weld project in Western Australia and completed a series of asset sales, including the Tring Road and the Burwell projects. The Company is therefore now positioned with near term, and potentially transformational, news flow from both Mt Weld and potential oil and gas acquisitions. Directa Plus 84.5p £55.8m (DCTA.L) A producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets has been granted an Italian patent for its G+® graphene technology for air-filtering applications. The patent covers the use of G+® for automotive, heating, ventilation and air conditioning (HVAC) applications. G+® graphene has benefits due to its antibacterial and antiviral qualities that maintain filter cleanliness. Genedrive 41.75p £38.6m (GDR.L) The point of care molecular diagnostics company announces that the Genedrive® MT-RNR1 ID Kit is in process for roll out at two further hospital sites in the North West NHS. The Genedrive®MT-RNR1 ID Kit helps to avoid irreversible lifelong hearing loss in specific infants exposed to aminoglycosides by detecting the m.1555A>G gene variant that can cause deafness. The implementation project is scheduled to commence in April. Once fully subscribed at this regional level, the test would be available when needed to c.30k new born babies over the next NHS fiscal year, of which 10-12% are modelled to be admitted to a regional neonatal unit. Great Southern Copper 1.2p £2.6m (GSCU.L) The company focused on copper-gold exploration in Chile announces that the results from its scout drilling programme at the Cerro Chinchillon prospect confirm the discovery of a large intrusive-related copper-gold mineralised system. Mineralisation hosted in monzonite intrusives with grades up to 1.65% Cu and 3.62g/t Au and elevated Cu grades (> 300-500ppm Cu) within drill-tested monzonitic intrusions indicate they are an important control to the intrusive-related type Cu-Au mineralisation. The Group’s ongoing regional exploration efforts are identifying new targets which require further prospect-scale exploration. Serinus Energy 7.4p £8.2m (SENX.L) An international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania announces its annual financial results for 2022. Revenue for the year end was $49.3m (2021 - $40.0m) EBITDA was $12.7m (2021 - $12.3m), and the Group's operating assets remained comprising: Romania - $181.57/boe (2021 - $52.44/boe) and Tunisia - $54.34/boe (2021 - $29.77/boe). The Company initiated a comprehensive block wide Geological Review engaging RISC Consultancy and the Board remains focused on delivering value for their shareholders. Spectra Systems Corporation 150p £76.3m (SPSC.L) The Company focused in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, announces its results for the twelve months ended 31 December 2022. Revenue of $19.6m (2021: $16.5m) up 18%, adjusted EBITDA up 17% at $8.1m (2021: $6.8m), adjusted profit before tax up 17% to $7.7m (2021: 6.6m) and the Company held cash of $17.4m (2021: 16.7m). The Board believes that the Company is on track to meet market expectations for 2023. Ten Lifestyle Group 92.3p £77.3m (TENG.L) The platform driving customer loyalty for global financial institutions and other premium brands announces its trading update for the six months ended 28 February 2023 (H1). Half year revenues expected of c.£30.9m, c.49% above prior year (H1 2022: £20.8m), adjusted EBITDA for H1 is expected c.£5.0m (H1 2022: £0.9m), and the Group's cash position was c.£7.2m (FY 2022: £6.6m), with net cash of c.£0.5m (FY 2022: £3.2m). The Group has continued its investment in technology and proposition throughout the period to drive improvements. Xeros Technology Group 4.3p £6.5m (XSG.L) The creator of technologies that reduce the impact of clothing on the planet announces the signing of a third licensing agreement for its XFilter filtration technology with another global component manufacturer. This third agreement further increases Xeros' market access, with potential to deliver substantial revenues over the term of the license. Under the 10 year non-exclusive agreement, the Partner is licensed to manufacture and sell filters incorporating Xeros' proprietary XFilter technology on a global basis. As with the first two agreements, Xeros will receive a royalty per filter device sold by the Partner. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Chef: Emily Liu 0203 764 2344 emily.liu@hybridan.com Chef: Sacha Morris 0203 764 2345 sacha.morris@hybridan.com
XSG TENG SPSC GDR DCTA CRCL SNUYF
9 March 2023 @HybridanLLP 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. 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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. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Fadel Partners, a developer of cloud based brand compliance and rights and royalty management software, working with some of the world's leading licensors and licensees across media, entertainment, publishing, consumer brands and hi-tech/gaming companies intends to join the AIM market. FADEL has two solutions, being IPM Suite and Brand Vision. Expected Admission date is late March 2023. Onward Opportunities Limited intends to join the AIM market. The Company's investment objective is to generate returns for Shareholders through investments in equity and equity-related instruments of UK smaller companies that are predominantly listed or admitted to trading on markets operated by the London Stock Exchange. Expected Admission date is mid-March 2023. Essentially Group plc, its strategy is the acquisition, holding and development of companies active in the health food and beverages market, intends to join the AQSE Growth Market. On 1 September 2022, Essentially Group UK acquired Essentially Holdings Ltd (and its wholly owned subsidiary, Essentially Juices Manufacturing LLC (EJM)), EJM is active in the UAE and Kingdom of Saudi Arabia fruit and vegetable juice market. Expected Admission date 17th March 2023. MBH Corporation plc, an investment holding company with subsidiaries in multiple industries including the construction, education, leisure, healthcare, food & beverage, property, engineering and transport sectors, intends to join the AQSE Growth Market. MBH is currently traded on the Dusseldorf and Frankfurt Stock Exchange. Expected Admission date 13th March 2023. PanGenomic Health Inc, currently traded on the Canadian Securities Exchange market intends to dual list on the AQSE Growth Market, as a springboard to expand footprint of its personalised and self-care digital health platforms in the UK/EU markets. The Company has three platforms: Nara App, Mindleap.com and the PlantGx Platform. PanGenomic Health Inc is currently traded on the CSE. 88.6% of the total issued shares will be floated. Admission is delayed. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** EnSilica 68.5p £51.5m (ENSI.L) The mixed signal chip maker announces that it has conditionally raised £2.0m by way of a placing and at a price of 70p per new ordinary share. Net proceeds will be used to support the Company in responding to continued contract momentum including: EUR5m contract to develop a novel chip to address the next gen mass market satellite broadband; supply contract with leading European OEM worth excess of US$30m; and a US$3.6m contract with a tier 1 automotive company. Management is currently pursuing an estimated pipeline of c.£250m. Franchise Brands 227p £295.8m (FRAN.L) The international multi-brand franchise business, announces its audited results for the year ended 31 December 2022. Revenue increased 72% to £99.2m (2021: £57.7m), adjusted EBITDA increased 80% to £15.3m (2021: £8.5m), adjusted profit before tax increased by 98% to £12.8m (2021: £6.5m) and the Company held net cash of £8.0m (2021: £6.5m). The Group completed of the acquisition of Filta in March 2022 and expects greater opportunities for organic, acquisitive and international growth. IQE 32.28p £259.8m (IQE.L) The supplier of compound semiconductor wafer products and advanced material solutions provides a trading update. The Group has seen weaker demand leading to inventory build-up throughout the supply chain. This reduction in customer orders and forecasts is expected to decline revenue by approximately £30m for H1 2023 year-on-year. The near-term market softness is expected to be temporary and a return to year-on-year growth is anticipated in H2 2023 and management expectations for FY22 results remain in line. Jarvis Securities 142.5p £63.7m (JIM.L) The parent of Jarvis Investment Management and operator of a number of retail stockbroking brands providing nominee, certificated, SIPP and ISA accounts, announces its results for the year ended 31 December 2022. Revenue declined by 11.8% to c.£12.6m (FY21: c.£14.3m), profit before tax decreased by c.20% to c.£6.1m (FY21: c.£7.6m) and profit for the period reduced 20% to c.£4.9m (FY21: c.£6.2m). General share transaction volumes remain below average across the whole industry so the group have seen a reduction in line with that. However, the Group are confident that business will emerge financially stronger as a result of this upcoming year. N4 Pharma 2.1p £4.9m (N4P.L) The specialist pharmaceutical company developing Nuvec®, a novel delivery system for cancer treatments, announces its audited results for the year ended 31 December 2022. No revenue was generated by FY22 (FY21: £nil), operating loss was reduced to £1.029m (FY21: loss of £1.84m) and cash stood at c.£1.9m (FY21: £1.78m) having raised £1.05m at the end of 2022. The Company has filed its own patent on using Nuvec® to enhance the performance of viral vector. The Company is well funded to deliver its siRNA programme and will development outreach working alongside a US company. Oriole Resources 0.13p £3.5m (ORR.L) The exploration company focussed on West Africa, announces its final results for the year ended 31 December 2022. Incoming funds totalling £0.90m have allowed for £0.84m of direct exploration expenditure in Cameroon, operating loss decreased by 63% to £0.53m (2021: £1.44m). Loss for the year remained at £1.56m, due to £1.4m impairment of the legacy asset Thani Stratex Resources. Early soil sampling on the Eastern CLP licences project in Cameroon has identified multiple gold-anomalous zones, rock-chip sampling of quartz veins and the host rocks at Mbe have also returned grades of up to 134.10 g/t Au. Sampling and mapping of the area will continue in order to identify drill targets for the 2023/24 field season. Seraphim Space Investment Trust 9.35p £46.8m (SSIT.L) The world’s first SpaceTech investment company, announces its interim results for the period ended 31 December 2022. The Company has invested £13.4m during the period (£4.4m in new investments and £9.0m in follow-on investments). NAV per share decreased by 7.2% over the period, from 99.97p to 92.74p. The Company had investments in 29 SpaceTech companies with an aggregate value of £181.2m and remains well-capitalised to support high potential current portfolio companies and new investments with cash reserves of £40.9m. Symphony Environmental Technologies* 10.5p £19.4m (SYM.L) The global specialist in technologies that make plastic and rubber products smarter, safer and more sustainable, announces that its USA distributor of d2w biodegradable plastics technology, Better Earth LLC (Better Earth) has signed an exclusive supply agreement with TricorBraun for its BioBottles™ brand of polyethylene bottles. TricorBraun is a global packaging company. TricorBraun sold over 8bn containers in 2022 and is working jointly with Better Earth, supporting its exclusive agreement with a sales and marketing campaign in the US and Canada. Symphony is well placed to capture a share of the US and Canadian bottle markets, with additional verticals in the bottle market still available to target. WANdisco £13.10 £880.3m (WAND.L) The data activation platform provides a trading revision. Following investigations, significant and potentially fraudulent irregularities with regard to received purchase orders and related bookings, as represented by one senior sales employee, have been discovered. This will significantly impact the Company's cash position and the Board now expects FY22 revenue could be as low as USD9m and not USD24m. The Company has requested that its shares be suspended from trading on AIM while it conducts an investigation. Xeros Technology Group 4.9p £6.52m (XSG.L) The creator of technologies that reduce the impact of clothing on the planet, announces the signing of a further licensing agreement for its XFilter filtration technology with a global component manufacturer with headquarters in Europe. This licensee supplies electro-mechanical components to washing machine manufacturers including Haier, Whirlpool, Midea, Miele and Bosch. Under the 5-year agreement, it is licensed to manufacture and sell filters incorporating Xeros' proprietary XFilter technology on a worldwide basis. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Chef: Emily Liu 0203 764 2344 emily.liu@hybridan.com Chef: Sacha Morris 0203 764 2345 sacha.morris@hybridan.com
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Xeros has released a trading update for FY22. The statement notes that commercial progress is continuing as expected with IFB and within its Filtration and Finish technologies. However, as a result of the timing of commercial milestone payments and minor restructuring costs incurred towards the end of the period, it now expects FY22 adj. EBITDA to be lower than previously guided. Consequently, we are reducing our FY22 revenue forecast from £0.4m to £0.2m, and our FY22 adj. EBITDA forecasts from -£6.8m to -£7.4m. The FY22 year-end cash position was £6.5m, £0.6m lower than our forecast of £7.1m, with the difference being a result of the fundraise being lower than our initial assumption and lower-than-expected EBITDA partially offset by successful receipt of an R&D tax rebate of £0.5m and a lower working capital outflow. Our forecasts for FY23 onwards are essentially unchanged and the commercial opportunities available to Xeros remain sufficient to see it through to breakeven in FY24, in our view.
Xeros has announced that it is in the process of raising £6m through a placing (and an open offer raising up to £1m). Further, the company has announced interim results highlighting a net cash position of £2.6m at the end of August. Cash burn, at £0.5m/month, is consistent with our forecasts and, coupled with the proposed fund raise, should fund the business to expected profitability in FY2024E. We adjust our forecasts for the fund raise, which includes rebasing our target price to 25p/share.
We have taken a fresh look at the Xeros investment case, re-instated forecasts and set a new price target of 125p/share. The commercial and environmental benefits of the XOrb, XDrum and XFilter technology platforms remain as compelling as ever, while there is now real commercial momentum, especially in Domestic Laundry and XFilter. We now expect breakeven in FY2024E.
While we were away Woodside Petroleum (WDS.L) joined the Main Market. Woodside is an ASX listed oil and gas company based in Perth and is Australia’s leading natural gas producer. Intosol Holdings (INTO.L) has left the Main Market. Dish of the day Joiners: No Joiners Today. Leavers: CIP Merchant Capital has left AIM. What’s cooking in the IPO kitchen? AssetCo plc, intends to join re-join AIM. The Company's strategy is to develop an agile asset and wealth management company that meets the needs of investors in the 21st century by acquiring, managing and operating asset and wealth management activities and interests, together with other related services. The Company is in the process of acquiring the entire issued share capital of River and Mercantile Group plc (RMG), via a reverse takeover and therefore a Readmission Document is required for the enlarged group. Due 15 June 2022. Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in the UK and Europe. Psych is developing the Blossom Database pursuant to a third-party licensing arrangement, and Psych will work to develop an artificial intelligence platform that will provide biotech companies advanced clinical data that will be able to fast-track drug development and loop back the real-world data, in a centralised database, to provide feedback on molecules and associated therapy programmes. Due Date 9th June 2022. Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company's Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022. Silverwood Brands (AQSE:SLWD), has signed a conditional share purchase agreement for the acquisition by the Company of Balmonds Skincare Ltd, a UK based skincare company that manufactures cosmetic skincare products primarily for consumers who suffer from skin conditions such as eczema, psoriasis and dermatitis. Balmonds' product line is made from natural ingredients that work to protect and hydrate sore and inflamed skin. The proposed acquisition of Balmonds constitutes a reverse takeover under the AQSE Growth Market Rules. AGM to be held on 15 June 2022. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet 1Spatial 50p £55.2m (SPA.L) 1Spatial, today announces that, following a direct award via G-Cloud 12, it has secured a new two-year contract with High Speed Two (HS2), the company responsible for developing the UK's new high speed rail network, to build a data validation gateway. The gateway will enable HS2 to validate the quality, conformance and design of construction-related data submitted by their Supply Chain which in turn will contribute to the efficiency and effective information delivery on Europe's largest infrastructure project. This is 1Spatial's first significant contract with HS2 and has a total value over the two years of £0.9m, with potential options to extend for a further two years. The gateway will comprise 1Spatial's 1Data Gateway product as a web portal for data uploading, and 1Integrate, to check the compliance and quality of the data against stringent HS2 standards and criteria. This will enable validated data to then be passed onto a Common Data Environment (CDE) to ensure compliance with wider UK government Digital Engineering initiatives. Through 1Spatial's products, the gateway will create greater reliability of data and reduce risks by delivering consistent and accurate geometrical, geospatial, and non-geometrical data ingested across the full Common Data Environment (CDE) domain. Arrow Exploration 20p £41.6m (AXL.L) Further update on the Rio Cravo Sur-1 well located on the Tapir Block in the Llanos Basin of Colombia. Spud on May 23, 2022, the RCS-1 well was drilled to a true vertical depth of 8,105 feet on June 3rd. The well has been successfully cased and cemented as of June 6th. Initial technical evaluation indicates six separate oil-bearing reservoirs, two of which were not evident in RCE-1 or RCE-2. Cumulative net pay in all zones exceeds 55 feet. The six separate reservoirs were found in the C7, the Gacheta and the Ubaque, between 7,077 feet and 8,105 feet. Comprehensive testing of these individual zones will commence in the next few days. It is anticipated that each zone will require five days of testing that includes perforating, flowing and shut in for pressure buildup and analysis. The well will be put on production immediately following the testing program. RCE-2 continues to produce at a stabilized rate of 1,000 BOPD (500 BOPD net) from 2 separate reservoir units in the Lower Miocene Carbonera Formation. Four additional zones identified in RCE-2 will ultimately be produced from existing and future wells. Marshall Abbott, CEO of Arrow commented: "Initial evaluation continues to demonstrate the multi-zone potential of this fault bounded structure. Known zones were penetrated at the highest structural elevations yet. As well, 2 new oil-bearing zones have been identified which will add materially to the overall field development plan." Blancco Technology 207p £156.6m (BLTG.L) The industry standard in data erasure and mobile lifecycle solutions has agreed to acquire WipeDrive Inc, formerly known as White Canyon Software Inc, a US-based provider of data erasure software solutions for corporations and public sector organisations. The Board expects the Acquisition to be immediately earnings enhancing upon completion. The total consideration for WipeDrive is up to US$10m (£8m), consisting of an initial cash consideration of US$8.5m to be paid on completion and further contingent consideration of up to US$1.5m to be paid in cash 12 months following completion subject to certain performance criteria. The total consideration will be financed through the Group's existing cash and debt resources. Headquartered in Pleasant Grove, Utah, WipeDrive was previously named White Canyon Software Inc and changed its name to WipeDrive in 2021. WipeDrive provides data diagnostic, wiping, transfer and verifying software tools. WipeDrive has a significant customer base of over 500 organisations, spanning IT Asset Disposition, Asset Management Systems, corporate and government agencies, including Fortune 500 companies, and large US government bodies. WipeDrive also has various proprietary technologies that Blancco will leverage with its current client base. Cordel Group 6.7p £11.5m (CRDL.L) The Artificial Intelligence platform for transport corridor analytics, announces that in partnership with Holland LP, it has been awarded a contract to deliver its LiDAR-based solutions to the Southeastern Pennsylvania Transportation Authority (SEPTA) in the USA. SEPTA is one of the largest transit systems in the United States, serving five counties in the Greater Philadelphia area and connecting to transit systems in Delaware and New Jersey. SEPTA operates bus, rapid transit, commuter rail, light rail, and electric trolley bus services for nearly 4m people. Cordel's specialist rail analytics subsidiary, Cordel Technology Inc, announced on 27 September 2021 the commencement of its partnership with Holland LP, a leading US rail inspection company. Cordel's sensors "piggyback" on Holland's testing vehicles, enabling customers to benefit from both partners' inspection data streams without requiring additional track time. ECR Minerals 1.3p £13.6m (ECR.L) Progressive update from drilling at HR3, Bailieston with high gold intercepts received for hole BH3DD034. Visible gold was previously announced from this hole. ECR CEO Andrew Haythorpe commented: “This is an outstanding result, capably executed and delivered by Adam and the drill team. As a geologist myself, along with the team, I am excited by the continuity of grade and the manner in which the Maori Anticline is further revealing itself through each assay result. There is clearly much more to come.” Drillhole BH3DD034 returned four high gold grade intercepts at drilled depths; (0.3m@ 20.34 g/t Au from 18.2m), (0.65m @ 13.02 g/t Au from 54.2m), (0.3m @ 10.59 g/t Au from 97.9m) and (0.25m @ 45.0 g/t Au from 149.2m). Visible gold recorded at 149.2m depth. Mineralised zones show continuity to adjacent previously drilled intercepts in hole BH3DD019. Journeo 118p £10.3m (JNEO.L) The provider of information systems and technical services to transport operators and local authorities, announced two contract awards for software, information systems and 5-year support services totalling £1.7m with Nottingham City Council. The first contract, valued at £1.4m is for the upgrade of 1,600 existing LED outdoor displays using a 4G Intelligent Gateway, the 'Journeo Edge'. These upgraded displays will join over 1,000 displays previously supplied by Journeo throughout Nottingham City Council, Nottinghamshire County Council, Derby City Council and Derbyshire County Council, and will extend the life of the displays beyond the depreciation of the UK's 2G and 3G networks. A small number of displays will also feature Journeo's next generation 5G gateway. The second contract, valued at £0.3m, is for Journeo's powerful new messaging software tool to enable Nottingham City Council to integrate vital travel disruption information with scheduled and real time departure data for over 10,000 bus stops throughout the region. This intelligent new service will consume data from standardised data feeds and autonomously distribute the most relevant information to transport users via displays, mobile apps and online sources already used by the authority to provide information. Keywords Studios 2,403p £1,842.7m (KWS.L) The international technical and creative services provider to the global video games industry, today announces that it has entered into a conditional agreement to acquire Forgotten Empires, LLC, a full service game development studio, for a total consideration of up to US$32.5m. The acquisition will further the Group's strategy to become the 'go to' technical and creative services platform for the global video games industry. Founded in 2013 by studio head Ryan Shepherd, who will continue leading Forgotten Empires within Keywords Studios, the studio specialises in the development of real time strategy games (RTS) including Microsoft's classic franchise, Age of Empires. Headquartered in Ohio in the US, Forgotten Empires' talented team of 53 game developers are passionate individuals from around the globe who are also avid RTS fans. Forgotten Empires has worked on many games including all of the Age of Empires Definitive Editions, Age of Mythology: Extended Edition and Age of Empires IV and has worked alongside Keywords' other game development studios Tantalus, Wicked Witch and Climax Studios on certain of those projects. Forgotten Empires generated revenue of US$7.2m in 2021 and is expected to grow strongly in the current year. Sanderson Design Group 150p £106.5m (SDG.L) The luxury interior design and furnishings group announced that its Harlequin brand has signed a three-year collaboration deal with Sophie Robinson, the interior designer and TV broadcaster known as "the queen of colour" owing to her passion for bright and exuberant interiors. Sophie Robinson, whose popular TV programmes include Channel 5's Dream Home Makeovers, will design and style a capsule collection of wallpapers and fabrics for the Harlequin brand, expected to launch in Spring 2023, using her signature bright colours and bold design. The collaboration marks a further step in the development of the Harlequin brand. The renewed impetus behind the brand began last year with Harlequin's Own the Room campaign and colour quiz, which helps consumers choose colours and designs from four profiles - Rewild, Reflect, Retreat and Renew. All new Harlequin collections are now categorised into these four profiles. Scholium Group 44p £6m (SCHO.L) Trading update for the 12 months ended 31 March 2022 from the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art. Following on from the profitable interim period ended September 2021 the Group has continued to trade profitably for the six months ended 31st March 2022. The Board has taken the decision to close the Mayfair Philatelics business. A provision for any residual costs and charges arising from its closure is expected to be charged to the year-ended 31 March 2022 as a discontinued business expense. The Group remains well capitalised with over £9.3m of stock and cash of £0.7m at 31 March 2022. The Directors expect to release the preliminary statement relating to the results for the year ended 31 March 2022 by the end of August 2022. Xeros Tech Group 32.5p £7.7m (XSG.L) The licensor of proprietary solutions improving the sustainability and economics of the world's clothing and fabrics, today provides an update on the forthcoming domestic market launch in India, by IFB Industries Limited of the world's first Xeros enabled domestic washing machine. Since the end of regional Covid restrictions in India in late Q1, Xeros and IFB teams in Sheffield and Goa have been finalising machine designs and programming bespoke XOrb wash cycles, which improve performance with less water and energy. With these tasks complete, following an initial limited manufacturing run, IFB will soon be moving a number of machines into consumer homes for user testing and launch planning at the end of June 2022. From mid-June 2022 a Xeros team will be in Goa to assist with the initiation of these trials ahead of the full market launch of two sizes of IFB washing machine which is now planned for Q4 2022. This represents a slight delay from the previous guidance of a Q3 launch. Factory testing by both IFB and Xeros has confirmed the significant environmental benefits of Xeros' technology, delivering water savings of up to 50% and, importantly for consumers, clear fabric care benefits are already evident after just a few washes. IFB has re-affirmed its commitment to the launch of their Xeros enabled domestic washing machine in 2022 and is actively working with the Company to achieve this goal. Xeros also confirms that it will release its final results for the year ended 31 December 2021 on Wednesday, 22 June 2022.
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Xeros has reported H1 2021 results for the six-month period up to end June 2021. Revenues are broadly inline but cash is slightly behind expectations due to ramp up in XFiltra investment. These results are not reflective of the longer-term potential of the Group. Despite some inevitable further pandemic-induced delays, commercial progress is encouraging, with the potential of XFiltra looking particularly exciting. We reiterate our 400p/share price target.
Xeros has issued an update relating to the timing of entry to the Indian commercial and domestic laundry markets through its customer in the region, IFB. As expected, IFB has now made its first commercial sale, to Radisson Hotels, with more likely to follow in FY2021. On the domestic side we had assumed IFB would launch during Q4 2021 but, due to significant COVID disruption, this is now looking unlikely. We now assume launch during Q1 2022. We shave off £0.2m from our FY2021 revenue expectations but make no changes to our FY2022 forecasts. Our target price remains unchanged at 400p/share.
Xeros has reported FY results for the year ended December 2020. Revenue and cash position were in line with our expectations but do not reflect the future potential within the group. Commercial progress remains as expected, with the potential of XFiltra looking particularly exciting. We are not materially changing our forecasts and reiterate our 400p price target.
Xeros has raised £8m (gross) to productise the extremely promising XFiltra product and to assist with some pandemic-induced licence slippage.
Xeros has announced interim results for the 6 months to June 2020. This marks a period when the company has completed its transition to an asset-light, IP licensing business model through the disposal of all direct operations. A strong cash position coupled with substantially reduced costs should enable Xeros to reach profitability in H2 FY2022E. Despite COVID, commercial progress is tracking as we would expect. Hence we are not changing forecasts for the current (or future) years and our target price remains 2p/share.
Xeros has announced a placing raising £5.7m (gross) at 0.5p/share to fund the business model through to profitability and cash generation. We have now sensitised our forecasts for COVID19 and expect circa six months delay to projects with Chinese and Indian licensees, but we believe that the impact on the long-term potential of the business and its valuation will be negligible. Our target price is adjusted to 2p/share to take account of the new shares being issued through the placing.
Xeros has developed a polymer-based technology that has been proven to save vast quantities of water in water intensive industries such as garment processing and manufacturing, commercial & domestic laundry. Given that the bulk of these industries are in highly water stressed regions such as India and China, the scope for commercial success is clear. With £130m invested to date, BASF as a supplier and some of Asia’s largest washing machine makers either taking licences or in discussions, Xeros appears to be at the inflection point.
Kaspi.kz, the largest Paym ents, Marketplace and Fintech Ecosystem in Kazakhstan w ith a leading m arket share in each of its key products and services. GDR offering expected Oct 2019. In the first half of 2019, the Company generated total revenue of KZT226,862m (U.S. $598m), up 34% and net income of KZT77,001m (U.S. $203m), up 54%. Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019.
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Bracken Trading — The Group undertakes its main trade of lending as well as electricity generation through the operation of two solar farms. Admission on the 09/09/2019 WORLD HIGH LIFE—The Investment Vehicle is to identify investment opportunities and acquisitions in legal Medicinal Cannabis, Hemp and CBD wellness sectors. The Company has raised £2,398,309 through three issues of Ordinary Shares to private subscribers.
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Jadestone Energy (JSE.TO)—an independent oil and gas production and development company focused on the Asia-Pacific region. Pro-forma production of 13.9 mboe/d, 2P reserves of 45.3 MMboe, and a 2P NPV10 of US$563.7 million . Offer TBA. Current mkt cap C$135m. Due early August. CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
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In a series of upbeat presentations at yesterday’s CMD event, Xeros (XSG LN, not rated) maintained the picture of very considerable opportunities to commercialise their polymer beads technology. The initial focus is in commercial laundry, where momentum of installations is accelerating, followed closely by leather processing, where a second full scale trial has just completed. Such is the apparent added value of the sale, that Xeros is looking to establish business models, which in our view should be attractive to investors. While the domestic laundry development has been deemphasised in favour of leather processing (which frankly always looked more visible), the company hints at plenty of other substantial opportunities to deploy the technology. This continues to look like a most interesting situation.
This week we met the senior management of Xeros. This company is starting to commercialise a technology platform based around polymer bead chemistry. The first application is now a fully-developed, patented, radically different laundry cleaning process, which reduces water and energy usage by c.50%. These attributes are not at the expense of cleaning performance, which is in fact superior. The company has settled on a business model to supply the commercial laundry market, having appointed distributors across North America and set up a simple service package for customers. The second application in leather processing is currently in full scale trials at a commercial tannery where progress is described as encouraging. We await announcements on further applications of the technology in due course.
