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It is a steal. The earnings/EBITDA is based on operational assets that are primarily built under the Renewables Obligation or the RO. They are developing and building more assets and they have landfill but little or no solar. So the income upon which a 9% yield is based is primarily stuff that is built. If the (moronic) Tories do stop onshore wind then they have some offshore and will presumably slash costs in the wind development business. So earnings may actually rise in the short term although landfill gas will over time decline and the wind is supposed to offset that. So my guess is that a sustainable 5-7% yield is achievable even if landfill gas declines more rapidly. Of course the chances of the (moronic) Tories winning an outright majority are no more than 50/50 and if they don't win then Infinis is really very very cheap as a new coalition would have to support onshore wind. If the (moronic) Tories do win then Infinis provides a decent annuity income stream which as they build out the planned onshore wind and perhaps some offshore will actually grow a bit.
Even today in D.T. I read that subsidies to solar farms are being reduced relative to onshore wind and given infi was priced at bottom of range at 260p and fossil fuels are shortly to be taxed to oblivion something is wrong here. We are either sitting on a steal at these levels or the money is talking and we're missing a major fly in the ointment-it's one or tother.
I fear I might have been a teeny bit early on this one!! Seems the world of renewables has no fans - whatsoever.
Indeed! Loving the V90 idea... closing my eyes and just imagining the scene! What a glorious solution! They would be catapulted with some velocity that's for sure, and then a steady descent at 9.81 m/s until they hit Terra Firma ('scuse the pun but could not resist). Good luck to you!
...is everything!! I genuinely think we are near the bottom. Just feels as though there is some interest at this level. That being said I don't think it'll go up much beyond say 220p until we get some project news and even then politics will dominate. But with a near 9% yield one is being paid to wait so to speak. I'd love to strap Ca moron, Osbourne and maybe Pickles to the blades of a V90 in a gale and see what happens.
Parkside, thanks for the further explanation re dividend. Like you , I know the members of the Infinis team. Agree they are a solid bunch, so do feel the risk is low in that regard. Its a simple matter of choosing when to buy.. Looking at the price since flotation, I wonder if we are nearing the bottom? That's always the question in any investment of course! It's in my view undervalued, and like you say pitched against Greencoat, it makes little sense. I do know there is heavy investment going on in wind right now and it would be likely to see an RNS to that end in the coming weeks. Timing timing timing.....!
No you will qualify for whatever they pay as they haven't gone ex of the payment and that wont happen until a few months after the results so again I would imagine maybe August or September or something like that. I know the Infinis team quite well and they are top notch so your capital is as safe with them as with anyone - caveated by Tory idiocy!! The irony is the price of Infinis versus Greencoat. Both are rather mispriced in my view! One is far too high, the other far too low. I'll let you decide which one is which!
Parkside - many thanks for your response. The "Tory Factor" is a risk, but I tend to agree with your earlier post regarding the low likelihood of them achieving a majority vote at the next election, so their capability to wreak havoc in the support for wind is much reduced I hope. Therefore I believe the dividend would go ahead unabated. I do remember reading in the prospectus something about pro rata. Will double check on that. What I cant find is the date by which you must hold shares to qualify (i.e the ex-dividend date). If that date is in the past, then I have missed the dividend boat (but still am very much planning to invest regardless). If that date is in the future, then all the better. I have great faith in Infinis and look forward to some positive announcements from them in the near future, and hopefully then the share price will find its level at a higher rate than now. Regards and thanks...
They have committed, in their prospectus, to pay out £55m as a dividend and that this should, thereafter, be a progressive policy. Now hands owns 60% odd of this thing and is sitting on quite a big "loss" against the float price so that dividend stream is quite valuable. I think it will be paid that unless, in the face of announcements from the (idiotic) Tories they want to preserve capital - although no reason to. So they have a mkt cap of £613m or to put it another way around 297m shares in issue. That equates therefore to around 18.5p of dividend per share or a yield of around 9%. They say it'll be paid in respect of the results to March 2014 so I would imagine that it will be paid sometime later this year say august or September (but the timing is a guess on my part). And not sure if it'll be the full 18.5p as the Company hasn't been listed for a full year so it might be a pro-rated dividend. It might be buried in the prospectus somewhere. But I do think these are good value but caveat emptor as always.
Hi All. I work in the wind industry and am considering making a long term investment in Infinis. I wondered if you one you kind people could explain the dividend situation please? From what date do you have to hold shares in order to qualify for the dividend and what is the proposed dividend payout date please? Thanks in advance for your help.
I have just bought these. I think the landfill gas production is probably overegged but wind should be okay. They have a decent amount of wind to build and the chances of the Tories winning a majority are less than 50/50 the two other parties strongly supporting it. The £55m divi is comfortably covered by net cashflow and the shares yield almost 9%. So unless the (idiotic) Tories cut subsidies for operating assets (unthinkable) these shares are now fantastic value and obviously a great yield.
..fall has been a huge disappointment. I'm in for the divi like you good folk, but currently at a large loss on capital. Waiting for the first payment. With regard to Tory onshore windfarm policy change, IMH if the Ruskies give one squeeze on the gas pipe, there will be pressure for the policy change to be reviewed in order to facilitate a boost in security of energy supply. A significant winter power outage would do the same thing. It would be interesting to know what the other UK parties' policies are on wind farms. I don't thinks the Americans are flogging us LPG big time yet as a substitute - and they have their own security to think of. GLA
What is wrong with this sp, no news or divis. Fed up
One thing has changed in the last few weeks Bev88. Telegraph carried 2 stories suggesting Tories had gone right off onshore wind power related to issues of blight (or more cynically related to the concerns of potential Tory voters about blight). There was no suggestion that they would dishonour their legal obligations and I would suggest that it is doubtful to happen in the extreme. The bigger concern is how it may crimp prospects for this part of Infinis business to grow over the long term. Perhaps to bring a more positive note they could explore opportunities in Europe, offshore and grow the landfill gas business. If Scotland went independent I think the guarantees would continue but it would make Tory government for the remnant of the UK much more likely and thus adversely impact on future growth of the wind side in remnant UK though might actually add to opportunities in Scotland which would most likely be run by SNP or labour. I don't have enough accounting expertise to judge whether stock is dirt cheap. I bought knowing these issues had just come up at around the 245 and 235 marks. Premature in some ways given the news but in the past I had missed the dip in the stock and did not want to do so this time. I like the fact that it has government backed income and thus is highly likely to be able to at least sustain a high yield even if it ends up having a fairly static or low growth rather than strong growth future.
THESE SHARES SEEM TO BE SET AT A LEVEL ASSUMING WIND POWER ARMAGEDDON. YESTERDAY'S STATEMENT IMPLIED THAT SUBSIDIES FOR EXISTING ONSHORE WINDFARMS WILL BE HONOURED EVEN IF THE TORIES GET BACK IN AND FLOTATION PRICE WAS SEEN AS ROCK BOTTOM AT 260P IN VIEW OF POTENTIAL YIELD. WHAT HAS CHANGED?
There is a lot of suspicion about whether UK Govt is really committed to the renewables sector but unless they're going to default on their legal obligations they are going to need companies like Infinis to help them achieve their targets. In the meantime a yield of 7.5% suits me just fine.
Thanks for that. I originally bought in for the dividend and thought we would have heard something more about it by now. Its frustrating watching the price drop with no concrete info. I'll sit tight for now and hope for the best.
There was a trading startement on 12 February 2014. Seemed positive. No date for final results. Shares keep going down. I wonder why.
If I remember correctly that when the results come out we have been promised a dividend that would, at the issue price, give a prorate yield of about 7%. As year end was at end March would expect a trading statement any minute and results at end May/beginning of June.
Does anyone know if or when a dividend will be declared?
Does anyone have any any insight into why Infinis shares have been steadily going down, albeit slowly. There doesn't appear to be an adverse news. Company profits are reasonable, Dividend payouts will be very reasonable when they are going to be paid. Since Barclays rating of 3.10 overweight and the prices reaching 2.70 they just seemed to fall with no reason as far as I can tell !! Is it market confidence, Anyone ?? Cheers
Infinis Energy plc wins European Onshore Wind Deal of the Year for refinancing of its 274MW operational wind portfolio. Infinis has been announced as the winner of Project Finance magazine’s European Onshore Wind Deal of the Year for the successful £330m refinancing and consolidation of a portfolio of 16 onshore wind sites in the UK. The deal, which closed in October 2013, comprised a single new senior debt facility of £296m and ancillary facilities of £33.5m. Proceeds were used to refinance 10 existing project finance facilities markedly reducing the complexity of the business structure and the interest expense. The structure of the deal also released cash resources trapped within the previous debt facilities, granting the company additional balance sheet flexibility. The financing was completed five weeks before Infinis’ successful IPO on the London Stock Exchange. With its solid pipeline of future wind farm development, Infinis will take the experience of this deal forward as it looks to finance projects in the future. Eric Machiels, CEO commented: “We are really pleased that Project Finance Magazine has recognised the quality of the refinancing deal we concluded in October. It is a testament to the maturity of the onshore wind sector, the confidence which lenders have in Infinis and the dependability of our future revenues. As a newly listed company we will look to build on this deal and use it as a blueprint for future financings.” NOTES TO EDITORS About Infinis The Infinis group is the UK's leading independent generator of renewable power [1]. It employs approximately 365 people and operates 147 power plants with an aggregate generating capacity of 621MW [2], comprising:  121 landfill gas sites (330MW)  16 onshore wind farms (274MW)  10 hydro sites (17MW) Infinis is the largest generator of electricity from landfill gas in the UK, with a market share of about 40% [1], and is one of the leading owners and operators of onshore wind farms in the UK. Infinis has an attractive pipeline of development opportunities which are at various stages of consent and planning.
INFINIS ENERGY PLC (Symbol:INFI) Inclusion in the FTSE Midcap 250 index Infinis Energy plc, the UK’s leading independent renewable power generator, is pleased to announce that the FTSE Group yesterday approved the inclusion of Infinis Energy plc as a constituent of the FTSE 250 index. This change will be implemented at the close of business on Friday, 21 March 2014 and take effect from the start of trading on Monday, 24 March 2014. On 20 November 2013, Infinis Energy plc was admitted to the premium listing segment of the Official List of the UK Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange.
Had a punt at Pets, but no idea what I am doing. Up a wee bit today.
Anybody trying pets at home