EQTEC - USA Contract Win

EQTEC has announced a contract win in Hawaii with Simonpietri Enterprises (SEL) to provide engineering services and equipment for a plant to convert 15,000 tonnes of wood waste per annum into syngas. Work is to commence in late 2023 and conclude in early 2024. Initial revenues of €165k are expected, with the option for follow on revenues of €300k if the partners progress into FEED and €7m should SEL secure the required funding and proceed with the project. This is a promising development for EQT

EQTEC - Collaboration Framework Agreement

EQTEC has entered into a Collaboration Framework Agreement with Tresca Energia, a Spanish based engineering and infrastructure group. The agreement looks to deploy EQTEC’s solution in developing advanced biofuels and includes an identified project in Castilla y Leon for the conversion of 50,000 tonnes of biomass per year into renewable natural gas. Whilst the project is currently going through the feasibility stage, there has already been early interest with regards to both financing and offtake

Hybridan Small Cap Feast - 20 Nov 23

20th November 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obj

EQTEC - Debt Restructuring and Savings

EQTEC is refinancing its current debt and unlocking up to £3m of new financing for the company, with £950k to be drawn down immediately. In light of the refinancing the company is undertaking a cost saving exercise to reduce expenses with savings of over £1.5m a year expected. Meanwhile the company continues to progress its existing project portfolio with revenues from the Gardanne project of €186k for pre-feed work due imminently and follow on FEED studies worth €900k. The company is also incre

EQTEC - Italia MDC Update

EQTEC has provided an update on the shareholding of the Italia Market Development Centre (MDC) following financing changes to the project. In order to access the €2.9m loan secured for the refinancing of the project from a local bank, certain performance improvements to the plant were first required. The works are due to complete in Q4 2023 and have been funded by Quainstone Limited and EQTEC, two of the four shareholders in the plant and this has changed the overall shareholdings in the project

EQTEC (EQT LN) - H1 2023 results

EQTEC has released its H1 2023 results, alongside providing an update on its portfolio of projects, supplementing the Billingham and Deeside updates released last week.

EQTEC - Interim Update As Company Pivots

EQTEC has released is H1 results following its trading update last week. The company’s continuing transition away from capital intense legacy projects has had a direct impact on the results for the period with revenues and gross profit down compared to H2 22. Whilst there may be further news from legacy projects, it is clear that management are taking decisive action to either make good on these or cutting losses in order to direct resources to future projects. The company has a number of projec

Hybridan Small Cap Feast - 26 Sep 23

26th September 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment ob

EQTEC - Gardanne Project Moves To Pre-FEED

EQTEC has announced that the technical and commercial feasibility work for the Gardanne biogas project has been completed and the project is now in a position to commence pre-front-end engineering and design (FEED) work for c.€0.25m with the potential for full FEED work worth €0.75m to follow in H1 2024. We see continued progress in  Europe , and in particular France which enjoys strong public and policy support for biogas, as being critical for EQTEC and this is a helpful announcement supportin

EQTEC (EQT LN) - Project and revenue updates

EQTEC announced yesterday afternoon that it is to discontinue its significant Billingham project on Teesside in the UK, that it has initiated legal action against Deeside project land developer Logik Developments, and updated revenue guidance.

EQTEC - Legacy Project Problems

EQTEC is working hard to move to an asset light strategy and away from project development and management. Yesterday’s project updates were disappointing but show that this is the right strategy even if legacy issues can still impact trading. The Billingham project is being discontinued and  over £4m of investment could be written off due to a lack of offtake and financing. At Deeside, Logik has apparently gone its own way and EQTEC feels forced into a legal process to retrieve £4m in payments d

EQTEC- Italian MDC Refinanced

EQTEC has today announced the successful refinancing of its Italian Market Development Centre (MDC). The plant, which commenced operations in March 2023, has secured a loan facility for €2.9m with a two year term. This is helpful progress that will allow for the continued display of EQTEC’s advanced gasification technology in the region as the company seeks to grow its presence in Italy.

EQTEC - FEED For France MDC

EQTEC has today announced the signing of a contract with Idex Group for the provision of the Front End Engineering Design (FEED) to the French Market Development Centre. The contract is worth an initial €440k and work is expected to complete in December 2023. Assuming FID on the project is reached in Q1 2024, further licensing and engineering services sales totalling €15m from Q4 2023-Q1 2025 are expected to follow. Whilst this is a small portion of the total revenue to be received from Idex Gro

Hybridan Small Cap Feast 31/07/23

Dish of the day Joiners: Metals One (MET1.L) joins AIM. The Company focusing on acquiring natural resources projects with a focus on critical battery metals, including nickel, lithium, cobalt and copper has raised £2.2m at 5p per Ordinary Share. Leavers: Bonhill Group (BONH.L) has left AIM. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse se

PROGRESSIVE: Oxford Metrics: Drivers to growth and catalysts for rerating

Oxford Metrics’ results for the year to 30 September show a business that is growing strongly, driven by long-term technology, economic and demographic trends across the life sciences, entertainment and engineering markets. The results are in line with the trading update given on 25 October (see our note) that showed revenue and adjusted PBT ahead of our, and market, expectations. With a confident management commentary on the outlook, we raise our estimates for FY24E and introduce forecasts for

ITM Power (ITM LN) - Trading update

ITM has released a trading update, providing guidance on its upcoming H1 FY 2024 results, and reiterating full year FY 2024 guidance.

Water Intelligence 10m Trading Update

Water Intelligence has reported a strong 10m Trading Update that indicates it is on track to meet expectations and we increase our FY23 estimates by +2%.

Likewise (LIKE LN) - Strong revenue growth; on track to meet FY23 estimates

Likewise has confirmed that trading has remained in line with expectations underpinning Zeus estimates of 10.5% yoy growth (to £136.6m) for FY23. Q4 remains the single most important trading period of the year. November recorded record monthly revenue of £14.0m and Group revenue for the eleven months to the end of November is up 13.3% yoy. Within this, the Likewise Floor business has increased revenue by 29% underpinning the organic growth within the Group. It is very encouraging that the busine

Water Intelligence - 10-month update paints a strong picture, PTBA +14% YoY, inline for FY23E

WATR's 10-month update published this morning reflects continuing momentum in the business, in particular pushing margins ahead while also continuing to invest for growth. WATR is a supplier of in-demand water leak detection and related services across the whole of the US, with rarity / uniqueness in being a nationwide provider of these services, while also playing in international markets including the UK, Australia and Canada. The company has typically generated double-digit CAGR over the pa

Morning Note – 5 December 2023

Norcros - UK margins up materially, South Africa stabilising

Norcros’s compelling investment case was underpinned at the half year where underlying operating profit was down less than 3% despite material revenue pressure. Group operating margins rose 60bp, the UK business reported record underlying profits and Norcros continued to take market share in both the UK and South Africa. We believe that Norcros’s key strengths are underappreciated and that legacy issues, notably the pension deficit, have been resolved. We retain our estimates and value the share

discoverIE - Efficiencies driving margin, good forward visibility

discoverIE has reported an encouraging H1 2024 showing a resilient sales performance (flat in total, +4% CER) against strong comparators (+23% CER last year) in a difficult macro environment and an impressive increase in operating margins from 11.5% to 12.9%. Underlying EPS increased +8% and gearing of 1.6x is at the lower end of the target range. There remains significant opportunity for acquisitions, which – alongside targeting continued margin increases – provides upside potential to our fore

SIMEC Atlantis Energy (SAE LN) - Uskmouth BESS lease monetised

SAE has announced an agreement for monetisation of its lease payments from the 230MW Uskmouth BESS project, helping secure cash payments for the company and further demonstrate this element of its business model. Today’s statement also reports progress on further BESS projects, and a proposed extension to SAE’s Abundance bonds.

Quadrise+ (QED, House Stock at 2.4p) - Positive test results follow strong share price momentum

SP Angel Morning View: Gold powers through $2,100/oz on outlook for Fed rate cuts

Titon Holdings+ (TON, House Stock at 80p) - Trading update

UK-Listed Energy Sector: Review of the UK oil and gas landscape – why the country needs it, current policy and tax

The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.

Velocys - Recommended Offer at 0.25p

The recommended offer announced today for Velocys comes from a consortium consisting of Lightrock, Carbon Direct Capital, GenZero and Kibo Investments. At 0.25p this values Velocys at £4.1m on a fully diluted basis. Following the acquisition, the consortium will provide up to US$40m of funding to help Velocys achieve it’s medium-term growth plans as well as providing a £3.5m bridging loan until the acquisition is effective. We remain of the view that the offer is cheap relative to the long-term

PROGRESSIVE: SDI Group: Acquisition of Peak Sensors

SDI Group has announced the acquisition of Peak Sensors, a UK manufacturer of temperature sensors, for an estimated £2.4m (£2.3m less cash). The initial cash consideration is £1.58m, with a further c.£0.82m payment due shortly after completion. The deal will be funded from SDI’s revolving credit facility. As at 30 September, SDI had c.£1.78m cash, £15.1m bank debt and £9.9m undrawn bank facility excluding the accordion, providing considerable financial flexibility for the group. The acquisition