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Apparently its going to happen on July 12th (info picked up from a rival ChatBoard) with monies being paid about 2 weeks later. Not sure of the source of this information but is does seem reasonable.
From the original takeover RNS, takeover expecting to be completed late June early July
I was wondering same?
Hello - Does anyone here know the timetable for the takeover. Not sure whether to wait for the full money ie £1.25 or sell in the market. Can't seem to find any info on the net. Anyone better informed that me out there?
Agreed, Rivaldo. Was a sleep easy investment given the amount of work likely coming their way over the next 10 years. I also really liked the new CEO. Saw him in a couple of interviews and he seemed to have a lot of integrity.
Might well be looking at a different story if they were able to offload the businesses earmarked for sale and redeploy the cash to meet their strategic aims. It seems the prospect of cash coming sooner was too good to miss.
Only 3% of my portfolio so can't complain - just wish I had topped up more sooner!
At 125p the premium to the share price is around 40%, which is pretty good compared to the usual 25%-30%. But then that just shows how undervalued the share price was in the first place.
I note that Slater and Harwood are taking the money and running.
If SUR had succeeded in the acquisitions that were hoped for (and/or to divest the non-core businesses) it's possible that the share price would already be at 110p-120p and the bid would be a non-starter at this level. Hmmmm.
Lowser, the timing of your post on Tuesday was impeccable! It just goes to show that value will usually win out at some point. This was one of my larger holdings and was a very sleep easy investment for me (and a multibagger). So I'm happy with a large payout and the chance to reinvest (for example, TST and SYS have both just announced very good news and are both rather good value imho, along with the likes of DKL, MWE, REAT and RNWH etc).
hxxps://news.sky.com/story/sureserve-joins-tide-of-london-listed-takeover-targets-with-200m-deal-12862052
Lower than I hoped, £200M is around £1.20
i have to say rivaldo,your a long term trier here,but surely your resources are better suited elsewhere,i gave in long ago,its just no happening here,you be making more money in the bank than staying here long term,or short
Nice comment from the Naked Trader in his latest fortnightly post at the end of last week:
"Sureserve was liked by a lot at the follow up seminar last week, and level 2 looked good.
Showed how handy level 2 is, because it rose strongly by the afternoon. Shares look worth a lot more and remain too lowly rated."
And here's the good news in summary:
Https://www.telegraph.co.uk/business/2023/03/30/gas-boiler-manufacturers-5000-fines-heat-pump-targets/
Extracts:
"Gas boiler manufacturers face £5,000 fines for missing heat pump targets
‘Soviet-style’ quotas come as ministers plan to overhaul subsidy rules"
"Boiler manufacturers will be fined thousands of pounds if they fail to install enough heat pumps under new net zero plans.
Ministers are planning to force production quotas onto large manufacturers as part of efforts to boost uptake of the devices across Britain.
Companies that fail to meet the quotas will face a fine of £5,000 per device. In an example given in consultation papers, a manufacturer with a shortfall of 100 would be expected to pay £500,000.
Heat pumps are seen as a key replacement for gas-fired boilers, which ministers want to phase out in order to cut carbon emissions."
"It comes as ministers are planning to overhaul subsidy rules to make gas-fired boilers less attractive to households.
New gas boilers could also be banned within a decade, the Government revealed in its net zero strategy.
The Government said it would consider recommendations made by net zero tsar Chris Skidmore to ban new installations of the heating systems by 2033.
If adopted, the policy would mean households would need to install heat pumps or other low-carbon systems once their gas boiler breaks down."
"Other measures to encourage the switch in the new net zero plan include making gas heating more expensive compared to electricity by redistributing green levies on to the fossil fuel, and extending the £5,000 heat pump subsidy scheme."
"Under plans set out on Thursday, ministers plan to oblige makers of heating appliances to sell a certain proportion of heat pumps each year.
They will earn “credits” for each heat pump installed, which will be used as proof they have met their heat pump targets. Under plans being considered, an initial 4pc of manufacturers’ sales above a 20,000 threshold will need to be heat pumps.
Manufacturers will be allowed to buy heat pump credits from rivals and defer some of the targets to the following year."
Tomorrow looks like a good news day for SUR, with new government funding to be announced for various energy saving measures which SUR provides including insulation and smart heating:
Https://www.thetimes.co.uk/article/uk-to-impose-green-tax-on-imports-from-polluting-factories-8xgf6n9gx
"Cheap imported products made in polluting factories abroad may face new green import taxes and middle-income families will be given grants to make their homes more energy efficient under updated government plans to hit net zero by 2050.
The measures are part of a package of proposals that will be unveiled on Thursday by the energy secretary, Grant Shapps."
"The plan will be part of a wide range of updated net zero and energy policies to be announced on what has been called “energy security day”. Ministers will confirm that middle-income households will be given grants worth hundreds of pounds to make their homes more energy efficient under a new “Great British insulation scheme”.
Shapps will announce the plan to fund loft insulation, cavity wall insulation and smart heating controls. Unlike previous initiatives, which were targeted predominantly at the poorest households, 80 per cent of the new funding will go to households that are “able to pay”.
The money is expected to be given to people in council tax bands A to D, and the government will meet the bulk of the costs of any upgrades. The scheme, which will run over three years, will be funded using a levy on people’s energy bills known as the “energy company obligation”.
Ministers believe that people will make significant savings. Installing loft insulation can cost up to £1,100 but save £640 a year, and cavity wall insulation costs as much as £2,500 but can save £525 per year. Smart heating controls such as advanced thermostats and thermostatic valves cost up to £800 and can save £525 a year.
The scheme is part of measures that will be announced by the government in an effort to cut people’s energy use by 15 per cent by 2030."
Great finish yesterday, up around 6p on the day. Likely the closing of an overhang and a sudden lack of stock for the MMs.
There's plenty to look forward to in terms of news flow from acquisitions and disposals. Even better for this to be announced in the next few weeks if/when there's not much stock around.
Very unusual share move in the late afternoon, on no news. Ill be watching the RNS column tomorrow , to see if anything pops up up tomorrow. I bet that person who sold 15k worth at 79.7 p will be gutted now....
With 8.6p EPS forecast this year SUR are on a P/E of just 9.5.
In addition SUR have a £23m cash pile - approaching 20% of the entire m/cap. The ex-cash P/E must therefore be around just 7.6 or so.
And there's a new £320k contract win for Sure Maintenance with Staffordshire Council.
Https://bidstats.uk/tenders/2023/W08/793378922
SUR are newly tipped on the AIM Prospector web site - you can download the article for free:
Https://www.aimprospector.co.uk/product/34
Conclusion:
"A full year contribution from December 2021 acquisition CorEnergy will help and there is a wave of legislative/regulatory change that will increase demand for Sureserve's services.
While shares of this type typically do not attract a high rating, Sureserve has an excellent record, customer base and balance sheet.
The market valuation for the business appears mean bordering on outright wrong."
5%+ M Rawlings. Vote of confidence.
SUR's Warmworks JV was yesterday reappointed for another year by Orkney council to manage the rollout of up to £2.1m of funds to help local households with heating and insulation - with the council having just been given another £600,000 for this purpose:
Https://www.orkney.gov.uk/News?postid=7161
This time as part of a £35 million contract for Everwarm with Leicestershire County Council - the second that Everwarm have had with the same council - for domestic retrofit of "energy efficiency and renewable energy installations to social rented, private rented and owner occupied properties across the county".
And more long-term revenue visibility through to 2026:
Https://bidstats.uk/tenders/2023/W06/792527130
A new interview with the rather buoyant CFO of SUR "at the forefront of the energy transition":
Https://www.proactiveinvestors.co.uk/companies/news/1004740/sureserve-group-to-be-at-the-forefront-of-the-energy-transition-1004740.html
"I've added what will probably be a final lot of social housing energy services group Sureserve.
I've had these tucked away for some time, and added on weakness.
A very nice report was published, net cash, profits and order books all much higher.
I think it deserves a much higher rating but happy to remain patient. I guess most traders think it's too dull!"
Https://www.nakedtrader.co.uk/
SUR's Everwarm are part of a £30m-£35m Leicestershire Council framework contract win "to deliver a programme of domestic retrofit – Green Homes Leicestershire – securing a range of funding streams to deliver energy efficiency and renewable energy installations to social rented, private rented and owner occupied properties across the county":
Https://bidstats.uk/tenders/2023/W01/790036880
Looks like SUR's Aaron Services and Sure Maintenance are two of the ten winners of places on this £175m Gas Servicing and Repairs framework over the next 4 years from Bolton local authority dated 18th January:
Https://bidstats.uk/tenders/2023/W03/791019797
There's also this £10m-£100 framework win from the same source for SUR's two subsidiaries:
Https://bidstats.uk/tenders/2023/W03/791019892
Looks like an overhang has been cleared, with the buy price steadily moving up this morning and now at the full 90p publsihed offer price.
SUR have highlighted a £19m 5-year contract win from Great Places Housing Group for "gas servicing, maintenance and boiler installations":
Https://www.sureservegroup.co.uk/plc/media/press-releases/sure-gas-contract-extension-great-places-housing/
"27 Jan 2023
Sure Maintenance has secured a five-year contract with Great Places to continue carrying out gas servicing, maintenance and boiler installations. Worth in the region of £19m over five years, the new contract will commence on 1st April 2023.
etc"
https://www.investorschronicle.co.uk/news/2023/01/24/gas-business-heats-up-sureserve-s-prospects/
"Gas business heats up Sureserve’s prospects
Longer contracts offer greater visibility over revenue, CEO says
January 24, 2023
Sureserve’s (SUR) shift towards focusing on providing energy services to social housing landlords was fortuitously timed, given the greater focus on tackling fuel poverty following Russia’s invasion of Ukraine.
The company now installs and maintains gas heating, smart meters and renewable energy systems. The gas division continues to bring in most work, though, and the
average contract length has increased from five to six years, providing greater revenue visibility, chief executive Peter Smith said.
Its order book grew by 18 per cent to around £594mn at the year-end and it had 93 per cent of this year’s expected revenue secured as of 1 January. More than 90 per cent of gas contracts are also index-linked, providing protection against rising costs. Sureserve's cash profit margin widened from 5.7 per cent to 6.1 per cent.
The company has cash in the bank, but opted not to pay a dividend for the second year in a row, keeping its powder dry for acquisitions. Smith acknowledged this hadn’t played well with retail investors, but said he was “very clear why we’re
doing that” and that he had the backing of institutions.
Its M&A activity has been slower than anticipated – it changed advisers last year and deals were harder to complete due to a gap between buyer and seller expectations. It has faced the same issue with the two businesses it is selling – Sureserve Fire & Electrical and Precision Lift Services. It recorded a £3.5mn goodwill impairment against the carrying value of the lift business based on the value of offers received.
Broker Peel Hunt lifted its earnings per share estimate by 7 per cent to 9.3p. The shares trade at just over nine times this level, well below peers. Buy."