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Renewable energy firm Infinis saw its annual underlying profits rise more than 18 per cent following a strong performance from its landfill gas and wind power operations. The company, chaired by former SSE chief executive Ian Marchant, posted an underlying pre-tax profit before one-off items of £148.4 million for the year to 31 March, up from £125.4m a year earlier. Revenues grew 7.3 per cent to £242.5m and the firm, which floated in November, proposed a final dividend of 6.63p a share.
Attractive and sustainable dividends supported by high operating margins and strong, resilient cash generation. The Company expects to declare a target dividend of £55m for the financial year ending 31 March 2015, its first full financial year following the Offer[2]. Thereafter, the board of directors of the Company (the "Board" or the "Directors") intends to increase dividends at least in line with inflation. For the current financial year ending 31 March 2014, the Company intends to declare a dividend equivalent to an annual dividend of £55m pro rata for the period from Admission to 31 March 2014; · Organic profitable growth through the build-out at cost of the Group's onshore wind project development pipeline, with a target of adding 130-150 MW of onshore UK wind capacity over the next three financial years. Investing at cost in new high quality renewable power generation capacity such as Infinis' organic projects under development represents a clear opportunity to expand the Company's asset base, drive future earnings growth and deliver attractive returns to shareholders.
I agree on EV/EBITDA it is fully valued. An operational wind project changes hands for 9x EBITDA and landfill for less so that the shares on 9.5x EBITDA look fully valued. But I do think the yield is probably okay for a few years assuming 4-5% decline in landfill revenues.
Infinis Energy PLC On Track To Fullfill £55m Payout Infinis Energy (LSE: INFI), the renewable energy firm chaired by the former SSE boss Ian Merchant, saw revenues increase by 7.3% in 2014 on strong performance from its landfill gas and wind businesses. Strong revenue growth and a focus on cost control boosted earnings before exceptional items by £148m from £125m a year earlier. The Northampton based firm has strengthened its balance sheet and the leverage ratio fell to 3.7 times from 4.4 times a year earlier. As for outlook, there are no shortage of risk factors, from unfavourable weather to a challenging political backdrop. However, the firm’s strong cash generative nature means that the board is confident the stated dividend policy can be delivered without compromising growth plans. The chief executive, Eric Machiels, commented: “We are pleased with the performance of the Group during its first months since listing and look forward to further delivery against our targets in the current year.” In the week leading to today’s results the shares rose by 16p, or 8%, to 227p. Infinis posted a final dividend of 6.6p per share and is committed to paying a full year dividend of £55m (18.3p) for the coming year. Based on the present share price, which values the company at £682m, the prospective yield on a purchase in Infinis could be 8%.
Infinis Share price will move upwards and stable cash reserves
Sound company but perhaps overvalued at IPO and even now. Mkt cap now of £705M. Net debt £547M. Total enterprise value (EV) £1252M. ADJUSTED EBITDA (after taking out all "one-off" costs) £148M. Subtract annual maintenance capex of £17M. gives recurring REAL EBITDA of c£130M. Therefore valued at c9.6x REAL ADJUSTED EBITDA which may be OK for high growth but likely not for a company with declining assets.
Yes agreed that landfill does say 65% of ebitda and that is in decline. Wind will partly compensate but the cash is probably enough to pay the divi for a few years albeit costs will fall as wind developments costs (capitalised but still cash out) fall ditto o&m. So I think it's ok for a bit but still better value than greencoat which is simply an annuity income stream for which you pay 2%!!
My view of the flaw in Infinisis is that, ironically, it is NOT infinite but its assets -especially landfill- have a very finite life. On current EBITDA earning measures it looks OK but this excludes DA (depreciation and amortization) which are not cashflow but are important, in my view, because they capture the fact that company's assets have limited life. In my, non-expert, opinion Full Year EBITDA will be c£130M. But net of maintenance capex (mentioned in prospectus and similar to ops cost) of c£15M and interest of c£45M, INFI is left with c£70M to pay an annual divi of c£55m. Moreover there will be downward pressure on earnings from end-of-life assets and I am concerned that this pressure will be felt on dividends which is the main attraction.
don't panic. stop shorting em and the price should bounce back to what they are worth !!
Cracking yield esp if you got in at sub 200p. It's brilliant!! And worth at least a 7% yield or 260-280p. Well managed too.
Confident statement accompanying results. Final dividend of 6.63p for 2013/14 and 18.33p divi promised for 2014/15. That's a cracking yield.
The point is that the embedded generation of Infinis can probably support an 18p + dividend. If Camoron and his idiotic chums get in then Infinis will have to slash overhead. Go greencoat yields 5% and Infinis 9%. Both are wrong and both should be around 7% in my book.
Infinis Energy PLC (LON:INFI)‘s stock had its “outperform” rating restated by research analysts at RBC Capital in a report released on Friday. They currently have a GBX 280 ($4.71) target price on the stock. RBC Capital’s target price would indicate a potential upside of 35.27% from the stock’s previous close. Infinis Energy PLC (LON:INFI) opened at 209.00 on Friday. Infinis Energy PLC has a 1-year low of GBX 196.80 and a 1-year high of GBX 276.75. The stock has a 50-day moving average of GBX 214. and a 200-day moving average of GBX 240.6. Several other analysts have also recently commented on the stock. Analysts at Liberum Capital reiterated a “hold” rating on shares of Infinis Energy PLC in a research note on Friday, May 16th. Separately, analysts at Deutsche Bank upgraded shares of Infinis Energy PLC to a “buy” rating in a research note on Thursday, May 15th. They now have a GBX 220 ($3.70) price target on the stock. Finally, analysts at Deutsche Bank cut their price target on shares of Infinis Energy PLC from GBX 250 ($4.21) to GBX 220 ($3.70) in a research note on Thursday, May 1st. They now have a “hold” rating on the stock. One research analyst has rated the stock with a hold rating and four have issued a buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of GBX 270 ($4.54).
True but there does appear to be a little support for onshore renewable energy. If it was to get back to 270 that would do for me. have copied in an article below sorry its a lengthy one, it does look like the industry is lobbying for support. Association RenewableUK has said that if the UK is to meet its legally-binding target of generating 15% of all energy from renewable sources by 2020, more onshore wind may be needed to make up for a possible shortfall in other parts of the energy mix. The warning follows comments by the Chairman of the Committee on Climate Change, Lord Deben, in The Times, in which he stated: “I’m happy that we have already got enough onshore wind to 2020 to meet that part of the portfolio.” RenewableUK points out that not all the onshore wind projects which have been approved will actually get built - about 10% will drop away for financial and other reasons between now and 2020. This means the UK could lose more than 450 megawatts of onshore wind capacity – enough to power nearly a quarter of a million British homes. So the pipeline of approvals will need to be extended to make up for this. As well as generating renewable electricity from wind and other clean sources, the UK has committed to produce a significantly higher proportion of heat, and fuel for transport, from renewables. According to the latest available Government figures, the UK is only a third of the way towards its target for transport fuel, and just a fifth of the way towards its target for renewable heat. To make up for a shortfall in these other areas, the Government could increase the amount of clean electricity to hit the overall target, as the UK is already over half way towards generating 30% of its electricity from renewables - more than half of which is being provided by wind. RenewableUK is also calling on the CCC Chairman Lord Deben to support the case for wind energy in the 2020s. In The Times interview, he stated: “It is likely that onshore wind will continue to play a part in our renewables after 2020, but it is not a decision we have to make now, and there are circumstances in which it might not. The public will decide what the balance is.” The CCC’s 4th Carbon Budget, currently being considered by the Government, envisages 25 gigawatts of onshore wind by 2030, 12 gigawatts above what the Government says we should have installed by 2020. The CCC has also acknowledged that onshore wind is one of the cheapest technologies to achieve this. RenewableUK’s Deputy Chief Executive Maf Smith said: "Onshore wind is the cheapest form of renewable power we have, so we’d expect the CCC to continue to champion it at every opportunity. “Public support for onshore wind has reached a record high of 70% according to official Government figures, so the Committee on Climate Change will want to remain in step with the majority of the British public, who strongly suppo
Well 310 is a 5% yield and that is too low in context of the Tories stance on wind. I think pre election 230p odd is achievable. It was too expensive when it ipo'd.
Its a start, like to see this heading back up to the illusive 310 again !!
The buys at 196 look ok and the first ones at 209 are twitching!!
Sorry I meant greencoat is far too low and Infinis far too high a yield.
It was sold too expensively at ipo. Doubts over landfill gas earnings sustainability. Tories saying no more onshore wind. Lower power price after the idiotic Tories capped carbon price leading to lower power prices. Etc etc etc. But more than in price now. Greencoat yields 5%. Infinis, a better company, yields 9%. Both are the wrong yield!!
Actually I wasn't thinking of selling after the ex div date as i bought in at £2.68 The div doesn't make a great deal of difference to me. Just trying to generate a bit of interest as I only saw the announcement this morning. Anything to help influence a bit of positive movement to the SP. Still trying to fathom why the SP has gone so low !!
Why would you sell after the ex date???! I've bought these as the "right" yield is sub 7% even allowing for the uncertainty and the deterioration of landfill revenues. So the right price for the equity is at least the issue price, that assuming a bit more wind online. Anyhow, the div will be prorated.
16 May 2014 INFINIS ENERGY PLC (Symbol:INFI) Notice of Preliminary Results and Financial Calendar Update Infinis Energy plc ("Infinis" or the "Company") advises that the date of its Preliminary Results will be 19 June 2014 and provides a financial calendar update for the remainder of the year. A presentation and conference call to discuss the Preliminary Results update with investors and analysts will be held on 19 June 2014. Details of this will be included in the announcement and will be available on the Company's website. 19 June 2014 Preliminary results 30 July 2014 Ex-dividend date You can then sell the shares at any point after the market opens on the ex-dividend date and still receive the dividend payment
Managed to acquire quite a few more shares today under 200p. Brings my average price down to 204 and (hopefully) locks me into almost a 9% yield.
Better!!
I agree, this is a steel, I bought 7500 shares for 20 k when these were at 268 and looked like they were going all the way to 310. As I'm used to seeing the price go up and down i didn't panic sell, ( my mistake !! ) Consequently I'm now sitting on around 16 k worth of shares so for what its worth anyone getting in now is buying in for peanuts !!.