Member Info for optimist13

Strategy

"The overall strategy for the Group remains in line with that adopted in 2016. The Board has continued to stabilise the financial position of the Group, which will enable as much value to be realised from the asset portfolio. That value will then be returned to shareholders."

https://investegate.co.uk/rurelec-plc--rur-/rns/audited-results-for-the-year-ended-31st-dec-2017/201806010700059301P/

Broomfielder, I agree the spread is ridiculous, but it is immaterial if you are buying in for the expected sale of the company. A read of the RNS's will confirm the intention of the BOD after repaying the loans is the disposal of the assets/business.

In fact, some current Board members were appointed by Sterling Trust who are in Administration which IMHO tells you what they want to achieve.

If you look at the shareholder information on the website, approx 75% of the shares in issue are in LTH's hands, and from previous discussions on this board and elsewhere, I reckon another 10% to 15% or so are held by private investors patiently awaiting a decent offer being made for the company.

This does not leave that many shares in free-float, so I do expect a sharp recovery as further confirmation of the BPAC loan repayments are confirmed.

Remember, the BOD cannot issue shares at less than 2.00p and given previous attempts, Sterling Trust's administrators would block any attempt to raise new finance.

The big question remains, how much is Rurelec worth once it is debt free and cash flow positive assuming repayments continue from EdS and the plant in Argentina is profitable. Also, Rurelec paid £25m for the two turbines that have now been written-down to £8.9m.

If the business was sold for its current net asset value, then each share would be worth circa 5.00p.

The next few months could be very interesting.

Just put a dummy trade through and it appears the two trades showing as sells were actually buys. Currently being offered well above the bid for shares, so the MM's are looking for shares currently.

And the buying continues. Full ask being paid.

not sure if the trades at 0.95p this morning are buys or sells. Can anyone confirm.

If you look at the interim report, there is a figure of £18.48m for trade and other receivables. The company have stated that £37.4m is owed by EdS and PEL in loans and outstanding interest. Unless I am mistaken, that means circa £20m has been impaired within the accounts against these loans, which could well be reversed in the fullness of time.

The £9.92m in the property, plant and equipment column relates to the assets in Chile and the written down value of the two turbines.

I see the repayment of the BPAC loan as a significant change for the company's future and the return to full production at EdS should herald a key change in the company's fortunes.

As always, DYOR.

mkt cap today at the mid price of 0.97p is £5.44m.

Net assets at the half year....£28m, plus the large impairment that has been previously been written off the EdS investment, but which now may be recoverable.

1.15p paid near the close. A couple of further buys tomorrow should see us move higher and the spread narrowing.

With the recent positive statement from the company, I now see very limited downside at the current share price but tremendous upside over the next few months as the loan is paid off.

All I will say at this stage is that I see the share price significantly higher than it is today if my statements prove to be correct.

I think anyone hoping for a retrace in the share price could be disappointed given the continued buying. And if contract news lands, all bets are off.

Carrefour, if the two trading divisions have achieved close to break-even in the second half of the trading year, then I think you will find any rise will be sustained on the back of the results.

The agreement with Comarco will give further positive news in the short term in my view given the positive statements made by the BOD.

Mike Joseph has not put in a huge chunk of money for mediocre performance. The news from Comarco should be very positive when it is announced.

Quite happy to continue building a position here.

The other positive aspect regarding the EdS plant in Argentina is the prospect of increased profit margin moving forward. In the year end results the following statement was made:

"The Directors believe that economic reform in Argentina under the Macri administration has fostered an environment where foreign investment in utilities has become attractive, incentivised by strong pricing of power contracts and that the wholesale market demand for Argentinian produced electricity continues to grow as the economy develops."

So, with full power being restored and the possibility of improved margins, the repayment of loans and interest to Rurelec from EdS could be a lot higher.

Executive Director's Statement



Review of Operations

In Argentina our 50% owned operating entity, EdS, and its parent company, Patagonia Energy Limited, have outstanding borrowings and interest before impairments of £37.4 million (2017: £37.9 million) due to the Group

https://investegate.co.uk/rurelec-plc--rur-/rns/interim-results-for-six-months-ended-30-june-2018/201809261200040238C/

moving up....+13.33%

Once the outstanding creditors are paid, the balance sheet is going to look a whole lot better.

Previous full year results release date:

26 February 2018

01 February 2017

19 February 2016

David Lenigas, Non-Executive Chairman, commented;

“I am delighted that we have completed our due diligence and decided to advance this loan to Comarco. This transaction and funding will allow them to fully capture the recent upswing in its port activities and for AAA to develop our relationship. Since our announcement that we intended entering into this loan, we have been approached by numerous parties expressing their interest to cooperate with us in various forms. This is significant, as this clearly demonstrates that we have managed to find a very valuable and uniquely positioned asset with potentially very large upside potential. The recent oil price rise has been highly beneficial for the port, as it is heavily exposed to oil and gas related services (although not solely reliant thereon). I am also delighted that the trading at both our fully owned subsidiary, Dynamic Intertrade (Pty) Ltd as well as our 46.8% owned subsidiary, Dynamic Intertrade Agri (Pty) Ltd, are continuing on their improved trend. We are now well positioned to grow the AAA business significantly and deliver the type of performance our shareholders expect.”

Just added a few more. Looks like the trade will be going through NEX and show as a sell as I managed to buy below the mid-price at 0.42p.

With the results due very soon and all parts of the business now performing, I am anticipating a much improved result over last year and a very positive forward statement given the investment in Comarco Ports.

Don't think it is going to take many more buy trades to move this up now that the BPAC loan is being repaid. £200k per month and it will be cleared on time by the end of June.

Rurelec will be receiving more than £200k per month from EdS in back interest and overdue loan payments now that full production has been restored.

Welcome aboard.

It will be interesting to see where the MM's take the share price now that a huge chunk of shares have been taken off the table.

I now see very little risk to the downside, and a contract win announcement from Gyrometrics should convince many more investors about the upside opportunities.