Hybridan Small Cap Feast - 1 August 2024

1st August 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: I(X) Net Zero (IX.L) has left AIM. 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

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

PROGRESSIVE: Aferian: H1 23: Improved visibility and earnings quality

Aferian’s H1 23 results (to 31 May) demonstrate significant improvements in both revenue visibility and earnings quality. The group continues to deliver impressive growth in software revenues, which now contribute 60% of sales. Annual Recurring Revenue (ARR) once again reached record levels, driving improved revenue quality and visibility. The release signals management’s confidence in the full-year outlook, with net debt forecast to have peaked and improved performance from the devices business

PROGRESSIVE: Aferian: $4m placing, FY23E guidance reiterated

Aferian has successfully concluded the placing of 26m new ordinary shares at a price of 12p/share, raising $4.0m before expenses. The proceeds are to be used for general working capital purposes, replacing the need for further drawdown of the group’s shareholder loan from Kestrel Partners. Aferian has also confirmed that trading remains in line with its update from 28 June, and management has reiterated FY23E guidance. Overall, we view these announcements as positive for the group and investor s

Small Cap Feast 25 07 2023

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in

PROGRESSIVE: Aferian: Trading in line; forecasts reintroduced

Aferian’s update yesterday, for the six months to May 2023, confirmed that trading remains in line with comments provided in the 31 May commentary. With demand in the 24i business remaining strong, earnings quality and visibility continue to improve. Furthermore, the release signals management’s expectation of a return to growth (sequentially) in devices in H2 23. The cost base has been significantly reduced, and the release also confirms that the group remains in compliance with its banking cov

PROGRESSIVE: Aferian: Trading in-line, additional funding secured

Aferian’s update, released today, signals that group trading remains broadly in line with commentary in the FY22 results announcement. 24i’s (software) solutions continue to see strong demand, offset by the market-driven challenges facing the Amino (devices) division. In mitigation, management has identified an additional c.$3m of annualised cost savings and remains confident in Amino’s ‘strong’ medium-term sales pipeline. The update also confirms that the group remains in compliance with covena

PROGRESSIVE: Aferian: Record software performance; hardware challenges persist but may be abating

Aferian’s FY22 results release heralded a record performance from the software business, while confirming that market conditions in the Amino (devices) segment remain challenging. With the increasing contribution from software, Aferian’s revenue quality and visibility continues to improve. Commentary on the outlook is positive towards 24i, and the business has been restructured to address ongoing challenges in devices. Guidance of FY23 group revenue and EBITDA being significantly below FY22 leve

PROGRESSIVE: Aferian: Hardware-related headwinds persist

Aferian on Friday provided an update on current trading, reaffirming the previous commentary around the FY22 outcome and describing strong early momentum in FY23 for the 24i (software) business. However, customer destocking in the Amino (devices) business has been more prolonged than previously expected and previously signalled. Management now expects FY23 revenue and adjusted EBITDA to be ‘substantially below its original expectations’. We withdraw our FY23 estimates in advance of further det

Hybridan Small Cap Feast - 10 Mar 23

10 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 objectiv

Hybridan Small Cap Feast 20/12/2022

Joiners: No joiners today. Leavers: PCF Group has left AIM. What’s cooking in the IPO kitchen?** Quetzal Capital, to be renamed Tap Global Group, intends to join the AQSE Growth Market. Tap Global is an innovative and fully integrated provider of crypto settlement and fiat banking. It provides its customers with access to several major crypto exchanges through Tap Global’s app, allowing them to purchase up to 15 crypto assets and store them directly in the customer’s wallet. Tap Global also offe

PROGRESSIVE: Aferian: A strong end to FY22

Aferian has released a positive update on trading for the year ending November 2022. The group finished the year in line with the Board’s recently-lowered expectations, with FY22 revenue now expected to be approximately $91m, with record levels of ARR and a stronger-than-expected cash balance. Management reiterated its expectation of reporting adjusted EBIT in the $7.8m-$8.8m guidance range. We leave estimates unchanged ahead of the full results announcement due in February, and continue to beli

Hybridan Small Cap Feast 24/10/22

Joiners: Eastinco Mining (ATN.L) has joined AIM. Leavers: Ted Baker has left the London Stock Exchange. What’s cooking in the IPO kitchen?** Ithaca Energy, a UK independent exploration and production company focused on the UK North Sea, intends to join the Premium Segment of the Main Market. Ithaca Energy is one of the largest independent oil and gas companies in the UKCS, ranking 2nd by resources and 3rd by production. During the six months ended 30 June 2022, Ithaca Energy's average daily prod

PROGRESSIVE: Aferian: Customer de-stocking hits device shipments

Aferian has this morning given a trading update for the year to 30 November 2022. Revenue and profit will both be impacted by a shortfall within the devices business as customers reduce inventory levels, ironically due to an easing of concerns over supply chain logistics. We reduce our estimates for both FY22E and FY23E following the announcement. The group has also announced that it has been in discussions around a ‘significant acquisition opportunity’, which has been aborted.

Aferian: Strong software performance, abating headwinds in devices

Aferian’s H1 22 results show a strong performance from the software business, plus signs that headwinds impacting the devices business may be abating. This performance was accompanied by record exit Annual Recurring Revenue (ARR), driving improved revenue quality and visibility. Both business units continue to report strong operational progress, and management commentary on the outlook for the second half is positive. We revise estimates following the announcement and continue to believe t

Altitude Group (ALT LN) - Delivering on high growth strategy

Altitude’s FY24 results, flagged in a trading update last week, confirmed strong growth in revenue, adjusted EBITDA and adjusted EPS. We remain confident in the Group continuing its fast growth, based on strong momentum seen in Merchanting in Q1 FY25. Reflective of the evolving business profile, we have updated our model assumptions, adjusting revenue slightly, improving margins and lowering tax charges, which leaves adjusted EBITDA unchanged and, importantly for investors, increases adjusted EP

Telematics and fleet management: Microlise vs. Quartix Technologies

The UK AIM market has three quoted commercial vehicle tracking businesses: Microlise Group (SAAS), Quartix Technologies (QTX); and Trakm8 Holdings (TRAK). This note focusses on the larger two, Microlise and Quartix, initiating research coverage on each and comparing respective business models, strategy, growth opportunities and valuation. Whilst the businesses generally target different parts of the market, our conclusion is that Quartix offers better near-term value, cash returns and ROCE, whil

Hardman & Co Monthly: October 2024

Feature article: Labour’s first Budget - Investors in their sights? Summary ► Budgets are always important for investors. ► The imminent Budget, at the end of October, will be doubly so, because it is the first from the new Labour government, and it has already signalled the need to fill an alleged £22bn black hole, while ruling out changes to more than half the tax base. That implies a lot of the pain will be felt by investors. ► This paper considers the impact of increases in rates for th

Morning Note – 30 September 2024

Pinewood Technologies (PINE LN) - Full speed ahead

Pinewood Technologies’ H1 results, its first as a standalone SaaS business, show that the Group is putting the building blocks in place for its accelerated growth plan. New UK Lithia sites are being added, product and sales team investment is being made, and the discovery and planning stages of the US rollout are underway. Management is confident in meeting full year market expectations (£7.8m underlying PBT for the 11 month FY24 period), so our underlying P&L estimates are unchanged. We reiter

Neuromorphic Computing Industry Research October 2024

This report looks at the neuromorphic computing industry. Neuromorphic Computing systems are designed to specifically mimic the human brain. The report talks about the overall market size, expected growth rates as well current trends driving the growth in the industry. Companies can also be categorized as core and non-core, the former being those that exclusively engage in neuromorphic computing solutions and those for which neuromorphic computing is just one part of their overall product or ser

Morning Note – 6 August 2024

Super sizing it

LIBERUM: 1Spatial: Walk the talk and get SaaSy

Zeus Industrials Round-Up - 13 September 2024

The UK industrial sector continues to show promising signs of recovery, with manufacturing PMI reaching a 26-month high of 52.5 in August as all survey indicators but one expanded. Economic data has also been encouraging, with UK pay growth cooling to a two-year low and inflation rising only slightly in July – supporting the case for further interest rate cuts this year by the BoE.

Allenby Capital TMT Update - 09.09.24 - ENSI.L, CPX.L, TERN.L, CHSS.L, ELEG.L, CNC.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Morning Note – 20 June 2024

Morning Note – 25 July 2024

Morning Note – 14 August 2024

Morning Note – 29 August 2024