SIMEC Atlantis - Major Progress Led by Batteries

SIMEC Atlantis (SAE) has made major progress in moving towards a multi asset developer and operator of tidal energy and battery storage, with the potential to move beyond a recovery story back towards growth. Significantly much of this is based on battery storage projects with grid connections, which would otherwise be a major block to their development. With Uskmouth alone representing over 1GW of potential battery capacity we see this as a major opportunity for the company.

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.

Hybridan Small Cap Feast - 27 Sep 23

27th 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

SIMEC Atlantis - Interims Show a Profit

SIMEC Atlantis has posted a £4.5m profit reflecting the development fees received on the Uskmouth battery project. A return to better operations at MeyGen could help the second half and further out options in batteries could create useful income. The balance sheet remains weak although deferral of the Abundance bonds has removed immediate pressure. There is work to do but the interims show that the company has put itself in a stronger position in our view.

Hybridan Small Cap Feast - 08 Sep23

8th 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 obj

SIMEC Atlantis Energy (SAE LN) - MeyGen CFD auction award

SAE has announced that it has received a further award of UK government CFD support for its MeyGen project, located off the coast of Northern Scotland.

Simec Atlantis- CFD Support for MeyGen in Round 5

SIMEC Atlantis (SAE) has announced that it has won four Contracts for Difference (CfD) in allocation round 5, guaranteeing £198/MWh for 15 years from the commissioning date in March 2028, allowing for approximately 22MW of additional tidal energy capacity at its MeyGen project. This award follows the company securing support for 28MW of new tidal capacity in the previous allocation round for a combined total of 50MW. This award confirms Simec Atlantis’ position as one of the leading tidal energy

SIMEC Atlantis - Still In The Emergency Room

SIMEC Atlantis remains in the emergency room with a material uncertainty going concern statement. However, costs have been pared back and initial income received from the first battery project at the Uskmouth sustainable energy park. Income at MeyGen will benefit from additional turbines in the water and the option to add additional battery storage projects at Uskmouth and at MeyGen where a grid connection can be utilised gives the company options in our view.

SIMEC Atlantis Energy (SAE LN) - Full year 2022 results

SAE has released its full year results to the end of December 2022.

SIMEC Atlantis - Development Premium Recieved

SIMEC Atlantis (SAE) has announced that it has received the £4.0m development premium, marking financial close at its Uskmouth battery energy storage system (BESS), one of the largest BESS projects in the UK (230MW/460MWh). Following financial close, SAE is now expected to receive c. £950k annually over the 30 years covered by the agreement. This will provide a needed cash boost for SAE and allow for continued work at its MeyGen Tidal Project.

Hybridan Small Cap Feast - 05 Jul 23

5th July 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 objectiv

SIMEC Atlantis - MeyGen Turbine Upgrade

SIMEC Atlantis has successfully re-deployed its second turbine at the MeyGen site following upgrades which will allow for both improved performance and reduced future maintenance time and cost. Since first generation in 2016 to March 2023 the MeyGen site and its four turbines have generated over 51GWh of energy and the latest upgrades ought to increase the availability of this turbine moving forwards, allowing for increased generation and revenues under the CfD scheme.

SIMEC Atlantis - Bond Repayment Deferral

SIMEC Atlantis’ 2017 bonds due to be repaid in June 2023 have been deferred until June 2024, with a 10% interest charge over the extension period being applied. This will allow the company to focus on reaching financial close on the Uskmouth battery storage project in 2023 in order to unlock a further £4m in development premium.

SIMEC Atlantis - Uskmouth Milestone Reached

SIMEC Atlantis (SAE) have announced that Quinbrook Infrastructure Partners have given formal notice to lease the land at the Uskmouth site for one of the UK’s largest battery energy storage system (BESS) projects (230MW/460MWh). This displays good progress as the company looks to reach financial close on the project in 2023, at which point SAE will receive a further £4m in development premium.

SIMEC Atlantis - Adjusting The Bonds To Meet Payments

The deferral of bond repayments to meet expected major cashflows is perhaps inevitable and we would expect this to be acceptable to bondholders given the enhanced interest rate. It allows the company time to maximise the monetisation of the initial project and to pursue further storage opportunities at the Uskmouth site.

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

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

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