Member Info for Adastra

The acquisition cost is on a p/e of less than 4 Sis, you forgot to knock off the £0.8m assets coming in house :)))

Totally agree - great buy. Should gap-jump on this news as it is super value. Great use of spare cash bringing in £0.5m plus profits for £2.75m max ( and even spread over 2 payments). Good value and BoD should easily add these capabilities into growing business. Neat.

The Development of a Small High Speed Steam Microturbine Generator System NASA Astrophysics Data System (ADS) Alford, Adrian; Nichol, Philip; Frisby, Ben 2015-08-01 The efficient use of energy is paramount in every kind of business today. Steam is a widely used energy source. In many situations steam is generated at high pressures and then reduced in pressure through control valves before reaching point of use. An opportunity was identified to convert some of the energy at the point of pressure reduction into electricity. This can be accomplished using steam turbines driving alternators on large scale systems. To take advantage of a market identified for small scale systems, a microturbine generator was designed based on a small high speed turbo machine. This gave rise to a number of challenges which are described with the solutions adopted. The challenges included aerodynamic design of high efficiency impellers, sealing of a high speed shaft, thrust control and material selection to avoid steam erosion. The machine was packaged with a sophisticated control system to allow connection to the electricity grid. Some of the challenges in packaging the machine are also described. The Spirax Sarco TurboPower has now concluded performance and initial endurance tests which are described with a summary of the results.

Atmosphere Control International (ACI) is the world's leading supplier of air purification equipment for surface ships and submarines and the supplier of choice for many international navies. http://www.naval-technology.com/contractors/hvac/atmosphere-control-international/ This is the technology you are buying into.

Joint development Spirax-Sarco TPG Steam Microturbine. http://www.spiraxsarco.com/global/ie/Products/Documents/Spirax_Sarco_TR_Steam_MicroTurbine-Technical_Information.pdf

As you point out there is a fair element of the two MoD contracts in the price but confirmation will cement the cashflow for 8 years. The nature of the 2 contracts relate to submarine atmosphere control systems (new and maintenance) and the fact that TP group is the sole supply negotiator is an indication of just how niche, specialist and 'sticky' these contracts are. MoD contract negotiations are usually slow. Compound this by the MoD negotiating 'continuity' with 8yr contracts with around £50m and it wouldn't surprise me if it needed signing off around the government budget window in April. Confirmation may not only trigger a rise, it may well precipitate a bid for TPG! As for the increased cash position, currently £9.2m, this is probably down payment on one of the numerous sizeable orders recently won. The IP relating to the frictionless compressor/generator is the elephant due to variety of applications. The steam micro generator is now being rolled out by Spirax/Sarco as a joint project, and gas hub step-down generation is still being evaluated and tested in the USA. Add in the original concept of down-hole gas pumping and specialist engineering and nuclear tech and I don't see much downside; rather the opposite. I think this will strengthen over the coming months and gap-jump to a new plateau on MoD or new significant contract confirmation. Just my opinion, but the tech is both niche and compelling.

A combination of TP group/Spirax Sarco power generation from waste steam fed into RedT vanadium redox batteries would work rather well in industrial settings.

It's great to articles and tie-ups like this exploiting the original Corac IP. http://iopscience.iop.org/article/10.1088/1757-899X/90/1/012062/pdf The Spirax steam micro generator has great potential, indeed the micro turbine aspect is hugely undervalued once you start to look at applications in all areas of power generation. Frictionless bearings, maintenance free and generating 'significant' power fro waste steam/heat can only benefit all parties IMO. Bring on more - especially the American Gas pressure let-down capacity to generate electicity from normalised gas pressure reduction where it currently is just escaping as waste heat.

AUNBoy, doesn't really matter what the personal ethos or opinion of the CEO is really. This is cutting edge and advanced cutting edge at that. Barriers to entry are high and the IPO, regulated production unit plus Phased trials in a variety of conditions with unmet need and positive results. Believe me, there are plenty of other capitalist predators out there just waiting for morsels like this and the exchange rate beckons USA/Japan. Watch this space as time rolls imo.

MCap £83m; Cash in bank £60m; positive trial results in Pisces with other separate trials underway. This is a sitting duck at effectively £23m for all IP, facilities and production! If it floated today it would be valued at multiples of £23m! There must be a few big boys out there considering buying the company methinks. Cheap buy for America or Japan.

Agreed, but don't underestimate the true potential here. If either Pisces2 or the RP trial shows positive results, as I believe they will, it completely ignites the stem-cell therapy platform. Japan in particular is watching the stroke trial intensely as it has already indicated that it would 'fast-track' SCT from phase1/2 to early use. America is seen to be taking a similar stance. A lot of the risk is offset by cash till end 2018 and having multiple trials in place for different conditions. Bear in mind also, that the target conditions - stroke, RP and glioma - have huge unmet needs in the way of drug therapy. Reneuron is creating the pathway for SCT and I expect volume to increase markedly this week as the Pisces2 results are released next week. The possibilities for interventions in stroke, Alzheimers, RP, cancers and a variety of other problem conditions could open and that makes RENE a very interesting niche company IMO.

Agree Sis. The T/U [Nov 30th?] should provide a good re-rate event if you read the background opimism in the interims. With Angelides [ex-Next] coming on Board last March and repeatedly buying into FC, the update should show wholesale stabilisation and growth with good sales of clothing in October and November. Fingers crossed that the Angelides effect is on course. The much-heralded bid interest is also present with NAV around 50p a share.

Hi Guys; Looking at the embedded IP value of TPG one has to remember that it evolved from Corac [CRC] - a company which spent tens of millions on R+D. TPG is now firmly in the specialist engineering arena having digested the submarine air-purification business that is now producing excellent income streams from MoD and further afield. Corac'c DGP downhole gas compression is worth a shedload IMO as its technology is great alone, but can be reverse-utilised to generate power from gas-stepdown [USA trials ongoing] or in generating enery from waste steam [Spirax-Sarco tie-up]. Add in the ability to cross-engineer and add into aerospace etc and you start to see the real scope in TPG. I know it sounds heady but I reckon the BoD would seek £75-100m at least given the income prospects. Don't underestimate the protectionist interest if bids come in here as Spirax and Bae plus the MoD are all reliant on the IP. A very interesting cash rich company and far too cheap at this level.

Hi Sis - yes, Spirax-Sarco is using TPG technology to generate power from waste steam which is a perfect fit for them. Lots of IP from the previously cash-hungry research side which is now being commercialised. My eye stays on the unique position that TPG has in submarine air systems and its applications to many other fields eg Nuclear and Aircraft. The MoD contract that is due to be signed of either this quarter or early 2017 is the unfactored aspect at present. Given that TPG have said that they are believed to be the sole supplier, this £50m/8yr contract must push this £20m MCap higher. Also interesting to see that the recently acquired Dukinfield facility has just won a £500k contract to complete Q1 2017. Lots happening here.

http://www.edisoninvestmentresearch.com/research/company/tp-group This is a definite winner post Trumptown

MCap<£20m with £7.5m in Cash. Unique IP and Submarine specialist with £150m forward contracts up for grabs with govt as 'sole supplier'. All directors have been buyers - good value with 8p target near to medium term. Specialist gas reduction program and Spirax-Sarco projects in for free.

October sales were good for UK clothing retailers and the current cold spell is arriving just in time to boost pre-Christmas sales. Having the ex-Next director on Board also helps raise profile especially with t/o interest circulating and NAV over 1.5 times current MCap.

The 89647 is a BUY not a sell................its mine. Looking good here for a rerate imo.

Think others are noticing the window-dressing. I think the big disappointment is that despite the two RNS's we still have £9.18m debt to service at 12% pa which is onerous and approaching our MCap at this level.

I have to agree on the £9m debt. I've been looking through accounts and cant see any provision made for that £1.07m of indebtedness against TTMV which concerns me. I was under the impression that we were free of any outstanding commitment. That means my Wakey Wakey was premature! This looks a little like window-dressing so I'm returning to the fence like yourself awaiting developments.