WH Ireland: Sector Comment - Dollar earner picks as sterling crumbles

Just over two months on from our “Sector Views” call to buy dollar earners on July 21th, this remains hugely topical with further significant £ weakness and the Bank of England at the time of writing on the back foot following last week's mini-budget. As the “world's currency”, the dollar remains at a multi-year high against a basket of major currencies and above parity with the euro. In terms of sterling, we recommended a selection of dollar buys two months ago when the sterling / dollar rat

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

WH Ireland: Water Intelligence (WATR) - H1 results: strong momentum continues; huge markets, dollar earner

This is another very good set of results from WATR, featuring sales up 44%, which in turn drove a 53% increase in gross profit (a 500bp increase in the margin). WATR supplies in-demand water leak detection and related services across the whole of the US, and also in international markets including the UK and Canada. It operates a strong model which has seen significant double-digit CAGR over a number of years; and this morning's outstanding results reaffirm the company's well-tried approach to

Water Intelligence interim results update

Water Intelligence has released interims that demonstrate continued robust top line momentum and we maintain our FY profit estimates.

WH Ireland: Sector News and Views – Corporate - dollar earner picks in a changing landscape

A year on from the end of lockdown on July 19 2021, celebrations at the UK's economic bounce-back in H2-21 have long lost their fizz. Two intertwined themes have remained salient / gathered pace over the past six months since our mid-year sector review: exchange rates and inflation. As we write today, press speculation is focussing on the possibility of a 0.5% rise in UK interest rates in August, billed as the biggest move in 27 years. Looking further afield, economists are looking to the F

Water Intelligence - Acquisition of Shanahan Plumbing

Water Intelligence has acquired Shanahan Plumbing which adds plumbing operations in the Connecticut and New York areas. The acquisition price is US$0.8m in cash representing a multiple of 4x PBT. The acquisition is consistent with the company's strategy of building out its ancillary adjacent service offering to leverage the customer base generated by its core non-invasive leak detection business as enhanced by its investment in technology to improve scheduling and dispatch efficiency. The transa

WH Ireland: Water Intelligence (WATR) - FY21 results demonstrate momentum in building a strong global company

WATR has delivered further impressive results. Sales up 44% drove gross profit at +57% while PBTA rose 36%. Supplying water leak detection and related services across the whole of the US, and also in international markets including the UK and Canada, WATR continues to grow its business at strong double-digit CAGR rates, while also driving its reacquisition programme at pace and winning further national contracts. In the year the company is reporting, it succeeded in forcefully overcoming the

Water Intelligence - FY21 results – in line, confirms positive view

Water Intelligence reported results for FY21 in line with previous guidance and our forecasts apart from an additional US$1.9m gain in respect of Payment Protection Plan forgiveness. That confirms the rapid growth in revenue, cash flow and profit that execution of the strategy is delivering. The company is well positioned to overcome current market challenges and again noted the recent investment in human capital undertaken to accelerate execution of the growth plan. Water Intelligence expects t

Final results update

Water Intelligence has released its FY21 Results which confirm the robust progress made in 2021.

Water Intelligence - Central Texas deal on highly attractive metrics

Central Texas deal on highly attractive metrics

Water Intelligence - 1Q22 update – investment weighs on profits

Water Intelligence has published a trading update for 1Q22 which confirms continuing strong growth in sales and EBITDA however, statutory profit before tax (PBT) fell YoY, weighed down by one off costs, mainly reflecting investment to accelerate growth ahead of an anticipated much busier 2Q22 and 3Q22. We continue to expect Water Intelligence to generate high rates of profitable growth, which is consistent with the disclosed investment in 1Q22 but the rating is likely to be sensitive to any conc

WH Ireland: Water Intelligence (WATR) - Strong Q1 momentum – YoY sales growth hits 44%; same store sales +26%

WATR has published very strong Q1 revenue numbers this morning, demonstrating that the momentum continues to accelerate on the back of the company's investment, sales initiatives, new sites and last but not least the potent re-acquisition programme. WATR is a US national leader in precision, minimally invasive leak detection and remediation solutions for water, drinking and otherwise, a highly topical market, and beyond this a global player, with operations in a number of international markets.

Q1 Trading Update

Water Intelligence has released a very strong Q1 trading update which firmly underpins our 2022 estimates with significant opportunity to upgrade as we move through the year.

Hybridan Small Cap Feast 05/04/22

Joiners: AdvancedAdvT Limited (ADVT) has been readmitted to the Main Market following the reverse takeover of M&C Saatchi. Leavers: Simigon and Clinigen have left AIM. What’s cooking in the IPO kitchen? First Tin plc, a tin development company with advanced, low capex projects in Germany and Australia, intends to list on the Main Market. First Tin is led by an experienced team of tin specialists, committed to the environmentally sensitive and low carbon development of advanced hard rock tin proj

WH Ireland: Water Intelligence (WATR) - New $US17m facilities; substantial war-chest feeds accretive growth

Following on from last month's very strong update, more good news from WATR, which has expanded its credit facilities to take in an extra $15m plus a 2-year rollover on its working capital facility, or total new facilities of $US17m. A global player, with operations in a number of international markets, WATR is also a national leader in the US in precision, minimally invasive leak detection and remediation solutions for water, drinking and otherwise, a hugely important market in today's world.

ITM Power - Forecast and target price update

Forecast and target price update

LIBERUM: SigmaRoc* - On track & strategic JV

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

Xpediator (XPD LN) - Under new management

XPD has a new management team, only recently appointed. They have a full plate, including fixing underperforming UK warehousing and freight forwarding units, cutting overheads, and improving management of working capital to reduce debt. But there are also some gems in the Group, the core Central & Eastern European (CEE) logistics operations continue to perform strongly despite the turbulence of the War in Ukraine. Hence H1 earnings show a mixed picture with Group revenue up nearly 50% to £189.3m

Invinity Energy Systems - 1H22 results – Investment case strengthens

Invinity announced results for 1H22 to June including a net loss of £11.6m with cash at £16.1m. Results will be weighted to 2H22 as vanadium flow batteries (VFBs) for the Elemental and Yadlamalka projects are shipped. The Base order book doubled and Invinity is focused on closing late-stage commercial deals by YE22. Good progress is being made on the next-generation VFB with Gamesa, now named Mistral. The business case for VFBs is improving as EV demand for lithium-ion batteries squeezes availab

LIBERUM: SThree* - Strong Q3 leads to another upgrade

LIBERUM: Judges Scientific* - Geotek drives FY upgrades

EQTE - Heads of Terms toward Sale of Deeside Project

Heads of Terms toward Sale of Deeside Project

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

In-line results, robust outlook

Despite ongoing supply chain disruption, the Group has reported results in-line with expectation. Adjusted EBITDA from continuing operations improved slightly to £12.7m with the Energy divisions growing by c.15%. Increased investment in the Medical division and the pivot away from 3rd party component manufacture resulted in an offsetting c.£1.5m EBITDA movement. The Group enters FY2023 with a robust order book that already provides 90% coverage for FY23E and 45% for FY24E. Our EBITDA forecasts r

SIMEC Atlantis Energy* - MeyGen tidal turbine redeployment

MeyGen tidal turbine redeployment

H1: robust commercial traction; cost pressures to ease in H2

Directa Plus has reported its interim results, which have been well trailed. Revenues increased by 39%, while EBITDA losses were contained to €1.3m (PY: €0.9m). The robust sales performance can be attributed to mgmt.’s proven ability to convert commercial opportunities as the interest in graphene continues to grow. This prompts us to leave our revenue growth forecasts unchanged, noting the significant upside potential should the DCTA win the Setcar contract. The challenging environment/inflation

EQTEC - Deeside Sale Terms Agreed

EQTEC continues to deliver on its strategy of realising value from its development projects and focusing on the delivery of its proprietary gasification technology. The agreement to sell Deeside for £15m represents value in our view and adjusting our forecasts for the transaction raises our central case valuation to 3.4p from 3.2p.

Invinity Energy Systems - Interims Show Growing Opportunities

Invinity’s interim results show the company moving forward whilst executing on a sizeable delivery backlog and also focusing on near term opportunities. We see a macro outlook that is increasingly supportive of long duration storage technologies that can be deployed easily and rapidly to deliver energy security in decarbonising grids. In this environment Invinity’s relationships with US Vanadium and the potential embodied within Project Mistral are encouraging.

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.