Leclanché - Termination of coverage

Edison Investment Research is terminating coverage on Carclo (CAR) and Leclanché (LECN). Please note you should no longer rely on any previous research or estimates for these companies. All forecasts should now be considered redundant.

Leclanché - Powering electric trucks and buses

Leclanché has launched a modular, off-the-shelf battery system for deployment in pure-play electric and hybrid trucks and buses. This product introduction is in response to strong demand from potential customers for an off-the-shelf solution because having a standard, pre-qualified system shortens factory lead times and results in a significantly reduced pack price. Our estimates remain under review until there is greater clarity on the business reorganisation outlined in our October note.

Leclanché - Construction commenced on St. Kitts project

Leclanché has announced that construction has begun on the St. Kitts project. This project consists of a fully integrated 35.7MW solar farm and 45.7MWh battery storage facility deploying Leclanché’s proprietary energy management system software. The project will be the largest in the Caribbean and Leclanché’s largest project so far. It will also be the first project where Leclanché adopts a build, own and operate (BOO) model. Our estimates remain under review until there is greater clarity on th

Leclanché - Awaiting completion of financing activities

Leclanché’s H120 results show strong growth in revenues for marine applications. Together with an order book of over CHF90m for delivery between 2020 and 2022, this demonstrates demand for the group’s energy storage systems. However, management needs to secure financing to progress the transformational stationary energy storage project on St Kitts and expand its cell manufacturing capability to fully take advantage of opportunities in the e-Transport segment. Our estimates and valuation remain u

Leclanché - Delay to formation of cell manufacturing JV

Leclanché is not proceeding with the agreements with Eneris announced in June to create two JVs: one manufacturing battery cells, the other assembling battery modules. Instead it is in discussions with key customers as well as Eneris to form a JV manufacturing up to 2.4GWh of battery cells annually. Our estimates remain under review until there is greater visibility regarding this JV.

Leclanché - Formation of JVs with Eneris for gigafactory

Leclanché has accepted a binding conditional offer from Eneris Group, a Polish company dedicated to environmental protection, to create two JVs: one manufacturing battery cells, the other assembling battery modules. The transaction gives the group the finance it needs for capacity expansion and to fully fund its business plan until mid-2021 without dilution to shareholders as it works through an order book of over CHF90m (excluding the St Kitts project). Our estimates remain under review until t

Leclanché - Shift to build-own-operate model proposed

Initial data on Leclanché’s FY19 performance shows the adverse impact of delays to the St Kitts stationary energy storage project and suspension of cell manufacturing during August which caused deliveries in the e-mobility segment to be delayed. The order book for delivery during FY20 and FY21 exceeds CHF90m, excluding the St Kitts project which management now intends to build under a ‘build-own-operate’ (BOO) model. Our estimates remain under review until there is greater visibility regarding t

Leclanché - Convertible loan from Yorkville Advisors

Leclanché has announced an agreement with US-based investment company Yorkville Advisors for a convertible loan facility of up to US$40m (c CHF39m). FEFAM, Leclanché’s majority holder and long-term backer, has also agreed to provide a CHF25m working capital financing convertible facility. Our estimates remain under review until there is greater visibility regarding the St Kitts battery energy storage project.

Leclanché - Convertible loan from Yorkville Advisors

Leclanché has announced an agreement with US-based investment company Yorkville Advisors for a convertible loan facility of up to US$40m (c CHF39m). FEFAM, Leclanché’s majority holder and long-term backer, has also agreed to provide a CHF25m working capital financing convertible facility. Our estimates remain under review until there is greater visibility regarding the St Kitts battery energy storage project.

Leclanché - Order book exceeds CHF100m

Leclanché’s H119 performance was adversely affected by delays in completing financing for the St Kitts project. Management had expected construction to start in Q219 but it has been pushed back to Q419. Given the scale of this project, which is the largest the company has undertaken to date, our estimates remain under review until there is greater visibility on when different phases of the project are scheduled to complete. We note that this project pushes the order book above CHF100m, with an a

Leclanché - Powering the world’s largest electric ferry

Leclanché has announced that Ellen, the world’s largest all-electric ferry, for which it provided a 4.3MWh customised lithium-ion battery system, has made its first commercial voyage. This is a key application area for the company, with an estimated 50MWh of orders for marine applications contracted for delivery in FY19 and FY20. Our estimates remain under review until there is greater visibility on when different phases of the St Kitt’s battery energy storage project are scheduled to complete.

Leclanché - Major project in Caribbean

Leclanché has announced that it is working with the state-owned St. Kitts Electric Company (SKELEC) to build a solar generation plus storage project on the island of St. Kitts. Combining a 35.6MW solar farm and 44.2MWh battery storage facility, the project will be the largest in the Caribbean and Leclanché’s largest project so far. Given the scale of this project, our estimates remain under review until there is greater visibility on when different phases of the project are scheduled to complete

Leclanché - Goal of doubling installed base achieved

Management achieved its goal of delivering a cumulative total of 100MWh of operational projects by the end of 2018, thus doubling the installed base and revenues in the space of a year. Near-term growth is underpinned by e-transport programmes, with CHF42m of the CHF60m order book for this sector. We reinstate our estimates and indicative valuation, which is CHF2.16/share.

Supreme (SUP LN) - Record performance, EBITDA ~doubled

Supreme’s FY24 trading update confirms a record performance in the 12 months to 31 March 2024. Organic revenue and profit growth across all four divisions has driven Group revenue +45% YOY to £225m, with FY24 adj. EBITDA almost doubling to ‘at least £38m’, driving record levels of cash generation. Supreme is actively exploring complementary M&A, supported by a debt free balance sheet. Trading on an undemanding FY25 PE of just 6.7x, with a 3.4% yield, we believe downside risks are more than price

Morning Note – 22 April 2024

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Headlam Group - Strategy for growth in tougher market

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Morning Note – 25 April 2024

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Hybridan Small Cap Feast - 24 April 24

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Vianet - FY24 ahead, strategic forecourt customer win

Vianet’s FY24 trading update shows FY24 revenue +1% ahead of our previous forecast, adjusted EBITA +2% ahead, EFCF and net debt +£0.6m ahead, and a strategic new customer win with prominent forecourt operator Wilcomatic. A robust FY25 pipeline and outlook leads us to reiterate our FY25E forecasts at this point, with the update highlighting: strong progress renewing and winning new customers on 3-5 year contracts as they migrate from 3G to Vianet’s advanced 4G LTE solutions; the successful integr

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