Member Info for Monkshood

It should also be noted that corporation tax changes this year knocked 5p off the NAV - there is only so much tax you can keep adding before it impacts the ability of companies to raise finance.

Also in the Times today-
'While Sunak and Johnson now agree on the principles of a windfall this is unlikely to be extended to electricity generators, which have also made larger than expected profits as the result of high energy prices.
A source said the policy had been examined by Treasury officials but was “complex” to implement and unlikely to form part of the announcement.'
As I suggested yesterday may be it was just being used as warning and leverage for those not initiating their cfd's to gain benefit of spot prices. They must also have noticed the stock market response which highlighted that extra taxes are not going to help them increase the funds flowing into renewables.....

The FT has said that the government is considering extending a windfall tax to include wind farms.
Although making increased profit I did think UKW (and other renewables) would avoid such a tax as It would seem that all this will achieve is reducing investment in the one area the government want to expand! They are only paying their inflation linked divi as normal, are not doing buybacks and are reinvesting further profits in new projects.
There have been suggestions that some companies are not fully commissioning turbines on CFD's so they can benefit from higher spot prices, so hopefully it may be a lever to put pressure on this area. rather than something which will be enacted.

I think that they have already have two large zoo installations as very positive sign.
The shares were around 7.5p when they were looking to a comparable number of seats in early 2020. Along with an established customer base in aquariums and having the zoo offering putting in 40 seaters at a time puts the company ahead of their position then so hopefully it should start to be reflected in the share price .....

Answered in todays rns
'The new seats, including motion platforms and VR headsets, will be fulfilled from stock currently held by Immotion.'
Good news with another large zoo contract.
I note with this contract they have an installed base of 468 which is around the amount we were looking at pre covid in early 2020 ('We expect the total number of installed, and operational headsets at the end of March 2020 to be around 400, with further installs to take place in early April, which with the additional 28 headsets, noted below, will take the total number of headsets in operation to 465.').
So the question is what capacity /availability of hardware do they have to go beyond this to 500+ this year?

They were edgy about this in the interview. They should have the cash + RCF to keep the gearing within their stated levels but I would not be surprised if they had one in the Autumn.
I thought the comment about the FTSE 100 was interesting but they would need more than the £400M to get there which lends weight to the possibility of a further raise. If it was going to be enough to get them very near or into the FTSE100 then there would be plenty of demand even at reasonable premium to NAV.
Q2 should be going well, the wind was low in April but the prices very high. This month the prices have fallen from circa 200Mwh to 100 (now increasing again) but it has been windier.
It is hard to see things being other than positive going forward, at least for a year or two.

WH Ireland have maintained their predictions for full year, making the point that Q1 is the quieter quarter.
They maintain that the stock is cheap and that their fair value assessment is 1450p.

Revenues are on track but EBITDA (even adjusted) is a bit low.
On the other hand it is a fairly defensive stock with good growth potential as we we move to stagflation/recession. Australia may have been flooded but they have major problems with drought in large areas of the US which will ensure they are busy this summer.

So what was/is fundamentally wrong?
The only thing you have flagged, on more than one occasion, was a director sell from a year ago.
There is clearly someone selling down but most of my small caps have been hit this week (except an insolvency company).

We had an update only a week ago! Immo aren't too bad for this and I am sure they will if there is something to say.

They had less than 200 at the start and around 300 headsets towards the later part of 2019, by early 2020 they had 430 headsets. I think that they minimised purchases throughout covid so (at least in theory) most of those currently in place should have been fully depreciated by the end of 2022.
They are expanding the number again now so you would expect these to start to show on the accounts going forward.

Depreciation came up in one of the presentations, someone may be able to correct me if I am wrong? I think that they depreciate their hardware in a linear manner over three years but actually believe it has a significantly longer life which therefore further complicates how you can view the EBIT/EBITDA numbers going forward.

From WH Ireland
Following this morning’s announcement, we leave our 3-year forecasts unchanged – FY 2022E Revenue £9.5m, EBITDA £1.5m, Net cash £0.7m, FY 2023E Revenue £11.5m, EBITDA £2.4m, Net cash £1.3m, FY 2024E Revenue £13.5m, EBITDA £3.2m, Net Cash £2.7m.

They issued an rns last June and it was discussed here at the time, it bares no real relevance to the current situation of the company.
No one uses Simplywall st as a creditable source of information for investing. but it seems strange that as an alleged investor you are quoting it to flag this almost a year after the sale.

Really?
It's hardly news as it was the 7th June last year.

Very nice - that's a 12% increase, so we are (were?) only on a 2% premium.

AGM-
I noticed that the AGM had this as part of their special business-
14-To consider and, if thought fit, to pass the following as an special resolution: THAT, the Company be and is hereby generally and unconditionally authorised to amend its Investment Policy to remove the 40 per cent Gross Asset Value (“GAV”) limit when investing in offshore wind farms.
Also near the end there is a couple of sections which have been struck out, including further mention of the 40% and -
'Investments outside the UK, in construction projects or in non-equity or associated debt instruments (~will not be the initial focus of the Group~) and will be limited to 15 per cent. of Gross Asset Value calculated immediately after each investment. ' (bracketed part struck through).
So does this mean that they are considering purchasing some non UK offshore wind farms??

Average for March came in at 7.8 which is about 18% off the 10 year average. However the strong winds in February mean that the average for the whole of Q1 is around the long term average.
Nav out later today, I have seen some estimates for the estimated nav being just over 149 but without any indication of the source of this value, it will be a significant jump if this is correct.

Revenue up18.5% - but as all ways with inspecs, with no further breakdown of the numbers, it is hard to interpret it beyond things seem to be going well.....

I thought that the conference call was very bullish. The company is clearly still set on a growth strategy. Nothing in the Q&A to indicate that there are any problems (beyond the current cyber issue at Funky pigeon) .
Not sure why the results caused the drop. Either more was expected or people had not listened to previous presentation where the company explained about the planned higher cap ex. Hopefully we may see some upgrades from the brokers now that there is more visibility to to recovery in revenue.
Providing covid does not rear its head in any meaningful way next winter, then going forward smwh looks to have the potential to be a very good investment.