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.

Renold - Strong end to FY24: EPS up 11%. Robust FY25: EPS up 27.6%

The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme

Q1 Operating Results

Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k

Billington Holdings - Record result boosts dividend; forecasts upgraded

FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively

Morning Note – 16 April 2024

Plant Health Care - China distribution with AMVAC

Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car

Morning Note – 15 April 2024

discoverIE - Back to organic growth

discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli

Severfield - Multiple positives should excite investors

Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear

Warns on brine supply costs

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

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

LIBERUM: Severfield: Erratum: Better EPS and cashflow, and buyback

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

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