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The article is incorrect "About 22% of the EU’s total energy consumption came from renewables in 2021, " They are confusing energy with electricity. It's a common mistake with reporters. Energy includes gas, coal and oil which of course is not electricity if it is used directly as a fuel.
Thank you for that BBN. Your posts contain little we didn't know but you put it together with the skill of an analyst. You saw the bid picture and where everything fitted. Much better than I could have done. Can't wait for your post after the finals are published. No pressure.
From a non accountant's view, it looks like contracts up to the turn of the year were loss leaders but now all the contracts bar one after the reporting year have a gross profit attached to them. From memory, we were told that a contract they expected and flagged in 2022 had been deferred and this would have had an affected revenue of course and, if this was another loss leader, I'm rather glad about that. I don't know how big that contract was.
As for cash burn, the RNS talks of costs reduction, so It may have improved, but IES is subject to general inflationary pressures like all of us. The cash position is further complicated by the LODES award and the costs of financing increased production to meet demand so who knows?
As to why they've chosen to announce this segment of news now one can only speculate but, apart from the regulatory obligation to announce material news that might affect valuation, it could be a ploy to boost the SP but I rather think that, because of the somewhat negative talk about loss margins (which the Market seems to have latched on to today) it could have spoilt a very positive finals presentation later. Focus should now be on the Forward Looking section of the finals which should include the pipeline.
Overall a mixed bag but at least IES is making a gross profit now and it looks like that will be the case continually in the future. As always the Market hasn't liked any mention of a loss, hence the drop IMHO.
Additionally I'd like to see some padding to the Mistral RNS especially how Gamesa fits in with the project. It looks like the pilot could be financed and constructed by IES on their own so what is Gamesa's input? I understand that Gamesa is still fully involved. Are they going to be the leader in the next pilot? The SP certainly needs a boost and the Market realising that Siemens is absolutely there could be the push the SP needs..More information please Larry
Thanks for that Risky. It does look like Mistral has been taking longer than we first thought but the first pilot has been announced and, from what Larry said, there will be multiple pilots so more announcements coming up this year probably. The pilots are essential and were used for VS3 before Mistral. Everybody knows that pilots will be subject to tweaking and maybe refining and that's not what you want in a commercial product. Customers would not be happy with that.
By the way, I've communicated with IES over the lack of mention of Gamesa in the Mistral RNS and they said that Gamesa is still fully involved with the project and are still fully committed to Mistral which is reassuring.
Despite the perceived delay, when the commercial rollout begins next year we will have forgotten about it and be debating how many MWs IES will be selling in 2024.
There's a lot to this RNS. Firstly a pilot, or prototype derivative if you like, is never the same as the commercial product. It was never going to be 40MW because that scale is not needed as long as the pilot is capable of being scaled up without too much mutation. The point of a pilot is to iron out the blips and demonstrate capability. It obviously works well in the factory or it would never reach pilot stage.
The timescale surprised and somewhat disappointed me. I took the original 2 year project to mean Mistral would get to the pilot stage around this time, not in almost a year's time. It's no wonder the Market has shown scant enthusiasm. Having said that, the project has not collapsed, as it could have done, and IES has secured some additional funding along the way. I'm not sure IES needs any more pilots so news on Mistral will be scant for quite a while I reckon.Anyway, project ourselves forward a year and IES will probably be announcing large orders and have a facility to fulfil them. It will also have a world class unique product that can fulfil a growing huge need. Whats not to like about that?
It was interesting that Seimens wasn't mentioned. It looks like IES are going to produce this pilot themselves so where is their partner in all this? 200MW sounds a lot but to a company like Seimans it's small beer. We can expect more news on that front this year.
So overall the RNS was positive but well flagged. It reenforces the fact that IES is on its' way to a big future. We can now look forward to all the other orders that should be announced in the coming weeks and months according to Larry. The SP will follow.
Looks like IES are really and at long last on their way. Larry didn't dispute, I think he actually agreed with it, the revenue projections of doubling every year from now on coming from Canaccord. Pilot project coming this year as already been noted and an increase in the pipeline. All positive stuff. Add all that to the recent LODES contract of £11 mn and the company's position looks pretty healthy. The only thing missing is the SP which is ridiculously low considering the aforementioned. That will correct in time, sometime this year is my guess.
As far as I understand it, and I think Larry said it once, Mistral is not using any new and untested technology. The flow battery is essential using IES's know how and existing technology. What has taken the time is creating a new and much bigger box for the technology and changing the hardware generally.
I've no idea how big IES's part is in all this nor what percentage of profit they are getting. No doubt we will be told more in due course but, as to timescale, Harper said last September from memory that the project should roll out in a bout a year so that's 4-5 months time. As in all these projects, its difficult to be precise about timing as there are always surprises, good and bad, so I'm looking towards the end of the summer with at least one update before that maybe.
If it all comes good, and I can't see why not, then it places IES on a different level IMHO. There is a big demand for grid scale battery installations and, with a competitive price already flagged, I don't why Mistral will not be a success.
It's all guesswork about future revenues. The problem IES has ATM is the IBM syndrome. Years ago their adverts included "nobody ever got the sack by buying IBM." IBM were world leaders in large scale computer installations then and the parallels to lithium batteries are obvious. Lithium is the default go-to battery that dominates the market. Its a safe choice. If IES can break people away from this mindset, the sky's the limit. Stick a few Mistral installations around the World and suddenly VFB's become buyable. IES will continue to make inroads without Mistral but life becomes easier with Siemans onboard.
A 75p target price represents just under £150mn valuation for a company that has sales of £117mn, which will be on upward trajectory, and eps, I assume that means earning per share, of 9.1p. If I've done my sums right that give a P\E ratio of around 8 which, to my mind, for a growing tech company, in profit and in a huge and greatly growing market that is politically favoured is ridiculous.
The interview could be an eye opener for many but they missed a trick by not saying that, apart from Oxford, they have orders from all over the world. It sounded as though they were still in the proving stage and not the commercial stage. Good to get on to national TV though.
An old stock market saying is "buy on the rumour and sell on the news." Today, although the SP is up, the selling is obvious. If previous patterns are followed, buying should increase in the following days when PI's have time to cooly look at the news, digest what it means for IES and plan an investment strategy. Certainly a £22mn increase in the order book should attract some attention.
I quite agree Hawker. Companies like RENX at this stage of development are always running out of cash, even beyond breakeven. Amazon was running at a loss for years and needed eternal funding. What we should focus on is does RENX offer something unique and are medics and insurance companies willing to use it and pay for it so RENX can make a decent profit? If the answer to both questions is yes then we have to sit back and watch the very capable team bring it off.
Not necessarily Dive Centre. Losing a recommendation for a takeover should not sit well with any management and even this lot might not be able to withstand the pressure to leave that would surely follow.
I think that this RNS says more about the FDA than it does about RENX. Clearly the FDA is falling down on the job. RENX applied to the FDA ages ago and decision making should have been a fairly straight forward and speedy process. After all, there would be no risk to the patient from the tests. This RNS is just updating the public on the continuing malfunctioning of the FDA.