RE: Support Broken1 Oct 2021 13:03
Lots in the presentation and Q&A. Most of it old but there are some new points and an acknowledgement that Q4 is a pivotal one for IES. One of the things that came through is that risk is in even more short supply in projects and this is due to the global economic and supply environment largely due to Covid initiatives affecting transport delays and costs and costs of materials etc. The problems are not confined to IES and projects are being delayed because of this environment.
The ESO project is turning out to be very important in this risk averse environment because customers want to see the thing working and it looks like some projects not even in the Pipeline category need that proof of capability. They have had problems with the first cluster which they didn't anticipate, leading to delays, but these are being solved and will add to their knowledge base for future projects to make installation quicker. The ESO commissioning is "very, very close"
On top of the ESO project the Scottish Water and EMEC projects are due to be delivered this year and, according to the CFO, IES is due to receive £4 mn revenue by the end of the year. Mentioned but not specified were other projects nearing contract signing.
I am surprised that a figure has not been put on the fund raise but the flagging up of the need to fund raise is interesting. Reading between the lines, I think that the release of the news at this time was a deliberate ploy to get the inevitable fall in the SP out of the way, although I think the amount of the fall surprised them. IES anticipated a fall but know that there will be many pieces of positive news coming before the fund raise is officially announced (about 6 months away) and they banking on a very positive reaction by the SP which will mean less dilution for us. That's IMHO of course.
Overall, I think the recent fall was overdone and, like lots of these things, a retrace is on the cards. It's only my opinion though.
Sign In
Follow the stocks
