Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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https://www.investorschampion.com/downloads/cocomments/Atlantisresources20200821a.pdf
£180m-£200m is mentioned in the Proactive interview and £180m was the figure mentioned before that. 18 months to construct, planning decision due by mid October and so you are looking at the end of 2022 to complete. Once operational, annual EBITDA is supposed to be in the region of £30m-£50m per annum.
Old research piece but a good summary
https://www.investorschampion.com/channel/blog/simec-atlantis-energy-trading-at-a-fraction-of-independently-assessed-net-a
I don't agree that a large equity raise is imminent or necessary. The cost of debt for offshore wind is now lower than it is for oil and gas companies. More likely they will raise £10m or so in new equity and bring in another partner.
The adoption of the financial reporting standard IFRS15 'Revenue from contracts with customers' in 2018 appears to have significantly increased revenue and profits for that year and then the company realised that costs were going to be much higher on two projects and so revenue and profits already recognised in 2018 had to be reversed in 2019. Obviously the failings in project management are a concern but it seems it would be best to take the two years together to smooth out the effect of the reporting change. On a positive note cash has increased from £827k at year end to £1.4m as of 31st May. Trade receivables increased £1.25m during the year but some of that must have been due to the £1m of R&D tax credit (now received). There are £875k of borrowings due for repayment this year. I am more positive that there seems to be increased focus on cash and cost control. I wouldn't want to make any predictions for the current year though.
New covid 19 treatment is manufactured by Beximco
https://beximcopharma.com/products/odeson.html
I would also assume that Uskmouth development will be financed by debt assuming all the hurdles are successfully negotiated. The further development of Meygen might be a bit more problematic and require some new equity to be raised.
As far as I am aware there is still £32m to come from the equity stake in Uskmouth sold to Equitix. Part of RNS below:
20 November 2018
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis" or the "Company")
Atlantis signs Heads of Terms to sell 25% shareholding in the 220MW Uskmouth Conversion Project to leading UK infrastructure fund manager, Equitix
Highlights
· Atlantis has signed Heads of Terms to sell a 25% shareholding in the 220 MW Uskmouth Conversion Project in Newport, Wales ("Uskmouth Power") for £32.9 million in cash to leading UK infrastructure fund manager Equitix
· This implies an equity value of £131.5 million for Atlantis' current 100% shareholding in Uskmouth Power
One has to wonder why five weeks after year end do the management only then discover that a couple of projects have gone badly awry, coupled with having burnt through a load of cash when they predicted that product investment was nearly finished and the cash would start flooding in. Can’t see this company staying independent for long, which is a shame as there is value in there.
Debtor days have increased from 47 days (audited) to 79 days (unaudited) since the year end. This doesn't smell right to me. Are there some trade receivables that are going bad or have sales been brought forward to June in order to flatter the sales figures. Either way, not a good sign.
The company is poor at communicating and doesn't seem to be concerned with the cash burn. In the space of 18 months the company has gone from having net cash of £1.3m to net debt of £0.7m.
Market cap is now just £9m and PEG must surely be on the radar of some of the private equity firms out there. A lowball bid of 25p would probably be enough to tempt shareholders which would be a shame.
Perhaps it is a company run by engineers with little regard for the finances. Just my opinion, will still hold the shares as things must surely improve from here. Good luck to all long term holders.
GFRD should drop by £5.88 to roughly 80p a share when shareholders receive 0.574 Bovis shares per GFRD share. Rump GFRD would have then have a market cap of £90m and will have about £300m in cash and will hopefully generate profits of £5m to £10m a year. Therefore the market is assigning an enterprise value of -£210m to the rest of the business. Which basically means analysts think there are lots of hidden liabilities left in the construction business or it will consistently lose money or a bit of both.
Hi Londoner, I appreciate that a lot of the liabilities are current and as with any takeover the price payable will be subject to working capital adjustments. The bid was rejected because the BOD and advisers considered the rump construction business would be close to insolvent. Don't forget there will be hidden potential liabilities that are not mentioned by the company or at least not clear where they sit, such as potential contract disputes and pension liabilities.Also the revolving credit facility would have to be paid off and cancelled. Obviously if the offer was pitched at the same level but was 50% cash say, then those worries go away. Bovis could probably afford to take on the debt and then pay it off quickly once the takeover goes through and it has had a chance to improve the balance sheet efficiency of the combined business. I think that is why the share price is rising as the view is that Bovis will return with an amended offer. GFRD is simply too cheap at the moment IMHO.