Hybridan Small Cap Feast 15-11-2023

Dish of the day Joiners: No joiners today. Leavers: Wheelsure Holdings has left AQSE. What’s cooking in the IPO kitchen?** 9 November: Chapel Down Group ITF: England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital

Hybridan Small Cap Feast - 06 Nov 23

6th 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 obje

Powerhouse Energy - Claim Against Patent

A claim against Powerhouse’s European patent has been filed. Such claims are not uncommon in the patent process and, given the complexity of waste gasification processes, we think it is surprising that a claim has been brought by what appears to be a relatively new player.

Hybridan Small Cap Feast - 30 Oct 23

30th October 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 obje

Powerhouse Energy - Longford Deferred

Powerhouse has announced that it is to defer further progress on the Longford Project in Ireland while it assesses its position with joint venture partner Hydrogen Utopia (HUI LN). This is one of a number of opportunities for Powerhouse and with finite resources, Powerhouse needs to be selective. However, we note that the move is described as a deferral which suggests it may be revisited at some point in the future.

Powerhouse- Technology Centre Update

Powerhouse Energy has completed general works at its new technology centre in Bridgend and the company will move into the site this month. The remaining works for the Feedstock Testing Unit (FTU) are now being reordered following the liquidation of the supplier engaged to provide the Thermal Combustion Chamber (TCC). Powerhouse has lodged a claim for the initial  payment of £163k made for the TCC as well as for liquidated damages. It is not currently clear whether this will result in a delay to

Powerhouse Energy - Key Patent Protection Granted

Powerhouse has achieved important protection of the IP around its Distributed Modular Generation technology. This adds to additional protection from the complexity of all ATT processes which already gives the company a high degree of know-how protection. The move helps to consolidate the IP in our view and brings useful validation to the technology.

Powerhouse Energy- Half Year Report

Powerhouse Energy has released its interim report for the period ended 30 June 2023 today. Following the announcement of a strategic reset in the 2022 annual report, the company has been focused on laying the foundations for the future growth of the business and this has been reflected in the financial results. The company raised £1m in August to support the new strategy which targets providing engineering services and the development of capital projects.

Powerhouse Energy - Placing Raises £1M

Powerhouse Energy has raised £1m before costs in a placing with 200m new ordinary shares issued at 0.5p per share. The raise brings the company additional cash which will be targeted at the build and fit-out of the Technology Centre in Bridgend. Announced in 2022 as part of Powerhouse’s evolving business model with greater project ownership and control, the centre will include a feedstock testing unit closer in design to a commercial product than the current demonstrator unit.

Powerhouse Energy - IP Progress

Powerhouse is making important progress in protecting the IP around its Distributed Modular Generation technology although the complexity of all ATT processes already gives the company a high degree of know-how protection. The move helps to consolidate the IP in our view and brings useful validation to the technology.

UK ETS To Add Shipping and Aviation

The authority which runs the UK’s Emissions Trading Scheme (UK ETS) has announced a package of reforms to tighten limits on industrial, power and aviation emissions from 2024. We see this as positive for a number of companies in our coverage universe; EQTEC (EQT LN), Powerhouse Energy (PHE LN) and Velocys (VLS LN). All three have developed advanced waste-to-energy and waste-to-fuel technologies. While these will now be included in the UK ETS they will be at an advantage to waste incineration and

Powerhouse Energy - Strategic Change and Reset

Powerhouse has today released its annual results and provided an update on its business strategy moving forwards. The company was previously pursuing a technology licensing model and is now looking to develop and own plants where it can deploy and showcase its advance thermal technology under the correct conditions. This change in strategy has had a knock-on impact on the financial results with a tighter focus on projects resulting in a non-cash impairment to goodwill. Strategic change and refoc

Powerhouse Energy - Engslove Brought Into The Fold

We see the acquisition of the remaining stake in energy solutions partner Engsolve as allowing Powerhouse to fully participate in early-stage project revenue as well as aligning both companies on the growing opportunity in waste to hydrogen and other energy projects.

Powerhouse Energy - Northern Ireland Site Identified

Powerhouse has today announced an agreement with Noage Energy to establish a project in Northern Ireland using Powerhouse technology to convert waste to energy. Noage have identified a potential site and work is due to commence to negotiate access and to obtain the necessary permits for construction and operations. This follows the joint venture with Hydrogen Utopia International to develop a waste to hydrogen project in the Republic of Ireland announced earlier this year and displays a growing

Powerhouse Energy - Full Ownership of Protos Assumed

Powerhouse Energy has concluded its discussions with Peel NRE Ltd and has assumed full ownership and control of the Protos plastics to hydrogen project. It has acquired the entire shareholding in the project special purpose vehicle for a nominal £1 and Peel will terminate its exclusivity on Powerhouse’s DMG technology in the UK. The move gives Powerhouse full control of the project allowing it to move forward with development and financing, with the next critical milestone being the securing of

Supreme (SUP LN) - Initiation of coverage

FY24 Interim results: A record H1 performance delivered revenue growth of 62.5% to £105.1m (H1 FY23: £64.6m), with growth across all divisions: Batteries +1.4%, Lighting +21.8%, Sports Nutrition & Wellness +17.5%, Vaping +32.5% (ex- ElfBar) and Branded Distribution +798.9%, which includes revenue of £26.4m from the ElfBar distribution opportunity, commenced in June. Adj. EBITDA of £15.2m is +88.0% (H1 FY23: £8.1m) benefitting from higher sales, and operational efficiencies. Adj. PBT of £12.6m is

Brickability Group - A diversified and resilient model

Today’s interims are in line with the recent trading update (11th October) and as such we make no changes to forecasts. Revenue of £324.8m represents a LFL decline of 14%, with EBITDA of £25.6m (H123: £25.5m). This is a strong performance, against what is a challenging market backdrop and underlines the benefits of its diversified operating model and focused strategy. We therefore continue to be surprised at the weakness of the share price, especially in the context of a broader peer group. Putt

TClarke - £1.1bn order book and delivery protection measures

TClarke has confirmed it is on track to deliver its three-year growth-plan target of £500m of revenues in 2023E (up from £426m in 2022). It detailed a 99% increase in the order book to £1.1bn alongside a further £1bn in opportunities. Reflecting the current challenges in the construction sector, management has made a number of strategic decisions to preserve the business’s strong market and financial position. These include changing some supply-chain partners mid-contract to protect project comp

Morning Note – 28 November 2023

Morning Note – 29 November 2023

Supreme Plc+ (SUP, House Stock at 110p) - Exceptional H1 - 'significantly' raised FY24F guidance

Epwin (EPWN LN) - Confirmation of FY23 estimates and buyback announced

Epwin has released a brief trading update confirming that it is on track to meet FY23 estimates. It has also announced its intention to start a buyback, indicating the Board’s confidence in the business going into FY24, despite the volatile operating environment. Zeus leave profit estimates unchanged across the forecast period. This is a continuation of the performance over the last few years, the business has met or beaten consensus numbers since FY20, has not raised equity and managed its bala

Strong H1 results raise full year outlook

The H1 outcome was as indicated in the recent (18 October) Trading Update. Group guidance for the full year is now raised: from revenue of £195m - 205m to £210m - £220m (ED estimate was £204.2m); (adj.) EBITDA from £28m - £30m to £32m - £35m (ED estimate was £29.0m). From incremental EBITDA of c.£4.5m, c.£1.5m arises from core operations and c.£3.5m from the Elf distribution agreement, which supplies retailers including Tesco, Morrisons, One Stop and WHSmith. A series of initiatives – branding

PROGRESSIVE: Xaar: Market malaise drags into 2024

Xaar has released a trading update for 2023 that includes cautious commentary around 2024. The group is expecting a strong end to the year in terms of profitability, albeit with depressed revenue levels. Sales pressures are expected to continue in 2024 and, combined with downward pressure on prices and cost inflation, are likely to lead to a materially reduced level of profitability. We alter our estimates for both years to reflect the update. Although the group is clearly navigating tough marke

Epwin Group+ (EPWN, House Stock at 67p) - Trading update and share buyback

Making positive progress on all fronts

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.

Alenby Capital - Transense Technologies - Update

In its AGM trading update today, Transense Technologies plc announced 13% yoy revenue growth in the first four months of the year to June 2024 and a threefold increase in PBT. Although showing encouraging yoy growth, revenue in the period was somewhat below management expectations, however, an improving outlook suggests an acceleration of revenue growth for the remainder of the financial year. Consequently, the Board expects to meet full year market expectations. The cash position is also robust

Morning Note – 30 November 2023

Plant Health Care - Outperforming the unprecedented destocking

Plant Health Care has announced a trading update, noting that market conditions in the wider agriculture market have deteriorated but that it continues to outperform the wider market with growth in all regions except the US. In the US, aggressive inventory destocking means orders that were expected in 4Q FY23 are now projected in early FY24. Plant Heath Care therefore now anticipates revenue for FY23 to show flat to modest growth over FY22 (which compares to the crop protection sector where reve