09 Mar 17
Suez on the move
Suez acquires GE Water for US$3.2bn. Suez has joined forces with Caisse de Dépôt et de Placement du Québec (CDPQ) which will provide €0.7bn in equity for a 30% stake in the combined GE Water/Suez Industrial Solutions.
17 May 17
Details of the capital increase
The c. €750m capital increase (to finance part of the GE Water acquisition, see our Latest dated 9 March) will lead to the issuance of 47,468,354 new shares representing 8.4% of the company’s share capital, with a subscription price of €15.80. The offering is conducted without shareholders’ preferential subscription rights and with a priority subscription period on an irreducible basis granted to existing shareholders: - the company’s existing shareholders (as of 16 May 2017) will be granted a three consecutive trading days priority subscription period, which will run from 17 May 2017 to 19 May 2017 (inclusive); - the public offering in France begins today and will close on 19 May 2017; - the private placement launched on 16 May 2017 at around 17:45 (Paris time) was priced in the evening of the same day. Orders placed in the public offering and private placement will be subject to reduction depending on the results of the priority subscriptions on an irreducible basis in the context of the priority subscription period and final allocations will be communicated once the results are available.
14 Jan 19
We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.
Companies: BCA CLIN CLG CBP DNLM EAH FDL FCRM FUTR GTLY INS GLE NICL SDL SPR TRI
27 Feb 19
FY18: back on track as expected
Suez released FY18 results. Sales reached €17,331m (+9.8% and +3.6% organic), EBITDA €2,768m (+7.4%, +3.4% organic), EBIT €1,335m (+10.2%, +7.5% organic), net income €335m (+13.4%). Free cash flow reached €1,023m and net debt at year-end was €8,954m (vs. €8,470m a year ago). The dividend proposed is €0.65 (unchanged). In terms of outlook, the group expects organic growth of +2-3% topline for FY19 and +4-5% at EBIT level, +7-8% for FCF and a net debt/EBITDA ratio of c.3x (3.2x currently), with the ambition to lower it until FY20. Also, the soon-to-leave CEO, Mr. Chaussade, will be appointed as Chairman, as expected, when Mr. Camus replaces him in May (see our comment dated 21 December 2018).
12 Sep 17
We take another look at lithium, where there is a growing realisation that the forecast massive increase in demand is already upon us. This realisation has been matched by an awareness that there is no shortage of lithium in geological terms. However, there is still a considerable degree of ignorance about which types of lithium mineralisation are commercially valuable using current processes and technologies; this will require the development and proving of new processes. In this note, we look at what attributes are required for a lithium-bearing deposit to be attractive for development into a successful mine in the present technical and economic environment.
Companies: APF ACP ATYM BKY CAML FDI GEMD HZM PAF PDL SAV SHG WTI WLFE ASO
26 Apr 19
A positive Q1 19 and Argentine past woes resolved
Suez reported solid Q1 19 revenues of €4,210m (+3.7% organic growth vs +1.7% in Q1 18), mainly driven by WTS (+8.5%) and R&R Europe (+4.7%). EBIT saw a +3.3% increase, reaching €293m thanks to strong activity in the International division, particularly in China and Australia. Net debt remained relatively stable (lfl) at €9,031m (3.26x EBITDA) versus €8,954m in 2018. A resolution was finally reached on the Buenos Aires concession dispute, resulting in the collection of a €220m settlement from the Argentine government.
10 Oct 16
Armadale Capital - Project Update
12 Jul 16
finnCap - Initiation of coverage, Fulcrum
10 Sep 15
Armadale Capital - Interim Results
24 Sep 15
Armadale Capital - Remains on track for commercial production in H1 2016
21 Feb 19
OPG Power Ventures Investors Overview
09 Nov 18
Executive interview - ERM Power
15 Feb 16
Armadale Capital - Update at 121 Mining Investment
12 Jan 17
Capital Network's Stacey: 2017 is the year Mytrah Energy will unlock value
27 May 15
Executive Interview - KTG Energie (German version)
10 Dec 18
Executive interview – 2G Energy
07 Jul 15
Armadale Capital - Andrew Tunks: Key to a successful gold operation
08 Jun 15
Armadale Capital - Agreement to fund and develop the Mpokoto Gold Project
23 Nov 16
Armadale Capital - Full assay results confirm exceptional high-grade graphite deposit
26 Oct 16
Armadale Capital - 85% strike rate from drilling Tanzania
25 Nov 15
Armadale Capital - Update on the development and expansion of the Mpokoto Gold Project
Encouraging Q2 figures
After weak Q1 figures, Fortum released a solid set of results for Q2, beating our estimates and the market’s expectations. Results increased in all divisions and higher achieved prices and good hydro and nuclear volumes were the two major growth contributors. Thanks to strong cash flow generation, the group was able to reduce its debt ratio and to reiterate its ambitions to strengthen its balance sheet.
19 Jul 19
ACP FEN LID SCE PPC GTLY
Morning Note – 16 July 2019
Armadale Capital (ACP): Corp Mahenge Liandu project update | Frenkel Topping (FEN): Corp Improved rate degrades present value, but insignificant | Gateley (GLTY): Corp Strong momentum and investment for growth | LiDCO (LID): Corp China approval | President Energy (PPC): Corp Frac on | Surface Transforms (SCE): Corp SCE lands breakthrough contract with OEM 5
16 Jul 19
TRAK CAPX CAPX SEE TCM TRCS QTX
Baidu announces driving platform, Amazon’s Deliveroo bid on hold, Walmart’s $1bn eCommerce loss
China's top search engine operator Baidu has joined hands with Zhejiang Geely Holding Group and Japan's Toyota Motor Corp to cooperate on areas related to artificial intelligence amid a push for self-driving cars. Under their partnership, Geely and Toyota have joined Apollo, an autonomous driving platform by Baidu. Britain's competition regulator has stepped in to pause Amazon's deal with online food delivery group Deliveroo while it considers launching a full investigation. Amazon led a $575 million fundraising in Deliveroo in May, making what the two parties called "a minority investment" and going up against Uber Eats in the global race to dominate the market for takeaway meal deliveries. Walmart's eCommerce division is projecting losses of $1 billion in its bid to catch up with Amazon, which is causing tensions between the leader of the division and Walmart US CEO Greg Foran, according to reports. The division, which is led by Marc Lore, has sales of around $21 billion and as the eCommerce division loses money, Lore is being pressured to sell off some of the company's online properties, like Bonobos and Modcloth, which Walmart will probably sell this year at a loss.
08 Jul 19
CHINA WATER AFFAIRS GROUP
China Water Affairs Group - Extending the earnings growth record
Although FY19 revenue was below expectations, it was offset by higher than expected margins in the water supply business and a lower tax charge, allowing EPS to beat our forecast. China Water Affairs Group’s (CWA’s) 2013–19 compound annual growth rate (CAGR) in EPS now stands at over 27% and the group remains positive about its prospects. The current rating is undemanding for a company with CWA’s growth prospects.
02 Jul 19
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Morning Note – 25 June 2019
Armadale Capital (ACP): Corp Mahenge Liandu project update | D4T4 Solutions (D4T4): Corp FY 2019 beats forecast as earnings quality grows | Kingswood Holdings (KWG): Corp Lining up opportunities, getting ready to execute | Morses Club (MCL): Corp AGM statement | Pelatro (PTRO): Corp AGM statement confirms 2019 is on track | Redcentric (RCN): Corp Prelims – cash is king | Tri-Star Resources (TSTR): Corp Annual results 2018
25 Jun 19
CER PRES THR TEK KWG BBB RCN IRR ACP IBPO
Small Cap Feast
IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas w hich have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC
25 Jun 19
Is Centrica a value trap?
In our last model update we affirmed that, in the long run, a recovery was still possible, but that we preferred to remain cautious for the time being and wait for some news flow positive enough to cause an inflection point. Unfortunately, in the absence of a positive element, we have now decided to review our approaches and adopt a more conservative view.
20 Jun 19
SRB AVCT FCRM ADAM KAPE INSE SHG CTH LWRF LPA
Small Cap Feast
Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019 Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for nonspeculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June
20 Jun 19
2018 Annual Results
Armadale Capital has released results for the year ending December 2018. The main activity during the year was the continuing evaluation of the Mahenge graphite project in southern Tanzania. A Scoping Study was completed during the year, based on a 400,000 tonnes per year open pit mining operation, producing 49,000 tonnes per year of high quality graphite. The study delivered a robust economic return including an unrisked post-tax IRR of 89% and an unrisked post-tax NPV of US$239m. This is an excellent result, reflecting the high grade nature of the orebody. We do not at this point in time have a target price for Armadale.
28 May 19