Accsys Technologies - Arnhem expansion completed but Hull delayed

Accsys’s trading update included positive news on the commercial start of the fourth reactor in Arnhem and good progress with construction of the Accoya plant in America for production in Q224. However, this was overshadowed by a larger than expected volume decline in the first five months of FY23 (due to previously reported shutdowns) and more delays and cost overruns in the construction of the Tricoya plant in Hull. We have lowered our estimates and increased the company’s risk profile, result

Accsys Technologies - Updating estimates for FY22 results

With its FY22 results at the end of June, Accsys provided guidance for FY23 to almost double EBITDA, mainly driven by new capacity. To fulfil the strong market demand for its high-performance wood products, Accsys aims to expand its capacity from 60,000m3 to 200,000m3 by 2025. However, the current two capacity expansions of 60,000m3 in total faced difficulties during commissioning, resulting in delays of a few months. We have lowered our estimates, incorporated prudent cost buffers for future pr

Accsys Technologies - Additional capacity comes at additional costs

To fulfil the ongoing strong market demand for its high-performance wood products, Accsys aims to expand its total processing capacity from 60,000m3 currently to 200,000m3 by 2025, with 60,000m3 coming on stream in the next three months. Construction delays in Arnhem and working capital needs were the main reasons for the €19m capital rise on 25 May 2022. We have updated our model and raised our revenue estimates, mainly to include the effect of higher pricing, but have lowered our profitability

Accsys Technologies - FY22 guidance reaffirmed, €19m net capital raise

Accsys continues to see strong demand for its high-performance wood products. With demand outstripping capacity, its stated strategy is to expand its total processing capacity from 60,000m3 currently to 200,000m3 by 2025. The group has reaffirmed guidance for FY22, consensus EBITDA is currently €10.4m and adjusted PBT is €1.2m. Driving this performance is price. With volumes flat due to capacity constraints and plant downtimes, which was covered in our March 2022 site visit note, Accoya revenues

Hybridan Small Cap Feast 25/05/22

Joiners: No Joiners Today. Leavers: Clipper Logistics has left the Main Market following a Cash takeover. What’s cooking in the IPO kitchen? According to news reports, The Very Group, is looking to float after calling off their plan for a £4bn IPO last year due to a volatile market. The ecommerce group is owned by the Barclays family. According to the Sunday Times, the retailer has offered incentives to senior leaders at the firm for pulling off a flotation, which the Barclays family now hope to

Hybridan Small Cap Feast 04/03/2022

Joiners: More Acquisitions (TMOR.L) has joined the Main Market (standard) raising £1.2m. The Company was formed to undertake one or more acquisitions of a majority interest in a company or business. Any such acquisition undertaken by the Company will be treated as a reverse takeover for the purposes of Chapter 5 of the Listing Rules. The directors intend to search initially for acquisition opportunities in the energy transition sector. Energy transition refers to the global energy sector's shift

Accsys Technologies - Capacity expansion on track

Accsys has a stated strategy to expand its total processing capacity from 60,000m3 currently to 200,000m3 by 2025. Reported progress at Arnhem – which we visited recently – and Hull with a new US facility also given the green light, represent significant waypoints on this plan which is very much on track. Given strong market demand, we see no reason to change our primary assumptions for FY22 or subsequent years at this stage.

Accsys Technologies - Growing and investing

Ongoing strong demand remains encouraging for Accsys and investment to support future growth is also an indicator of confidence in the outlook, in our view. The broader strategic plan – including well-flagged and material capacity expansion – is intact and our earnings expectations are materially as before. Accsys is at a key business development stage and poised to enter a significant earnings growth phase.

Small Cap Feast 05/10/2021

Joiners No joiners today. Leavers No leavers today What’s cooking in the IPO kitchen? Bens Creek Group to join Aim. Bens Creek, together with its subsidiaries, will, on Admission, own and operate a metallurgical coal mine located on 10,000 acres in the southern part of the state of West Virginia and eastern edge of the Commonwealth of Kentucky, in the central Appalachian Basin of the eastern United States of America. The Mine's operations are located primarily in Mingo County, West Virginia. The

Accsys Technologies - Building on strong foundations

A well-established and profitable market presence generated from the Arnhem Accoya facility represents a springboard for Accsys to bring new facilities and revenues on stream. In reinstating estimates, we also provide a framework for investors to appraise expected completion of the nascent Hull Tricoya operation and a prospective new US facility. These are both material developments and provide Accsys with the opportunity to generate significantly higher earnings.

Small Cap Feast: 23/08/21

While we were away…. ….Joiners 5 new ones over last 3 weeks: Yooma Wellness Inc (AQSE: YOOM), a global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands, announces it has joined the AQSE Growth Market. Yooma, together with its European deal coordinator, Chrystal Capital Partners LLP, have raised gross proceeds of GBP7.5m , at a price of C$0.90 (£0.5232) per share. Lorne Abony, Chairman of Yooma, said: "Yooma's listing on the AQSE provides

Small Cap Feast

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor

Accsys Technologies - Solid progress from solid wood

Accoya wood progress in FY20 to date continues to validate the business model and expansion undertaken last year. The new Tricoya project is also progressing albeit with commissioning slipping by some months into H2 calendar 2020. Our existing model accommodates these effects and we have made no changes save for adding FY22 estimates for the first time. For now, on our unchanged estimates, we continue to contend that the current valuation is underpinned by Accoya.

Accsys Technologies - EBITDA milestone achieved, Hull build delay

FY19 performance at the Arnhem Accoya facility has been robust with successful delivery of higher volumes from raised capacity. Construction delays at the new Hull Tricoya facility outside Accsys’s control are a near-term frustration and dampen EBITDA progression over our forecast horizon. That said, achieving a positive group EBITDA outturn in FY19 is a significant milestone. The current valuation is underpinned by Arnhem.

Accsys Technologies - Moving to EBITDA positive

Accsys continues to make positive progress and is now generating revenue from its latest investment at Arnhem. We expect the new, under-construction Tricoya facility to follow suit within the next year, at which point annual group revenue potential will be around €150m according to management. In the near term, we expect to see an EBITDA positive outturn in FY19.

Invinity Energy Systems - Get with the V-flow

Invinity is commercialising its leading vanadium flow battery (VFB) technology into a market growing at over 40% pa. Invinity's VS3 battery is already competitive with an enhanced product under development. Revenue is set to quintuple this year and, on our forecasts, continues to grow rapidly with gross margins of 30-40% generating a net profit from 2026. Assuming the sales pipeline crystallises, Invinity could be fully funded through to net free cash generation. The stock has been harshly treat

ITM Power - Forecast and target price update

Forecast and target price update

UK Energy Package - Energy Package Impacts on Clean Energy

UK Prime Minster Liz Truss has outlined a package to offset the impact of high gas prices on the UK electorate. While a lot of the initiatives focus on household bills, a number have a direct impact on clean energy companies. We see the amendment of the Renewables Obligation with a CfD mechanism as potentially de-risking for clean energy companies. Commitment to energy export is positive for hydrogen and e-fuel producers and the confirmation of no windfall tax is a relief for larger clean energy

ITM Power - Repositioning

ITM’s full year results statement showed a company repositioning itself in the face of supply chain and other macro issues, and also moving towards a more managed roll out of capacity focused on delivery. While this results in a reduction in our forecasts it is also feels like a more sustainable position and in the longer run result in a company more able to take on the considerable opportunities that are developing in the market.

LIBERUM: SigmaRoc* - On track & strategic JV

Somero Enterprises - Interim results – trading in line with FY22 expectations

Interim results show a resilient performance, with price increases offsetting cost inflation. Three of the group’s five regions saw growth. North American operations remained robust, with strong momentum continuing in Australia, while new products contributed $3.2m to growth. The Board confirms existing guidance and as such is on track to be in line with our forecasts for FY22. We retain our 808p price target, with the sterling valuation assisted by recent dollar strength.

LIBERUM: Yü Group* - More upgrades and stand-out cheap – even in this market

LIBERUM: Luceco* - On track for 2022 expectations

LIBERUM: SThree* - Strong Q3 leads to another upgrade

SHORE CAPITAL - Crestchic^ (LAOD) - House Stock at 274p

LIBERUM: Judges Scientific* - Geotek drives FY upgrades

SIMEC Atlantis Energy* - MeyGen tidal turbine redeployment

MeyGen tidal turbine redeployment

Water Intelligence - 1H22 interims, amending TP, reiterate Buy

Water Intelligence reported a strong increase in revenues for 1H22 but that did not translate into profits which were held back by a sharp increase in other administrative costs. We understand that cost trajectory should flatten in 2H22 which, together with an increase in our revenue forecasts, means we maintain our EPS forecasts. The revenue performance underscores the strength of the growth story but given current market conditions and the need for Water Intelligence to demonstrate bottom line

SHORE CAPITAL - Mpac Group+ (MPAC, House Stock at 305p)

EQTEC - Rationalisation at Southport

Rationalisation of project ownership at the Southport Hybrid Energy Park allows EQTEC to avoid major capital commitment while still benefiting from development services income, and helps to accelerate development of the project which, in Phase 2, will include EQTEC gasification technology.