Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EUROPLASMA. We currently have 4 research reports from 1 professional analysts.
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Continuing cash drain in 2016 to stop by 2017? (Europlasma)
05 Nov 16
Continuing cash drain in 2016 to stop by 2017? EPS CHANGE CHANGE IN EPS2016 : € -0.12 vs -0.06 ns 2017 : € 0.02 vs 0.02 -20.8% 2016 FY earnings now allow for the heavy losses recorded over H1 in the Power business. H2 figures will be in the same vein but suffer on top from a 2-month plant stoppage at the asbestos treatment unit. In all, the expected 2016 loss has been doubled but visibility was extremely weak in the first place. The cash drain is expected to end in 2017 when the first green power production unit is up and working. CHANGE IN NAV€ 0.62 vs 0.66 -4.90% Our NAV erodes due to cash consumption. The number of shares allow for all the dilution associated with existing or agreed upon financing. CHANGE IN DCF€ 0.85 vs 0.89 -4.35% The DCF is impacted by the cash consumption as well as the delays in cash flow generation from the asbestos treatment unit.
Cash drain continues by H1, ends by 2017 ?
05 Nov 16
Europlasma released a set of figures for H1 16 that can only be acceptable because management confirmed that the cash drain will subside soon. Sales are down €1.2m to €5.7m, EBITDA is flat at a negative €5m and the net loss is about €-9m (a €+0.7m improvement) so that shareholders’ funds stand now in the red at €-5.2m while net debt tops €10.8m from €5.7m. The primary cash consumer, Europlasma’s power generation unit, is actually making serious progress towards being declared “good to go” for the end of this year. This will de facto be applicable to the pipe line of power projects which will change Europlasma’s profile for the best. In spite of its cash consumption, the tiny group is liquid thanks to access to a convertible line that will nevertheless bite into common shareholders’ share of the firm if the cash drain is not stemmed by 2017.
Pain still the 2016 order of the day (Europlasma)
26 Sep 16
Pain still the 2016 order of the day TARGET CHANGE CHANGE IN TARGET PRICE€ 0.62 vs 1.23 -49.6% The sharp drop in target price combines the hard reality of 2015 which recorded another major loss and the 2016 own set of problems, including the dilutive costs of equity financing rounds. The H2 performance of the core project - waste to power - is pointing to a "worst behind" status. CHANGE IN EPS2016 : € -0.06 vs 0.05 ns 2017 : € 0.02 vs 0.09 -73.5% 2016 was not expected to be a great year but hopes of a bottom line breakeven have been dashed by a 2-month stop in the asbestos processing unit leading to group net loss expectations. 2017 and 2018 figures are extremely fragile as they are built on an "old" business model that may be rethought in the next few quarters. CHANGE IN NAV€ 0.66 vs 1.40 -53.1% Our NAV tries to recognise the value of the 4-year old efforts in putting together a waste to power prototype unit that will spin five sister projects and more. It obviously depends on continuing financing which has been achieved to date. This is at a great dilution cost. CHANGE IN DCF€ 0.89 vs 1.93 -54.0% A DCF primarily embarks on the long-term cash flows of power generation. It is a fragile computation as it is a distant proposition, dependent on the business model and suffers from the full dilution costs.
Liquidity sorted and good revenues on non-energy businesses
09 Mar 16
Europlasma posted €14.1m in revenues for 2015, up 57% on an admittedly painful previous year when a newly-appointed management had to deal with delayed sales, massive losses and a very weak balance sheet. The small energy group in the making has also organised for an extra €10m of fresh financing (“equity line”) to see it through the protracted completion of its prototype energy unit, CHO Power.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management