Hybridan Monthly, 1 April 2025
Market Comment: For a special April edition of Hybridan’s “view from the broker’s desk”, we are delighted to be joined by Judith MacKenzie, Partner and Head of Downing Fund Managers.
Judith founded Downing Fund Managers in 2010, the boutique investment arm of Downing LLP.
Prior to this, Judith was a partner at Acuity Capital managing AIM-quoted VCT and IHT investments and a small-cap activist fund. Judith spent nine years as a senior investment manager with Aberdeen Asset Management Growth Capital as Co-Fund Manager of the five Aberdeen VCT’s, focusing on technology and media investments in both listed and private companies. Judith is Chair of the Quoted Companies Alliance and is an active member on boards both in the private and public arenas.
Niall, Hybridan: Hi Judith, thank you for you very much for joining us. We hear lots at the coal face from the buyside around “compliance led fund management.” In a nutshell, to be able to service any potential redemptions, fund managers are “steered” into larger and more liquid companies making the sub £50m market cap arena even more lonely – what’s your view on this?
Judith, Downing: Sadly I agree. Regulation, which is overseen by a Fund’s ACD (effectively the Board), dictates that any redemptions must be met by selling pro-rata across the portfolio at the same time on the day. As we all know, even liquid companies can sometimes be illiquid on a bad day, therefore this regulation forces the Managers to sell, no matter what. We have to ‘model’ these liquidity scenarios and if the computer says ‘no’, that liquidity across the portfolio would not be achievable, then there is pressure from the ACD/ Oversight Committees that questions whether positions that are less liquid, should be held. This puts undue pressure on the Fund Manager and in many cases precludes holding of positions that may deliver great value and are in the interests of shareholders.
I couldn’t put it better than the way you have described it “Compliance led fund management” – apart from the fact that we are very lucky in that our Compliance and Risk Dept are not soulless uncommercial beasts; they understand the nonsense of it and lobby hard to get this changed and pragmatism is put into the process. It’s still grim though. I do think that there is a mismatch between open-ended funds that are daily traded and the asset class. Investment trusts are long term committed capital and suit these mandates, but again here we are in a 15-20 year cycle where investment trusts are out of favour, particularly smaller ones, as trust buyers are now largely the wealth managers who have all bought each other and consolidated, and are therefore too big to buy assets that are anything but large too! But the private shareholders are fighting back – and buying cheap investment trusts and doing well. I think there will be a shareholder revolt at some point when wealth managers get uncloaked because investors find out they have all been investing in the same companies and therefore pushing up valuations to crazy levels. So there is hope!
Niall, Hybridan: If this new direction in fund management continues, wouldn’t more money into the system such as the proposed pension reform be directed towards larger AIM companies with a market cap of £100m, rather than the micro-cap constituents who are in desperate need of institutional investment?
Judith, Downing: Possibly. We all have a job to do here on education for the majority of pension funds, who have not had exposure to small and micro-cap for over 10 years. Pension funds by their nature are long term captive investors. The fixation post Woodford on liquidity needs to be remedied. As a part of a portfolio, micro-caps are very appropriate for long term capital. So our view is that an allocation to a Manager from a pension fund for a £150m- £250m ‘packet’ of micro-caps is ideal for pension funds. And what a time to invest! We have heard rumours of a £1.2bn allocation to smaller and mid-cap UK companies from an LGPS, by this I mean a Local Government Pension Scheme. This is great news – and will filter down to micro-cap. Other pension funds are following this trend so I am really keen that we as an industry help educate the LGPS pension fund buyers as they are a smart bunch and are on receive.
Niall, Hybridan: Companies under £50m market cap get a lot of flak for being “sub scale”. With EIS/VCT investors unable to fund acquisitions and many institutions not allowed to invest under £50m or larger market cap, a lot of these companies feel stuck – what would be your message to the management of these companies?
Judith, Downing: Communicate. Not in the way that you may be used to. Because at the moment the sound bite is key. Investors in sub £50m tend to be private investors in the main – and institutional investors are fickle beasts and like a succinct message. Don’t depend on a presentation deck, do a quick elevator pitch to camera for your website, post it on LinkedIn. Learn how to be dynamic and engaged on the Investor Meet Company platform. Listen to your advisers. As regards institutions, don’t give up as I am certain that inflows will reach the minnow/micro caps, but your messaging needs to be succinct. And, if you don’t invest in your own business, don’t expect us to. ‘Skin in the Game’ is the best sign of a committed management team.
Niall, Hybridan: In a market where investors are craving for instant returns and value investing is out of favour, is there enough demand for patient capital investing strategies which underpin small cap investment?
Judith, Downing: Related to the comment on Pension Fund investment in the sector above, although it is not happening quickly enough, I can see that the weight of monies that can be invested in small cap from these mandates could positively influence the market. Already we are seeing allocators move away from the US Mag 7 into Europe, and given the UKs cheap valuations it isn’t going to take much to influence markets positively. As we have seen in previous downturns, once buyers return to the market, there is a contagion effect and sentiment can turn to the positive very quickly. Ideally, I would like this to be happening in months though, not calendar years – and that’s why companies and investors need to keep the political lobbying as a priority, hence my involvement with the Quoted Companies Alliance.
Niall, Hybridan: How can PLC and private equity investors work more harmoniously together to ensure the market gets a consistent healthy IPO pipeline and private equity gets a partial profitable exit on listing?
Judith, Downing: I’ve been in this industry for 30 years now and I won’t try to solve this one. It’s like dogs and cats. Sometimes we get along, then at some point the dog makes chase, or the cat takes a swipe at the face of the dog. We are not going to have a harmonious relationship. So we have to work out how to be in the same room, not on the same sofa but just in the same room. Now I am going to take that swipe! PE has benefitted from years of low interest rates and their gear it up-truss-management-teams-up-like-chickens model is running out of roadmap given interest rates are not going back to where they have been over the last 7 years. The portfolios are ripe, and they need to move companies on because of their own funds realisation/liquidity requirements, therefore we do need to work together and be in the same room. The public market advisers and investors would welcome greater relationship with PE – particularly through the BVCA. We also need PE funds that view the listing as part of the investment journey, not as an exit. I won’t buy off private equity. They have more knowledge as they sit on the Board or own debt and have covenants. They don’t leave value on the table for the next investor. They become a stock overhang from day one despite all the honest promises before they take our ££. The best behaved are the private investor networks that are well established like Kelvin Capital and others in that flock.
Niall, Hybridan: If you were Chancellor for the day, what would you do to get the excitement back into small cap investing?
Judith, Downing: That is simple!
1. I would mandate a percentage of UK employers pension funds to be allocated to the UK, close to the historical norms of the last 20 years. But it needs to be mandated, not guidance.
2. I would insist that of the tax benefit given via ISAs, a minimum of 30% should be invested in UK listed companies.
3. At the same time I would change the ISA rules to ensure that cash ISAs could only hold 10% cash, the balance having to be invested.
4. I would ensure that the changes in Pension Regulation to be implemented through the course of this year would allow look-through reliefs for AIM stocks and Business Relief.
5. I would also reassure AIM investors by ‘locking in’ the commitment that BR would not be changed on AIM in the same way that HMT did for EIS and VCT. Investors like reassurance so they can be long term investors.
If I had two days, I would put the UK market on a level playing field with international markets and abolish stamp duty.
Opinions expressed represent the views of the fund manager at the time of publication, are subject to change, and should not be interpreted as investment advice
By Niall Pearson, with Judith MacKenzie from Downing LLP
Company Newsflow:
ABDX Feeling Better
CYAN Connection Made
Abingdon Healthcare 6.5p £12.3m (ABDX.L)
|
Price |
Results |
Top 3 Shareholders |
Value |
|
6-7p |
Year End: June, Results expected in October |
Octopus Investments Limited 10.1% |
Business Development |
|
Spread: 8.3% |
|
Cannacord Genuity Group Inc 9.7% |
H1 pain leading to H2 gain |
|
52 week High/Low: 11.75p /6.25p |
Interims to December, Interims expected in March |
Mercia Asset Management9.3% |
US lab operational in April 2025 |
Source: Alpha Terminal, and Company Website at https://www.abingdonhealth.com/
The business is expanding from manufacturing and distributing the latest lateral flow- tests technology. Abingdon Healthcare acquired a regulatory service Compliance Solutions company for up to £3.2m in cash and shares, with £0.7m cash on completion, followed by three equal payments of £0.22m. It is also investing in a US facility to provide manufacturing services to contract development and manufacturing organisations.
The Interims to December 2024 were reported in March and financial progress was mixed. The key event was raising £5.2m net in August 2024 at 9.75p for the acquisition and to accelerate organic growth. Interim revenue increased 28% to £3.1m, but the Operating loss widened to £3.2m from losses of £2.7m in H123, and the adjusted EBITDA loss was £1.9m up from £1.2m. This is a result of investments made in the growth initiatives which included the launch of three Boots own-label tests: Vitamin D, Iron (Ferritin), and Saliva Pregnancy.
An improved EBITDA performance is expected in H2 as key revenue milestones are passed, such as the £0.5m order win by recently acquired Compliance Solutions. A US commercial office and laboratory is being opened and expected to become fully operational in April 2025. This will support the substantial potential US commercial pipeline where pregnancy and ovulation tests are set to be launched in Q1 2026.
In December, there were a couple of contracts impacting on H2, including a $2m performance evaluation, regulatory services, and clinical testing of four sexually transmitted diseases. A grant of approximately £0.8m was awarded as part of total project funding of EUR 5m to develop a new intervention for malaria elimination.
Abingdon is confident of meeting market expectations for revenue of £8.6m for FY June 2025, with a positive EBITDA of approximately £1.5m. Management has suggested, and we agree looking at the numbers, that the net cash of £3.4m should be sufficient to reach a cashflow positive position in 2026.
Hybridan Comment: The price fall since the placing at 9.75p seems to ignore the positive developments.
Cyanconnode Holdings 12.95p £45.00m (CYAN.L)
|
Price |
Results |
Top 3 Shareholders |
Value |
|
12.7-13.2p |
Year End: March Results expected in June |
Axia Investments 13.01% |
Cash Runway |
|
Spread: 6.0% |
Interims to September, Interims expected in November |
Premier Miton Group 9.53% |
Strong H2 |
|
52 week High/Low: 14.75p /7.4p |
|
Herald Investment Management 6.92% |
Break-even |
Source: Alpha Terminal, and Company Website at https://cyanconnode.com/
Funds were raised in September 2024, primarily to fund the smart metering market roll-out. In an oversubscribed placing, £5.5m was raised at 9p which can be added to the Interims cash of £3.3m. Cyan’s Indian subsidiary, DigiSmart Networks, qualified last year as an Advance Metering Infrastructure Service Provider, so it can bid directly for large-scale smart metering tenders in India.
Over the years, Cyanconnode has designed and developed Narrowband RF mesh networks that enable Internet of Things (IoT) communications. It is used to provide customers with long-range, low-power, end-to-end networking solutions, in high-performance applications such as Smart Meters. These are being fitted by Indian Utilities and others to enhance service delivery, improve business efficiency, save energy, and reduce fraud.
The Interims order book doubled to 13.1 million units. The backlog stands at 9.7 million units to be deployed, and a significant portion of this is expected for delivery H2 FY March 2025. Historically, the revenue recognition is heavily weighted toward the final quarter as order completions and deployments peak. This seasonal trend is expected to have continued, with a substantial proportion of revenue materialising in Q4. In March its 13% shareholder, Axia Investments Ltd, provided a £5m unsecured loan to help secure near term high-value contracts.
The Interim revenue to September 2024 was little changed at £5.6m, with an operating loss of £2.2m, but the expectations have been set for a significant increase in H2 revenue. The gross margins are reported to have improved considerably compared to H1 with the development of a new, lower cost gateway. After losses of £4.3m for FY March 2024, expectations are for break-even to FY March 2025.
Hybridan Comment: After false starts, and disappointment, Cyanconnode could benefit from the substantial Indian investments.
House Report: News from a house stock
Physiomics 0.435p £1.32m (PYC.L)*
Physiomics is an oncology consultancy that develops empirical or semi-mechanistic models to support the development of cancer drugs and treatment regimens from late discovery to phase 1 and phase 2 clinical trials. The Interims to December 2024 (H1-25) showed a 12% reduction in revenue to £329k and a 5.5% increase in Operating loss to £249k. This is in-line with the trading update, which anticipates a potential 33% increase in revenue for the Y/E June 2025 to £750k and a small reduction in Operating losses to £650k. Funds from a £0.5m placing at 5p in February 2025, along with the Interims cash balance of £269k, will support the expansion plans.
A Head of Quantitative Pharmacology and Data Science was appointed to help expand services and the market reach and accelerate the sales pipeline conversion. The strategy is to broaden its services into Biostatistics Solutions and Personalised Dosing as well as developing into areas such as Antibody Drug Conjugates.
Hybridan Comment: The stronger H2 revenue is driven by contracts that have already been signed, and the slightly lower operating losses reflect better gross margins despite the continued investment in building new revenue streams.
Updates/Events:
Chesterfield Special Cylinders Holdings 33p £12.8m (CSC.L)
CSC, the former Pressure Technology, has been awarded its first contract to supply large-scale hydrogen storage systems to a ground-breaking UK clean energy project. The contract is to supply pressurised hydrogen storage systems to the Aberdeen Hydrogen Hub project, a joint venture with Aberdeen City Council. Utilising ultra-large Type 1 steel cylinder packages designed and manufactured by CSC, the hub will feature integrated hydrogen production, buffer storage and distribution facilities, using electricity generated locally by a dedicated solar power plant. CSC will commence manufacturing in Q3 2025, and the finished systems will be delivered to the project in early 2026.
Further hydrogen contract awards are anticipated within H1 2025 which underpin expected hydrogen revenues for CSC in FY25 and beyond. Pressure Tech was disposed of for an initial enterprise value of £6.2m.
Hybridan Comment: The shares have barely changed since our Hybridan November Monthly report at 34p, despite the corporate development and likelihood of further defence and hydrogen contracts.
Trufin 78p £82.7m (TRU.L)
This holding Company of an operating group comprising three growth-focused technology businesses: early payment provision, invoice finance, and the high-flying games publishing. Its FY December 2024 results reported a 203% jump in Gross Revenue to £55m, and an Adjusted EBITDA profit of £7.6m from a £3.5m loss in FY23. The PBT increased to £0.9m against a £6.6m loss, but with a Tax credit of £3.3m, the EPS is 4.2p with FY cash of £14.9m.
These results were driven by its games publishing company Playstack Ltd, which grew revenue by more than 455% to £44.6m, after releasing two hit games: Balatro and Abiotic Factor. The division’s EBITDA increased 2,146% to £11.3m. Playstack also won the “Best UK Publisher” award in March 2025 and plans to release seven additional titles during 2025. The Board is reconsidering the strategy with investing in its subsidiaries, making targeted acquisitions, and exploring other ways to maximise shareholder returns.
Hybridan Comment: The tax assisted P/E of 18x is not cheap and while there is a possibility that its other games will be an equal or greater success, it is a good thing that the Board is considering diversification strategies.
In the news in April
Northcoders 119p £9.6m (CODE.L)
Finals will be reported to December 2024 on 23rd April. Northcoders provides training programmes for software coding and a range of technology training. There is a hybrid delivery model by providing its services through a combination of in person training, at regional hubs (Manchester & Leeds), and through digital training. Recent contract wins were announced on 1 April with the Skipton Building Society and a three-month contract extension with Manchester Airports Group, both for digital training consultancy. Northcoders is hoping for increased Government spending to establish ‘Skills England’ and strengthen Further Education and may in anticipation expand its bootcamps. The FY Dec 24 trading update reported trading to be to be in line with market expectations for a 24% increase in revenue to £8.8m benefiting from demand for digital training. Expectations are set for profits of £0.5m, compared to a loss of £1m, which gives an EPS of 6p for a prospective P/E of 20x. There is net cash £0.75m and a new facility agreed with NatWest for £1.5m.
Hybridan Comment: The rating is relatively high given the short-term uncertainty
but we are sufficiently interested to keep an eye on it.
* A corporate client of Hybridan LLP
** Share prices, market capitalisations, and top 3 Shareholders all reported as at the close on 31 March 2025
By Jon Levinson
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Status of this Master Investor Purposed Newsletter, Disclaimer and Disclosures
- Disclaimer for companies mentioned with whom Hybridan does not have a corporate advisory relationship
This document has been provided as a general market commentary and is prepared 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 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 an action. The information has been provided without taking into account the investment objective, financial situation or needs of any particular person. 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.
As market commentary, this document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis. It is not subject to any prohibition on dealing ahead of the dissemination of investment research although Hybridan LLP maintains related internal systems and controls in connection with such dealing.
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.
This document is not intended to be an invitation or inducement to engage in investment activity. 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 categorised by Hybridan LLP as either a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) (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 avoidance of doubt, 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.
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. The information may contain projections or other forward-looking statements regarding future events, targets or expectations. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. 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.
References to specific securities, asset classes and financial markets are for illustrative purposes only. Past performance is no guarantee of future results. Information and opinions presented have been obtained or derived from sources which Hybridan LLP reasonably believed to be reliable however 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.
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 losses arising in any way from use of all or any part of the information in this document including, for the avoidance of doubt, direct or indirect or consequential loss or damage (including lost profits).
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 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.
- Disclaimer for companies mentioned with whom Hybridan has a corporate advisory relationship
Where Hybridan refers to companies that it is a retained adviser to, Hybridan marks this clearly with an *
This document should not be relied upon as being an impartial or objective assessment of the subject matter and does not constitute independent investment research for the purposes of the Conduct of Business Sourcebook (“COBS”) issued by the Financial Conduct Authority (“FCA”) to reflect the requirements of the UK retained version of Regulation 600/2014/EU (the “MIFID II Regulation”) and the UK retained version of Directive 2014/65/EU (the “MIFID II Directive”) and all rules made in connection therewith (together, known as “MIFID II”). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector. As a consequence, the research (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research under MIFID II; and (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research (although Hybridan does
impose restrictions on personal account dealing in the run up to publishing research as set out in our Conflicts of Interest Policy).
This document has been issued by Hybridan LLP as a marketing communication 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. Hybridan LLP and/or connected persons may, from time to time, effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. The information contained herein is based on materials and sources that we believe to be reliable, however, Hybridan LLP makes no representation or warranty, either express or implied, in relation to the accuracy, completeness or reliability of the information contained herein. Opinions expressed are our current opinions as of the date appearing on this material only. Any opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. None of Hybridan LLP, its affiliates or employees shall have any liability whatsoever for any indirect or consequential loss or damage arising from any use of this document.
This document is not intended to be an invitation or inducement to engage in investment activity. In the United Kingdom, this report is directed at and is for distribution only to persons who (i) fall within article 19(1) (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 Promotions) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are categorised by Hybridan LLP as either a professional client or eligible counterparty (as those terms are defined in COBS (issued by the FCA) (all such persons together being referred to as “relevant persons”). This report must not be acted on or relied upon by persons in the United Kingdom who are not relevant persons.
Neither this report, nor any copy or part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this report comes should inform him or herself about and observe any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of securities laws in the United Kingdom, the United States (or any part thereof) or any other jurisdiction in any other part of the world.
The methodology and underlying assumptions used to either evaluate a financial instrument or an issuer shall, where relevant, be included (with information as to where any more detailed information can be found) in the substance of this note.
Investments in general involve some degree of risk, including the risk of capital loss. The services, securities and investments discussed in this document may not be available to or suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor. Past performance is not necessarily a guide to future performance and an investor may not get back the amount originally invested. Where investment is made in currencies other than the investor’s base currency, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Levels and bases for taxation may change. When Hybridan LLP comments on AIM or AQSE Exchange shares investors should be aware that because the rules for those markets are less demanding than the Official List of the London Stock Exchange the risks are higher. Furthermore, the marketability of these shares is often restricted.
Hybridan LLP is authorised and regulated by the FCA and is a member of the London Stock Exchange.
Issuers may be permitted to review investment analysts’ investment research prior to publication for review of factual accuracy only – all opinions expressed are our own. Investment research prepared by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is categorised as a retail client under COBS.
Investment analyst certification: All research is issued under the regulatory oversight of Hybridan LLP. Each investment analyst of Hybridan LLP whose name appears as the author of this research hereby certifies that the opinions expressed in such research accurately reflect the investment analyst’s personal and objective views about any and all of the companies or the Company discussed herein that are within such investment analyst’s coverage universe.
The investment analyst who is responsible for the preparation of any commentary on companies that Hybridan advises is Jonathan (Jon) Levinson, who is an employee of Hybridan.
Conflicts of Interest: Hybridan LLP is involved in providing other financial services to companies it includes in this note that it is a retained adviser to and, as a result, Hybridan LLP may have responsibilities to the Company which conflict with the interests of the persons who receive this document.
Hybridan LLP and/or its associated companies 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.
Hybridan, its partners, officers or employees or any connected persons may at the time of publication have an interest in the equity of the Company through the holding of warrants, securities, futures, options, derivatives, and any other financial instrument of any of the companies referred to in this document. Hybridan at the time of publication currently has no interest of this nature in the Company discussed herein. If exercised such interest would not be required to be notified as it would comprise less than 3% of the Company’s issued share capital. Hybridan reserves the right to increase or dispose of this interest and/or the underlying shares resulting from exercise, without further notice. Any disposal or acquisition of warrants or shares will be undertaken under the FCA Disclosure Guidance and Transparency Rules Sourcebook.
No recommendations: In line with our conflicts of interest policy Hybridan LLP does not produce “buy” or “sell” recommendations or publish target prices on companies who are corporate clients of Hybridan LLP.
MIFID II status of Hybridan LLP research: The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
Unless otherwise stated, Hybridan LLP owns the intellectual property rights and any other rights in this document. 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.
This document should be 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 categorised as either a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) (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 avoidance of doubt, 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. A full disclaimer and set of disclosures are made at the end of this report.