Morning Note – 1 June 2022

Morning Note – 12 April 2022

Parsley Box - Placing and open offer: rebooting growth

Parsley Box has announced a proposed equity placing of c.£5.9m and an Open Offer to raise up to £1.1m, both at a price of 20p/share. It plans to use the funds to reboot its growth strategy by focusing on four key areas: customer acquisition and retention, developing the online proposition, launching a membership programme and continuing new product development, both for the shorter and longer term. Directors and related parties intend to subscribe in aggregate for £4.2m; given non-institutional

Morning Note – 22 December 2021

Morning Note – 30 September 2021

Parsley Box - Supply chain disruption

Parsley Box’s unscheduled trading statement has revealed that it has joined the growing list of companies caught by the UK-wide supply chain and logistics contagion. Its key suppliers are unable to meet demand due to staff and product shortages at their factories, delivery is also becoming more problematic and stock availability has reduced to c.50% of plan in recent weeks. This has particularly hurt the launch of the important chilled products lines. We have cut our FY21E revenue forecast by £7

Morning Note – 7 September 2021

Small Cap Feast: 23/07/21

Joiners: Draper Esprit (GROW.L) has moved from AIM to the Main Market Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Northcoders, an independent provider of training programmes for software coding, to join AIM. It offers a range of training and software development solutions to individual and corporate customers. The Company's offering includes 'bootcamp' training courses, government funded apprenticeships and bespoke training courses and software development solutions. The Com

Parsley Box - Tougher short term; longer-term promise remains intact

Parsley Box’s trading statement revealed that it has enjoyed an excellent H1 vs tough prior year comparisons and it continues to make good progress towards deliver the considerable promise that Parsley Box holds: the team has been strengthened with important new hires, and new product development is already feeding through to the website with an exciting range of new chilled products to still come. However, new customer recruitment is proving to be a little weaker than expected as the UK unlocks

Morning Note – 19 July 2021

Small Cap Feast: 17/06/21

What’s cooking in the IPO kitchen? Poolbeg, Proposed AIM listing and demerger from Open Orphan (ORPH.L). Funds raised as part of Admission will be used primarily to fund the clinical trial costs associated with the development of the Company’s POLB 001 asset as a treatment for severe influenza and to acquire and develop new portfolio assets. Offer details and timing TBA Wise, the Fintech and payments start-up is planning to pull the trigger on a direct listing on the London Stock Exchange as s

Morning Note – 13 May 2021

Parsley Box - Hungry for growth

We initiate coverage of Parsley Box with a 220p share price target, implying 14% potential upside. Parsley Box is a small, dynamic, fast-growing company that delivers quality ambient ready meals direct to its customers, targeting the growing number of older and wealthy people in the UK. We expect Parsley Box to break into EBITDA profit and be cash-generative in 2022 and to grow rapidly thereafter. We would expect the valuation discount will narrow as it continues to deliver.

Finals, ahead of expectations

Volex has delivered final results that are ahead of expectation. Organic revenue growth of 19% reflects growing customer demand, alongside a particularly strong performance in EV which saw sales almost double. The Group has demonstrated its ability to manage both supply chain challenges and inflationary cost increases, albeit with a short time lag. Recent acquisitions have integrated well, building exposure to attractive higher growth market segments. The Group’s global footprint has resonated w

AFC Energy (AFC LN) - Kier agreement

AFC has signed an agreement with another leading UK construction/infrastructure player, this time in Kier Group. We believe this further endorses our long term thesis that AFC will play an active role in encouraging the transition away from diesel-fuelled temporary power solutions. We believe its technology could help the sector make clear strides towards a net zero future, which has to commence now if they are to reach this target by 2045. The share price has been weak of late (in line with man

AFC Energy (AFC LN) - A year of deployment

Interim results from AFC contain few surprises and the group remains on track for the full year. The two main deltas versus our (unpublished) forecast were that the £2m stage payment from ABB were treated as deferred income rather than as revenue and that income from R&D tax credits was below our estimate. The first issue is an accounting issue which has no bearing on cash flow, while the second is likely a timing issue. On its own, the tax issue explains why period end cash, at £48.6m, was £1m

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

ITM Power - Trading update

Trading update

Spectra Systems Update

Spectra Systems Corp (SPSY.L), a global leader in machine readable high speed banknote authentication, brand protection and gaming security technologies, recently announced a further expansion of its sensor development phase contract with a central bank customer. The amendment, related to expanding the flexibility of use for the new generation of sensors, is worth an extra $2m and will be phased over the next three years and results in forecast upgrades at the top and bottom lines.

SHORE CAPITAL - Judges Scientific (JDG) - House Stock at 6860p

Hybridan Small Cap Feast 28/06/2022

Joiners: No Joiners Today. Leavers: Raven Property Group has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req

SIMEC Atlantis - A Clear Path Forward

SIMEC Atlantis’ full year statement and in particular its going concern statement show that financial risks remain following the decision not to proceed with the Uskmouth conversion. Yet the company has created a path through these risks with the creation of the 240MW Uskmouth battery project and further opportunities at the MeyGen tidal stream project. With MeyGen seeing the immediate benefit of an additional turbine in the water we see the current year as being a better one for the company.

Symphony Environmental (SYM LN) - Supply agreement with major customer

SYM has announced an exclusive supply agreement for its d2p (designed-to-protect) antimicrobial technology with a major customer. Grupo Bimbo (NASDAQ: BIMBOA) is one of the largest bread manufacturers globally. The company has conducted extensive trials of d2p for its plastic bread packaging, with the aim of extending the life of products, improving hygiene, and reducing waste. The company has asked SYM to supply d2p for its nominated bread packaging manufacturers across the American continent f

Powerhouse Energy - Full Year Results Reflect Progress

Powerhouse’s full-year results reinforce a picture of strong progress with considerable development of both the company and initial waste to hydrogen projects using the DMG technology. This is reflected financially, and cash burn is manageable with £9.8m of cash at the period end.

Hybridan Small Cap Feast 22/06/2022

Dish of the day Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety p

Roadmap to significant profit growth

With a clear roadmap of new digital inkjet products and an ambitious management team focused on gaining (or retaining) significant market shares across the segments that make up its $1bn addressable market, Xaar is positioned to grow strongly. Management has already demonstrated its abilities in turning the business around, and we believe it is far from clear that the share price fully reflects the opportunities ahead.

Judges Scientific (JDG) – Acquisition of minority shareholding in Bordeaux

The shares now trade on 24.3x FY2022E earnings, versus a peer group trading on a blended 24.9x. Judges' shares more than regained their composure in early 2022, before events in Ukraine and continued Covid concerns (notably China) weighed on sentiment. As a result, some treading of water is likely in our view. But given the strength of the business (we believe earnings risk is towards the upside) and balance sheet, the quality of earnings and the company's continued ability to execute deals on s

ATOME Energy - Capacity Expansion in Paraguay

ATOME’s trading update shows capacity expansion in Paraguay and good progress across the portfolio. The new capacity adds 50MW to take the Itaipu project to 300MW and increases our central case valuation to 183p from 173p.