Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LB-Shell. We currently have 24 research reports from 4 professional analysts.
Edison Investment Research is terminating coverage on Intelligent Energy Holdings (IEH). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
City of London Group (COLG) - Sch 1—RTO of Milton Homes Limited, an equity release provider which has a UK residential property portfolio of 586 properties with a market value of approximately £77 million as at 30 June 2017. Offer TBA. Due 5 Oct | Springfield Properties—Scottish housebuilder. Intention to float. Offer TBA “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.” | Warehouse REIT - The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas. The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 percent. for the year ending 31 March 2019. Issue price 100p. Offer raising £150m at £1 with market cap of £166m. Due 20 Sep | OnTheMarket—Intention to float on AIM to raise c. £50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. |People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance. | Charter Court Financial Services Group—Intention to float. Specialist lender serving the UK residential mortgage market. The net mortgage loan book stood at £4.4 billion as at 30 June 2017 growing at a compound annual growth rate of 92 percent since 31 December 2014. Part vendor sale and £20m primary raise. | ContourGlobal LP—Report on Bloomberg that the thermal energy power generator is considering a London listing. | Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 Sep.
Companies: EEP SCE JDG EKT BGO SWL EYE PCA LBP RBW
Intelligent Energy’s interims were in line with the guidance given at the AGM in March. The results demonstrate that management has succeeded in reducing cash burn to its stated target of c £1.6m/month. It intends to bring the group to a cash break-even position within the next two years through volume roll-out of standard air-cooled products. Project wins during the period indicate there is appetite for Intelligent Energy’s fuel cell stacks in the target markets, although we note that additional funding will be required to support this process. We leave our estimates unchanged.
During H117, Intelligent Energy was reshaped to focus on driving sales of commercially ready B2B products. The group has won contracts in two of its three target segments: stationary power and drones, withdrawn from its Indian energy management business and realised substantial cost savings. However, product roll-out has been slower than originally anticipated, with management in financing discussions with key convertible loan note holders and we have reduced our estimates.
Intelligent Energy (IEH) has announced a deal to supply 600 low-power 1kW fuel-cell modules to US-based Luxfer-GTM Technologies for integration into Luxfer-GTM’s Zero-Set Lite portable light towers. The contract, the value of which has not been disclosed, underpins our assumption of £5.0m product sales during FY17, so we leave our estimates unchanged.
Intelligent Energy (IEH) has announced that the deal to acquire the Energy Management Business of GTL will not now be consummated. The move leaves management free to concentrate on driving sales of commercially ready B2B products, which is a key element of its strategy. We adjust our FY17e revenue estimate while leaving our pre-exceptional losses and cash-flow forecasts unchanged.
Intelligent Energy (IEH) has developed a high power density fuel cell technology suitable for use in multiple sectors. The group has an excellent record of providing technology for automotive companies, most notably for the Suzuki Burgman electric scooter. Under its revised strategy, it is focusing on near-term opportunities to deliver products for deployment in distributed power generation, UAV and consumer electronics applications to drive revenue growth during the years before mainstream adoption of fuel cell vehicles. We reintroduce our estimates to reflect the new strategy.
Intelligent Energy (“IE”) announced this morning that due to unexpected developments with various parties in its funding discussions, the company will not be completing its funding process by the end of Q1 2016 as stated to, and expected by, the market. In light of this announcement, and due to the impact of the uncertainty around funding on IE’s growth prospects, we have suspended our forecasts until the funding situation is resolved and we receive clarity on IE’s future growth potential.
Intelligent Energy’s AGM statement notes significant progress since the commencement of FY16 with regard to executing its operational strategy and securing the funding required to fully realize the value of its innovative fuel cell technology.
To coincide with the date of its AGM, Intelligent Energy (“IE”) released a business update to the market this morning. It was reassuring in that there were no surprises, and it confirmed that the company is where it said it would be with respect to business execution, cost reduction, cash position and critically progression of funding. There was perhaps an expectation in certain areas of the market that the funding process would have concluded by the time of the AGM, however, the company has always maintained an end of Q1 2016 timeframe and this remains the position. Operationally IE is executing well. Highlights are a growing number of IE power units going into the field and delivering clean and reliable power to GTL’s Indian telecom towers as IE demonstrates successful servicing of the GTL contract, and a £5.25m joint development agreement with an emerging smartphone OEM in the consumer electronics division. The one new piece of information in the statement was that discussions for an upfront license payment of £10m are at an advanced stage; the division this is in was not disclosed. The company has succeeded in implementing its cost reduction program, with cash balance at the end of January at £17.4m and underlying cash burn reduced to below £3.5m/month. This cash position brings into focus why the market is currently heavily focused on IE’s funding activities.
Intelligent Energy (IEH) has signed a joint development agreement (JDA) with an emerging smartphone OEM. The announcement shows the group is making rapid progress on executing its operational strategy while management proceeds with completing its financing programme. In January, management noted that good progress was being made towards completing both phases of the financing programme by the end of calendar Q116, as originally indicated.
Intelligent Energy (“IE”) announced it has signed a £5.25m Joint Development Agreement with a smartphone OEM this morning. The deal follows on from the letter of intent (“LOI”) with same OEM announced on 30th November 2015. The rapid progression from LOI to a full commercial contract in a little over 2 months is impressive, and is testament to both the world-class nature of IE’s platform and the deal making capability of management. The OEM is looking to embed IE’s fuel-cell platform into its own smartphone platform, initially for a specific application, as a permanent solution to the current and growing issue of battery life. As the market focuses almost exclusively on IE’s funding situation, this is an important reminder that the underlying business continues to progress; delivering on stated strategic objectives in all three of its divisions of motive, distributed power and generation (”DP&G”) and, in this case, consumer electronics (“CE”). The deal fits perfectly with IE’s strategy to move the CE division over to a B2B licensing model, very similar to the motive division, where the customer fully or partially funds development costs and then takes the end product to market. The majority of IE’s JDA costs will be absorbed by its existing platform support function, and the deal will deliver a healthy cash margin. Due to the relatively modest size of the deal compared to the GTL deal in DP&G, and the fact that it was expected that IE would execute such deals as part of its CE strategy, we leave our numbers unchanged.
In October 2015, Intelligent Energy (“IE”) announced a transformational £1.2bn revenue, 10 year telco tower energy management deal with Indian telco GTL. It is the largest deal announced by any fuel-cell company globally to date, and will over time see the scale deployment of IE’s fuel-cell system in both primary and back-up power modes across c.70% of GTL’s c. 27,400 Indian telco tower sites. Since beginning the deployment of fuel cell units on a limited number of GTL sites, IE’s Asian subsidiary Essential Energy (”EE”) has successfully increased the up-time of the telecom towers to circa 100%, solving a significant structural and operational issue. EE has delivered 10MWh of carbon-free lectricity to date, and in doing so has removed 55 tons of harmful CO2 from the environment that would have been released by the diesel generators IE’s platform has replaced. This announcement is a reminder that IE’s technology platform is proven in the field at scale, and is well capable of transforming the energy management of not just GTL’s Indian Telco towers estate (which accounts for circa 6% of the Indian market) but the whole Indian telco market.
Anglo American | Anglo Pacific | Capital Drilling | Intelligent Energy | Lonmin PLC | Noricum Gold | PolyMet | Stellar Diamonds | Tri-Star Resources
Companies: AAL APF CAPD LBP NMG POM LMI STEL TSG
In October, Intelligent Energy (“IE”) announced a transformational £1.2bn revenue, 10 year telco tower energy management deal with Indian telco GTL. It is the largest deal announced by any fuel-cell company globally to date, and will over time see the scale deployment of IE’s fuel-cell system in both primary and back-up power modes across c.70% of GTL’s c. 27,400 Indian telco tower sites. It was announced that the deal had been signed and would complete in Q1 2016, subject to a number of market norm conditions, of which receiving regulatory clearance from the Indian competition commission was a key one. Today’s announcement confirms that the deal has received clearance as was expected, and we look for deal completion to follow in the near-term.
Research Tree provides access to ongoing research coverage, media content and regulatory news on LB-Shell. We currently have 24 research reports from 4 professional analysts.
|14Jan19 14:00||RNS||Price Monitoring Extension|
|13Dec18 16:09||RNS||Director/PDMR Shareholding|
|10Dec18 11:12||RNS||Intention to Delist|
|21Aug18 13:13||RNS||Half-year Report|
|27Jun18 11:03||RNS||Holding(s) in Company|
In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.
Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF
Empyrean Energy has provided an update on its upcoming drilling programme in the Duyung PSC, offshore Indonesia, where the Company holds an 8.5% working interest. The two well campaign includes the Tambak-1 exploration/appraisal well, designed to appraise the central part of the Mako field and test the deeper 250Bcf Tambak prospect and the Tambak-2 appraisal well, designed as a 13.5km step out from the existing Mako South-1 gas well. Success at Tambak-2 would potentially convert some of the 392Bcf of 3C resources into 2C resources, which we value at a risked US$20.2m or 3.8p per share net to Empyrean (2C resources: US$13.6m or 2.5p per share). At a net cost of US$553-723k, the upcoming drilling campaign has the potential to deliver significant shareholder value with the minimal amount of capital expenditure. We maintain our BUY recommendation and our 33p price target.
Companies: Empyrean Energy
1H19 production of 3,539 boe/d had already been reported, as had net cash of US$11.2 mm at the end of June 2019. 2019 production and capex guidance are unchanged. In Egypt, the central processing facility is en route to site at South Disouq, thus achieving the second of the three key project milestones. The final milestone of first gas in 4Q19 remains on track, subject to the successful installation and hook-up of the CPF, which is scheduled to begin later in August, with the company still aiming for gross plateau production of c.50 mmcf/d by 1Q20.
Companies: Sdx Energy
The Borgland Dolphin semi-submersible drilling rig has completed its acceptance testing. It is commencing move preparations today and is expected to begin transit shortly thereafter towards the Liberator field where it will initiate drilling operations.
Companies: I3 Energy
Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.
Companies: OPM ALU ANCR BLV CONN CRC FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM
ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m· IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019
Companies: SRT CHH VELA CREO ASH MIRA ECO AQX ARCM DRV
Yesterday, Diversified Gas & Oil (DGOC) released its 2019 interim results. H1/19 production averaged 76,000boepd, up 292% YoY and 22% from H2/18. June exit rate production exceeded 90,200boepd following the addition of c20,000boepd from the HG Energy acquisition, in line with our forecast FY2019 production figure of 82,700boepd. Net debt as of 30 June 2019 was US$613m, having paid US$52m in credit facility principal payments, with a further US$19.2m being returned to shareholders through the Company's share buyback programme. In lieu of the headwinds around the commodity prices, we have reduced our long-term NGL price forecast, reducing our 2019 EBITDA from US$308m to US$278m and our target price from 161p/share to 157p/share.
Companies: Diversified Gas & Oil
Aura has now completed its feasibility Study into producing uranium (and potentially vanadium) from its Tiris deposit in Mauritania. The outcome was a viable project which is scalable, has a low All-In-Sustaining-Cost (AISC) cost at $30/lb U3O8 (compared with global peers) and most importantly has a low capital cost at $63m – particularly important in today’s unsteady capital market environment. We are firmly of the opinion that Tiris is a company maker for Aura as it moves along the next steps of optimisation and funding with a view at this stage to commission end 2020 / beginning 2021 – perfectly timed for what we perceive as a potential inflection point in the uranium price and a move to higher prices. We see additional value in Aura, we believe currently unrecognised in the market, with the large battery-metal Häggån project in Sweden and some prime greenstone belts in Mauritania which are (in our view) highly prospective for gold and base metals as limited prior exploration has shown. We currently see fair value in Aura at 3.2p/sh.
Companies: Aura Energy
88 Energy has signed a Sales and Purchase Agreement (SPA) with Premier Oil PLC (Premier), through which Premier will farm into the Western Play Fairway at Project Icewine. Under the SPA, Premier will earn a 60% operated interest by paying the full cost of the Charlie-1 appraisal well, up to a cap of US$23m, with an option to earn an additional 50% working interest on success in the Central or Eastern play fairways by spending a further US$15m. The Charlie-1 well is expected to be drilled and tested during Q1/20, penetrating multiple stacked horizons and potentially de-risking a large part of the conventional portfolio at Project Icewine. 88 Energy will retain a meaningful 30% working interest within the Western Play Fairway, containing net mean prospective resources of 720mmbls. We update our model, reducing 88 Energy's working interest across the Western Play Fairway, whilst increasing the chance of success across the Charlie-1 prospects. We reduce our price target to 2.6p (from 3.1p) and reiterate our BUY recommendation.
Companies: 88 Energy
We are updating our note on Getech to incorporate the 2018 actuals and 12 month figures to 31 December 2017 (restated due to a change in year end). Since our last update a month ago, the shares have fallen ~15% despite in line results (including 11% y-o-y revenue growth and 32% expansion in profit) and a recovering oil price (Brent +5% approx) which provides further long-term support for Getech’s products and services. Rolling our valuation thesis forward one year, our estimate of fair value for the shares stands at 42.5p (page 17). Getech is lean and mean and highly operationally geared to further improvements in the top line.
Companies: Getech Group
Thanks to material iron ore price tailwinds, Rio Tinto managed to deliver a healthy set of H1 results, despite various other issues. Moreover, by leveraging its balance sheet, the group announced record interim dividends of $3.5bn. While iron ore is (and is likely to remain) a cash cow, all eyes are now pinned on how the copper and aluminium divisions perform/recover in the coming years. After a strong ytd run-up, buying on (macro-driven) share price corrections should be apt entry opportunities.
Companies: Rio Tinto
Sirius announced this morning it has suspended its bond issue until market conditions have stabilised. The bond was due to price this week, but has coincided with an escalation in the China/US trade war, a devaulation of the RMB through 7 and a smaller than anticipated cut in the Fed funds rate which combined to drive a sharp equity/commodity sell off and risk-off in high-yield markets.
Companies: Sirius Minerals
On Friday, Empyrean Energy announced its annual results for FY19, in which it made significant progress across its diversified portfolio. In doing so, the Company has laid the foundations for what could be a transformational 12-18 months. We believe the near-term exploration and appraisal drilling of Mako in Indonesia, combined with the huge potential upside of the Jade and Topaz prospects, offshore China, make for a compelling investment case. We update our model to take into consideration the recent headwinds around the commodity prices, whilst increasing the risking at the Company's non-core projects at Riverbend and the Eagle Oil Pool, we maintain our 33p price target.
Companies: Empyrean Energy