We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
First class research Sitandwatch. Hats off. I used to be in the solar business and still see huge upside in solar and Ev aside- plus we have 'access' to MyZero.......AND £18m in the bank. What could be better ? I mean i passed 5 schools on my commute this morning and did not see any solar installed and I only travelled 3 miles !
It isn't correct I'm afraid. The below extract from the RNS confirms the Company (eEnergy) has entered in to an agreement with EML (the disposed division) to allow them to licence My Zero. Why would they do that if they owned the metering company.
"The Company and EML will also enter into a cross-referral and licensing agreement (the "CLA"), under which the Company and EML shall cross-refer the other party's services to their own client base with a referral fee being paid for successful referrals. EML shall licence to the Company the use of MY ZeERO, including the right permit the Company to sell up to an agreed number of MY ZeERO eMeters per year to its client base. The CLA is for an initial period of two years, following which it may be extended further by mutual agreement."
Correct
According to their 12month results announcements the energy services part is "Energy Services is segmented into three verticals - Measure (primarily MY ZeERO), Reduce (primarily lighting) and Connect (eSolar and eCharge)." so metering is still within e.energy
This has been bothering me Hught so I have spent some time researching this, as you make a valid point about the metering business. If this remains part of the group then I agree with you and K3V that they have a USP.
I believe eEnergy insights is the ltd company of the metering business, and if correct, this has changed ownership to Flogas. I could be wrong though and if anyone can shed clarity on it I would be interested.
https://find-and-update.company-information.service.gov.uk/company/13286210/filing-history
Pretty sure what was sold was the reverse auction energy contracting business; ie Utility Team and added Consultancy leaving rapidly growing Energy Services being metering/ solar and EV charging etc . Am ready to be correcting !
Was the metering business not sold as part of the energy management division? If not, then I would agree with you.
Metering Business = MY ZeERO
Good to have positive debate but I am pretty sure you'll find the metering business is a significant USP (with Harvey in the past commenting a similar system was bought by a major for $50m+) with the Company having it front and centre of its new focused strategy. But will be keen to hear this confirmed ?
Thank you K3V, you raise some interesting points. A couple of thing I need to respond to;
-I didn't say it failed, I said the buy and build strategy hadn't worked. Not just mere semantics, but facts. By offloading the higher margin EMaaS business, it suggests to me cross selling EaaS services to the acquired businesses didn't work. The primary reason for acquiring complimentary businesses. Indeed I think Harvey cites in the RNS that the sale is a simplification of their core business. This smacks of washing their hands of an unwanted division, imho.
-There are a number of lighting as a service providers operating in the UK, none of which had a energy management division underpinned by a credible software solution. eEnergy has now sold the family silver in my view and are lack real differentiators. I do not believe they will not be able to compete head to head with the bigger players in the sector. So I disagree with you that they have a USP.
This is what leads me to believe they will sell the services business also. Either that or they will delist.
As an investor in this stock, I hope I am wrong as you claim I am. Good luck all.
Sitandwatch
“ the energy management division was sold to flogas, leaving the original energy services business.”
And being paid £30m+. That is £5m more cash than current MCAP!!
“ I suspect that the BoDs will look to sell this off too as the buy and build strategy employed to scale the business hasn't worked.”
Well, the Energy Services business grew turnover by 87% in the past 12 months, but was constrained, that is to say held back, by the lack of working capital, largely funded by £8m borrowing. Energy Services Division reported revenues of £19.5 million and Adj EBITDA* of £2.3 million, up 87% and 131% respectively on FY 2022, demonstrating significant and growing demand. Expect revenues in the next 12 months to be at least 87% up again, with the increased EBITDA being further enhanced by the £1m that they will save in interest costs.
So, no, it hasn’t failed. Far from it.
“they don't have deep enough pockets to fight an organic growth battle against the lead players in their market.”
They have a usp. They will be the first choice of eco warrior headmasters.
“I could be way off pace however, who knows with this stick”
If you mean, completely wrong, then we can agree on that.
Hi MrGoldsmith, as per Smythy's comment, the energy management division was sold to flogas, leaving the original energy services business. I suspect that the BoDs will look to sell this off too as the buy and build strategy employed to scale the business hasn't worked. they don't have deep enough pockets to fight an organic growth battle against the lead players in their market. I could be way off pace however, who knows with this stick... good luck all.
You mean energy management?
Hi Sitwatch
Energy services now sold to Flo gas
I agree a divi is unlikely, as I suspect they will sell the Energy Services business this year also, and having cash in bank will help their valuation. We will see. Good look all.
I think the investor meets presentation may have been delayed so it can incorporate full year numbers (which is 18 months this year as the time period is being adjusted) , as else all the questions will be about that.
Did they say 2md half if Feb? If so any time now.
Although i have big holdings in my SIPP and ISA i have also traded this recently as some of the drops have been strange, almost due to boredom. After the sale was announced this spiked to 9.75p and in the next week dropped to low 6s. I loaded up in the 6.1 to 6.5 range and sold these at c7.9p. When the EGM was confirmed i also thought best to sell a few more as i suspected some would see this as a opportunity to get out. So sold a few at c8p. Just bought some back this morning at 7.19. With the £25m received that's c6.5p underpinning the SP. IMHO anything under 7.5p is a massive bargain. Hopefully if the BOD show they are using this money wisely (and not just paying themselves excessive bonuses) this should be 10p plus.
I doubt they can because i suspect we are in the closed period before results due i think in April. IMHO i cannot see a special dividend they will be wanting to grow the company in some way, hopefully we will find out the plans with the results.
we all just need to be patient. I know if the SP drops much more i'll be adding to my holding, for most this is a screaming buy now even on valuation terms. good luck all.
It would be great to get an update from the BoD soon. I suspect a delay in communicating anything at this time is that they are waiting on some key news. Hopefully a special dividend, as this would attract a different type of investor going forward and maybe encourage a few existing investors to hold on rather than take profits too early.
Let's sit and watch, good luck all.
Looks like the updated broker valuation is 12p. Looking at other similar debt free companies, we must be on a forward p/e of at least 10, which would mean at least 10p. A very easy buy and hold IMO
Thanks, Trendz. What would be a reasonable assumption of share price based on this?
Right - Stockopedia is showing the new forecasts! Obviously the broker note is not made available to us plebs until after the big boys have it... We are looking at EPS of 0.87 for FY24 and 1.08 for 25. This means EAAS trades on a forward p/e of 7.27. Plus cash, plus growth. Insane valuation
Imagine a few RNS in the next few weeks. Results in next 2 weeks I believe
Morning, gents. Are we not supposed to have had revised forecasts / a management presentation following completion of the sale?!
Good to see some sizeable buys in the 8s. Hopefully a broker rerate and onwards and upwards
Fully agree PTI. I suspect we have a big seller at 8p, as it has been a firm resistance for some time now. Finalised 2023 accounts, and another decent RNS will hopefully blow away the remaining cobwebs.