Member Info for Monkshood

100M shares is a 40% dilution for existing holders.

The financial benefits of moving away from a batch process are more than lost with this. I know it is easy to view in retrospect and I am sure that they were not expecting so many problems, but if they had stuck to the original plan and settled for a little slower initial growth they would have had the financial resources to move to a production line system at a later date.

It will be interesting to see what impact this has.

Bloomberg-

The UK government is preparing to offer significantly higher subsidies for new offshore wind farms to get the country’s clean-power strategy back on track after developers shunned a previous auction.

The ceiling for bids from offshore wind companies in the next auction round is likely to be considerably more than this year’s £44 ($54) of guaranteed revenue per megawatt-hour of power produced, according to people familiar with the matter. The price, due to be published later this month, is likely to be set at about £70-75, one of the people said.

The 15-60p ride was quite fun! They have increased the number of shares since then but I assume the VCT ones will be reasonably sticky. If they announce another large contract it will do another big step up.

Well an even better harvest than I was expecting, 86% is a massive increase.

The move to AIM is welcome, I thought they may use this for an equity placing for the new winery, but they are not. I am not convinced hat they will be able to fund the £30M development from an rcf though. I think this ill be used as an interim measure with the expectation of a placing at a higher share price once they have achieved a higher share price on AIM.

Thanks for the AGM update.

The auction does not seem to have moved the share price, so the concept that it would lets the sellers out has not really held up , at least in the short term.

I think that they will need to show a larger volume of distributions from selling portfolio companies before we get a real rerate. Selling a very limited number above valuation is not enough to convince the market, it will always be the best that is sold first in these times of tight credit. The question will be how representative of the entire portfolio is this?

With low volumes of distributions they will also need rely on more debt to continue funding the buybacks.

In practice there seems little more they can do beyond waiting for sentiment to change - probably on the prospect of lower interest rates at some point next year.

Nowadays this is always leaky on the news, the update explains the recent fall. £8.5 m is well short of the £13m expected for year end.

Looks to be more short term pain for the shareholders....

It was always the risk when they moved from a well worked batch processing method that they initially proposed to the current production line one.

A good point to get in. Rates look to be topping out and the indicters I use as a proxy for Bips have all been heading back up after the recent lows.

By my calculations if they can get the share price near to nav and then issue around 200m shares at nav it would be enough to get them into the FTSE 100. This in itself would help drive the sale of any share issue which is why I don't think that they will be too worried about debt.

Whilst I am inclined to agree with you, I wonder if they hope that they can get rid of the discount then issue equity to cover some of the debt at a smidge over nav as they have done in the past?

I guess their concern maybe is if they reduce debt too much and are still at a significant discount they will be bought out by PE.

The cash generation in the last quarter was around £120M (with low wind), divi's paid were £51m so not quite the 3x indicated by Citywire, but then there is more to come with the London array and South Kyle not fully contributing to revenues in the quarter which maybe what gets the numbers to their estimates.

That's nearer the mark. In broad terms, £200M to cover the divi's, £100 M for share buy backs and the remainder for debt reduction.

Cheers, the key bit is -

'He said Greencoat UK Wind (UKW), the £3bn portfolio of wind farms run by Stephen Lilley and Laurence Fumagalli, would see its dividend cover fall from 3.2 times to a still very healthy multiple of 3.07%,'

More than happy with 3x divi cover on a >7% yield. It leaves plenty spare for the buy backs and some debt reduction.

I make it a 7.6% yield at the current share price.

I too was thinking that bedbugs and Asian hornets have got to be good news for RTO (although no one much else).

There have been 3k Asian hornet nests destroyed on the Cherbourg peninsular alone this year, so assume that RTO picks up some of this work across Europe it has to be quite a growth area. The first ones have now also been found in the US so it is only a matter of time before they too have this problem.

I thought it would drop on the trading update but not quite as much as it has. I have been out of rto for a while but it's looking like it may be time to buy back in.

I decided not to offer any for tender as I am holding for the longer term and figured that some of those selling would be buying back in after the tender so the gains would be marginal.at least in the short term. I have all mine in an ISA wrapper so tax is fortunately not an issue.

Are you going to the AGM again this year?

It should be pointed out that Cavendish only retained the same forecast price because the start of this new contract falls beyond the time period of their current target price.

After bips went ex div in July it still had 0.83 p of income showing, after going ex div yesterday this has increased to 1.25p.

So they are comfortably going to have enough income for a good divi cover for the year as well as extra to top up the shareholder reserves again this year.

Bloomberg-

Altice International, one of the three branches of billionaire Patrick Drahi’s troubled telecommunications empire, has won some time to tackle its debt load by refinancing a bond in the loan market.

The firm raised €800 million ($846 million) — up from the €500 million originally marketed — in a term loan due Oct. 2027 via borrowing unit Altice Financing. Priced with a discount of 96 and a margin of 5 percentage points over Euribor, it will redeem a €600 million junk bond due in Jan. 2025 and repay drawn amounts of the revolving credit facility.

Finncap and Zeus are pretty much in agreement about slightly reduced margins due to inflation (66>60%) with the subsequent impact on profits . Outside of this probably the main concern which will weigh is the comment at the end of Zeus's note -

'We understand management are considering new sources of finance, should this be required.'

It probably explains the share price weakness and would be a good point for the management to address in their presentation.