Powerhouse’s partner HUI’s funding of long lead time items shows a commitment to the company’s first European project in our view. As with Powerhouse’s own funding of similar items at the initial UK project, this helps to de-risk the timeline and moves the company towards establishing a wider European market.
Companies: Powerhouse Energy Group PLC
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Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world's best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset M
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The possibility of the involvement of global industrial gas major, Linde, (LIN GR) as a user of Powerhouse’s DMG technology is clearly positive although we would caution that all parties have been bounced into an announcement as a result of press speculation. Hydrogen and waste projects have very site specific characteristics and any individual project may not meet the requirements of any party. Linde may or may not go ahead in this case, but the interest is welcome.
Powerhouse Energy is formalising its development agreements in the key European territories of Poland, Greece and Hungary, securing a binding exclusivity agreement, bringing up-front payments and opening up these target markets for its waste-to-hydrogen technology. Our valuation scenario including European opportunities is at 7p per share and we see today’s announcement as making this scenario more achievable.
Powerhouse is moving ahead with the development of a second site in Scotland, with its partner Peel NRE submitting the project for planning. The DMG technology is idea for deployment at the enterprise and community level and we see this site as ideal for a second project.
The UK government has announced its long awaited hydrogen strategy and also launched a consultation on funding hydrogen production. The strategy confirms support for both green and blue hydrogen production as well as for the replacement of natural gas in around 3m homes. Subject to the consultation, the price differential between fossil fuel solutions and hydrogen will be subsidised by the use of contract for differences based on the existing UK support for offshore wind. As with the earlier ene
Companies: DRX ITM PHE SAE SIT VLS
The acquisition of a 48% stake in Engsolve brings this long-term engineering solutions partner closer to Powerhouse as the company moves towards the execution stage. Engsolve has worked closely with Powerhouse and provides key design, project management and other related services. It is a key partner to Powerhouse and we see this closer relationship as positive.
Following last week’s AGM comments on project timing we have amended our forecasts, shifting early numbers to the right in the timeline. While this impacts FY 21 and FY 22 forecasts the hit further out is minimal. As a result, the impact on valuation is not onerous with our base case valuation dropping 9% to 4.9p from 5.4p. Factoring in early European opportunities would give us a valuation of 7.0p and adding APAC opportunities and fuller European potential would get us to 11.7p.
Powerhouse’s AGM statement has set revised timing for the completion of its first project at the Protos site with a 2023 completion now expected. With the company adding key resources the new timetable is being de-risked in our view and the loan from the company to the project has already reduced supply chain risk on key equipment lead times. While we will review our forecasts for the new timing, we think the company is making real progress towards establishing its technology and we see the addi
Early signs of an offtake agreement are a positive for Powerhouse in our view and while the details of any deal still have to be agreed we see this as helping to generate interest in Powerhouse’s DMG solution more broadly.
CMO Group PLC, the UK's largest online-only retailer of building materials, announced its intention to seek admission to AIM. The Group currently operates seven specialist websites, Roofingsuperstore.co.uk, Drainagesuperstore.co.uk, Insulationsuperstore.co.uk, Doorsuperstore.co.uk, Tileandfloorsuperstore.co.uk, cmotrade.co.uk and Totaltiles.co.uk. Admission due early July.
Seraphine Group, intends to IPO on the Premium Segment on the Main Market. Seraphine, and together with its subsidiaries, i
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Powerhouse’s full year numbers largely reflect the known state of the company as it moves towards development of its first waste to hydrogen project in the UK. The company has also announced a further strengthening of the management team with the appointment of a specialist project executive which follows on from the appointment of a CTO announced last week. We have adjusted our numbers to reflect potential timing delays but these are in months and the impact on our central case valuation is min
Powerhouse’s arrangement to appoint an existing key consultant as a part time CTO, brings an existing external resource closer to the company and should help to facilitate delivery of the first commercial scale DMG plant at the Protos site in Cheshire. It also provides continuity while the company finds a replacement CEO following the retirement of David Ryan.
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AFC Energy’s statements and recent integration work with ABB highlight growing interest from customers which bodes well for orders in the months ahead. The forthcoming S-series of products will expand the Group’s portfolio and should deliver much high power densities and improved economics. The deployment of fuel cell technology is increasingly recognised by Governments and industry as a key tool in reducing global greenhouse gas emissions, which we expect will drive momentum for deployment in a
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Structuring the BUY case
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AFC Energy announced that it has entered a hydrogen fuel cell supply and
collaboration agreement with partner, Urban-Air Port Limited (“Urban-Air”), a
leading UK developer of ground infrastructure for the growing demand in
autonomous airborne drones and electric take-off and landing passenger
Companies: Ceres Power Holdings plc
XPD has reported strong H1 earnings with revenue up c.27% and adjusted PBT up c.74%; results were in line with our estimates. Revenue growth was strong across all three divisions - Freight Forwarding, Warehousing & Logistics and Transport Solutions. XPD benefited from continuing strong shipment and pallet flows in the CEE region, extra UK customs work related to Brexit, a partial turnaround in UK warehousing, and more DKV-linked fuel cards activity. Profit increased in Freight Forwarding and Tra
Companies: Xpediator Plc
Velocys continues to see supportive policies develop with the recent US proposed Sustainable Aviation Fuel tax credit adding to the potential attractiveness of projects in America. The company continues to progress its reference projects at Bayou in Mississippi and has provided technology under licence to Red Rock Biofuels in Oregon. Further policy support can only be helpful in growing opportunities for the company in North America in our view.
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Xpediator has announced a solid set of interim results, with revenue growing strongly across all three divisions, and group Adj PBT up c74% YoY to £3.6m. Xpediator has reaffirmed its FY21E Adj PBT guidance of in excess of £8.5m, with H2 being a seasonally busier period for the company. We update our forecasts to reflect increased expected working capital requirements during the year, leaving all other projections unchanged. Trading on a T+1 EV/EBIT of 10.8x, Xpediator remains at a 32% discount t
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H1 results reveal continued strong progress, with closing ARR up c.25% LFL at £6.6m driven by new subscription agreements, importantly validating CKT’s growing investment in sales and marketing with headcount doubling in H1. Meanwhile, CKT’s pipeline is up 4x since the start of the year so we anticipate growth to be maintained (or even accelerate) in H2. In this context, CKT is tracking comfortably in line with unchanged FY22 estimates, having achieved sales of £7.9m, ~53% of our full-year forec
Companies: Checkit plc
Despite the challenges presented by the pandemic, TP Group Plc delivered strong organic revenue growth of c14% YoY in H1/21A, with Adj EBITDA increasing to £1.7m (H1/20A: £1.4m). Improving visibility leads us to upgrade our revenue forecasts by c4% for FY21E to £66.0m (90%+ of which was covered by the order book at H1/21A). Expanding margins in the Consulting division are expected to be offset by temporary margin pressure on Engineering contracts during FY21E (our £4.2m FY21E EBITDA remains unch
Companies: TP Group Plc
Oil gained a third week as investors focused on the ongoing production shut-ins in the US Gulf of Mexico as more refineries have resumed operations nearly two weeks after Hurricane Ida tore through the region.
Futures in New York posted its longest set of weekly gains since July after ending Friday 2.3% higher. More than a million barrels a day of US offshore crude production remains shut in after Ida swept through the area nearly two weeks ago. Meanwhile, more Louisiana refineries are resumi
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