Hybridan Small Cap Feast - 17 April 24

17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day 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

Zeus Building Products and Construction Round-Up - 3 May 2024

Market sentiment turned more cautious in the month of April, particularly regarding interest rates, with economic data producing mixed results. Despite housing transactions and net mortgage approvals continuing an upward trend, with the latter at an 18-month high and +20.1% YoY and +1.4% MoM to 61.3k (seasonally adjusted), Nationwide’s House Price Index dropped 0.4% MoM (seasonally adjusted) in April, below the +0.2% expected. This comes as mortgage lenders nudge rates up to factor in the potent

Cornerstone FS+ (CSFS, House Stock at 27p) - Strong close to FY23F, another beat

Domino's Pizza - Growing the base

Domino’s Pizza Group’s (DOM’s) new CEO has set an ambitious long-term growth target, including an acceleration in its net store opening programme. With better alignment between the company and its franchisees, management believes DOM should be capable of generating improved profit growth, versus that achieved in recent years, and potential higher returns.

Cornerstone FS+ (CSFS, House Stock at 30p) - Canada regulatory licence obtained

ME Group - Modernising and growing the estate driving growth

During 2023, ME Group commenced the deployment of its next generation photobooths, which are integrated with the group’s newly developed proprietary software, gained market leadership in the Japanese photobooth market with an acquisition, continued to roll out laundry units with existing and new location partners, commenced a share buyback programme and gained entry into the FTSE 250. 2023 was a year of significant strategic and financial progress, with sales up 15%, EPS up 31% and net cash main

SP Angel Technology: Cornerstone FS (CSFS.LN) - Positioned for LT Growth

CSFS reported its financial results for the year ended 31 December 2022 with revenue of £4.8m and adj. EBITDA of £(0.87)m. This is in line with the Trading Update provided Jan 2022, but ahead of expectations for the year.

Rapid innovation within very tight parameters

Photo-Me is something of a paradox – although it is a £600m market cap business, it still operates as if it were a nascent entrepreneurial business. It is risk averse and yet highly innovative. Its strength derives from the interaction between three core capabilities - building durable relationships with retail site owners, strong management of technology and product development, and delivery of operational logistics excellence. This note describes the Group’s positioning, and the core investmen

Japan ID scheme drives upgrade

Launch of Irish ID photobooths

Management has announced plans to launch 300 encrypted ID photobooths in partnership with the Irish government. While the agreement will have a negligible impact on our forecasts, this is far outweighed by the strategic value in strengthening the group’s position as a leading operator of integrated security-based applications.

UK acquisition

The group has announced an agreement to acquire a digital photo and merchandising business for up to £6m phased over a number of years. The deal is scheduled to complete in October and is not expected to have a material impact on forecasts in the short term. Our forecasts remain unchanged ahead of completion.

Shopping Trolley

There is a brave new retail landscape, and who would wish to be a retailer? Consumers are breaking the mould, mobile Internet is transforming shopping behaviour globally, everyone is aspiring to create the principal relationship with the consumer and there will be more retail casualties on the horizon. Those that stand the best chance of survival will be able to 1) accept the certainty of uncertainty 2) be prepared to widen the risk envelope 3) be constantly vigilant to new entrants 4) champion

Photo-Me - Entering a new, large market

Photo-Me has acquired 96% of Sempa, a manufacturer of commercialised fresh fruit vending equipment, based in France. The net cash consideration is €11.6m, and Sempa reported sales of €9.4m and PBT of €3.7m in 2018, meaning the group has paid an attractive 3.1x PBT. We have upgraded our FY 2020E EPS by 6% and we now forecast net cash of £10m at April 2019. We reiterate our view that the 10% dividend yield supported by a net cash balance should continue to provide good support for the shares that

Cenkos: One Media iP Group Plc -- Trading in line with expectations

One Media iP (OMiP) has released a robust FY21E trading update, with Adj EBITDA of £1.65m; slightly below our forecast of £1.8m, owing to it taking a little longer to deploy cash raised on acquisitions of new royalty assets, and adverse foreign exchange movements. The company ended the period with £0.7m of net cash (vs our forecast of £0.3m of net debt), leaving further financial resources available for acquisitions heading into FY22E. Applying a conservative 8x Net Publisher Share (NPS) multipl

ME Group - Price rises and increased usage driving growth

ME Group has reported a strong set of H1 results with sales up +25%, adj. PBT +68%, adj. EPS +60% and ongoing DPS +14%. The strongest performances were in photobooths in Europe, which benefited from price rises and increased volumes, and laundry in the UK, where there was a +11% increase in the number of machines. This progress was achieved despite a near flat installed base in photobooths, with the anticipated roll-out of next generation photobooths delayed due to supply delays, and a steady in