Intelligent Energy (IEH) made major steps forward in all three divisions during FY15, although the share price has been adversely affected by financing concerns, which management is actively addressing. The DP&G division negotiated a deal with GTL that transforms the group’s revenue profile and establishes a platform for volume deployment of fuel cells. The Motive division has broadened its customer base so it now works with one in four major automotive OEMs. The Consumer Electronics (CE) division launched its first product, acquired key assets for accelerating the development of fully embedded fuel cells and secured joint development work with an emerging smartphone OEM. We trim our estimates to reflect a modified CE business model and now see fair value at £426m ($643m).
