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.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.