Member Info for rivaldo

Lots more work for SUR - the government is considering mandating that all domestic boilers in Great Britain be “hydrogen-ready” from 2026:

Https://www.insidehousing.co.uk/news/news/government-considering-mandating-hydrogen-ready-boilers-from-2026-79420

and up again today. Hopefully any sellers have now departed the building.

Noticed this interesting snippet today - the Government are to invest £110m in 5G and 6G.

The £80m for a state-of-the-art UK Telecoms Lab to test resilience etc and the acceleration of the deployment of ORAN should both be good news for CLX as the market leader:

Https://www.techmarketview.com/ukhotviews/archive/2022/12/13/uk-government-to-invest-110m-in-5g6g

"Tuesday 13 December 2022
UK Government to invest £110m in 5G/6G

Research and development on next-generation 5G and 6G wireless technology is to be ramped up as part of a £110m government investment.

In the package, three UK universities, University of York, University of Bristol and University of Surrey, will receive a share of £28m to team up with major telecoms companies including Nokia, Ericsson and Samsung to design and build networks of the future such as 6G. The move follows Ericsson and Samsung’s recent decision to set up 6G research centres in the UK. 

The aim of the investment is to ensure future network technologies, including 6G, are designed in a way that promotes a more diverse and innovative telecoms market, and brings an end to current network setups where all equipment within a network must be from a single supplier.

The package includes £80m for a state-of-the-art UK Telecoms Lab being built in Solihull in the West Midlands. The facility will be run by the National Physical Laboratory, to research and test the security, resilience and performance of 5G and 6G network technology. It will also create dozens of specialised jobs in telecoms and cyber security for the region.

Also announced was a new R&D partnership with the Republic of Korea which aims to accelerate the deployment of Open RAN. The £3m project (including £1.2m from UK Gov), will focus on the power efficiency of emerging technical equipment, one of the technologies main obstacles.

5G and 6G technologies will be crucial for both the future of national infrastructure and in enabling a wide variety of other technologies from automated cars to remote healthcare. However, while it is good to see such investment, the existing infrastructure needs just as much focus. 3G/4G coverage is still patchy, especially in rural areas, and UK fibre connectivity also varies widely. If we can first establish a strong base level of connectivity across the UK it will make it much easier to roll out more advanced technology down the line."

Singer Capital Markets retain their 2.5p target and Buy.

They see 0.1p EPS for the year ended last September, rising to 0.15p EPS for the current year - a P/E of only 7.2 at 1.075p.

In summary they say (note the year end error as it's September, not December!):

"React has issued an update, confirming it has continued to trade strongly since its year end update. Q4’22 was especially strong and this has continued into the current year. There is strong contract win momentum across all divisions and this underpins the Board's optimism over the outlook for the current year. Our forecasts are unchanged and we continue to view a Dec. ’23 P/E rating of 6.7x as undemanding for a defensive business with high recurring revenues and an attractive margin profile. We therefore remain at Buy."

Cheers DaddyAIM, very useful info. The news certainly seems to have been well received.

Looking good chart-wise now too. Hopefully just the start given CNIC's huge undervaluation relative its sector comparators.

Today's trading update is very encouraging.confirming "especially strong" trading across the group.

LaddersFree in particular is roaring ahead. It achieved £1m turnover in 3 months, whereas annual turnover was £3m in the two years prior to acquisition, i.e turnover is already up 33% pro rata in only 6 months post-acquisition.

Fidelis continues to perform well, and React has continued its "strong recovery".

The closing comments are very positive:

"We are therefore pleased that trading in the last three months of FY22 and into the current financial year, has been especially strong across the Group. All divisions continue to win a broad spread of business providing positive margin contribution and cash generation as well as providing long term income and underpinning future performance. This positive start underpins the Board's optimistic outlook for the current financial year.

Commenting on the trading update Shaun Doak, Chief Executive Officer of REACT, said:

"Our teams in all divisions continue to work hard to secure new profitable contracts and build sustainable growth and longer-term predictable income across the Group. The key to our success lies in the high-quality services we provide to our customers, and we will continue very much to ensure that this remains the case. I look forward to reporting further positive progress as our financial year progresses."

Most important from this article is the confirmation that expectations remain in line with guidance with £7.8m adjusted EBITDA and 4.6p EPS for the year just ending and 6.3p EPS for the new year. It would be interesting explanation to say the least if those expectations for 2022 were not met given that we're now only three weeks from the year end.

ADF also state that further acquisitions are on the cards:

"They still have funds of their own left from the IPO to utilise he says and any future deal will always have a deferred and contingent element, so they are very much in the market for another addition that ticks all the right boxes."

Another nice contract won "recently" with a fuel distribution company. Suckling Transport have annual turnover of £21 million, so quite a sizeable company:

Https://www.touchstar.co.uk/blog/sucklingtransport

Up 3.5p already after a sudden burst of buying. Ridiculously undervalued at 71.5p imho given the forecast of 9.2p EPS for the current year.

Plus the current cash pile at £23.2m is forecast to rise to £32.3m at Sept'23, i.e over 25% of the m/cap! Which implies a crazy ex-cash P/E of around 5.8....

Https://martinflitton1.wixsite.com/privatepunter/post/adf-still-in-the-frame-12-12-22

Nice extract - 4.6p EPS forecast for the year about to end, and 6.3p EPS forecast for next year::

""For the first half revenue came out at £12.6m with adjusted EBITDA of £2.6m which seemingly implies a lot of work to do in the second half to achieve the anticipated numbers out in the market from broker Cenkos. This sees a calling for full year revenue of £31.8m with adjusted EBITDA of £7.8m and a profit after tax of £3.5m which in turn provides for EPS of 4.6p. Given that ADF has only recently announced the acquisition of Location One, as a holder of the shares I concluded that if there was any hint on the company not hitting the anticipated numbers, then something would no doubt have been announced to the market at that time. I ask the question in relation to a confidence in meeting that current guidance. Richards says that expectations remain in-line with guidance."

99p now being paid for shares this morning.

Well well.....looks like Ben's M&A-fixated approach lost support from the directors.

Now we have a transition to maximising shareholder value, with Ben making way as CEO to the current CFO, and the old FD becoming CFO.

Good to see it's relatively amicable, with Ben being thanked and commenting positively.

The prioritisation of debt reduction - and the start of share buybacks - could bring a sharp re-rating assuming that's what the markets have been waiting for.

Plus we're told today that trading is "at least" at the top of constantly upgraded expectations with continued strong trading.

Exciting times!

Almost back to pre trading statement levels now :o))

Nice rise today. And good news from HE1's RNS earlier this week:

Https://www.investegate.co.uk/helium-one-global-ld--he1-/rns/balangida-basin-gravity-and-magnetic-data-analysis/202212050700045190I/

Extracts:

"Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to announce the completion of analysis of its proprietary high resolution Falcon Airborne Gravity Gradiometry ("AGG") and aero-magnetic data over the Balangida Rift Basin ("Balangida"). This work will lead to further helium gas exploration target generation in Balangida widening the overall Company opportunity in Tanzania."

"In collaboration with Getech, the technical team have developed an innovative workflow, using our own Falcon AGG data with a range of remote, regional and land-based geophysical datasets. Sophisticated compound data analysis improves our confidence in the results of the inversion study, giving better understanding of rift geometry, basin evolution and subsurface structure to aid our exploration programme.

"The workflow developed at Balangida has demonstrated robust analytical techniques that can now be applied to regional data over the Eyasi Rift Basin. This will enable the technical team to evaluate prospectivity potential in both basins and to plan for further geophysical studies in 2023 as we progress our exploration programme."

" Helium One have partnered with leading global gravity and magnetic geophysical specialists Getech in completing a 3D inversion study of high resolution Falcon AGG and aero-magnetic data over the Balangida Rift Basin, north-west Tanzania....

..... The technique successfully developed at Balangida will now be applied to the available data we have covering the Eyasi Basin. Getech have commenced this phase of the work, with internal technical workshops planned throughout December to review the results. Conclusions of this work will allow the technical team to draft a forward work programme for both basins, with a view to acquiring 2D seismic in 2023.

Successful drilling at Tai will allow the Company to accelerate exploration across both basins towards drill-ready status, expanding our portfolio of world-class, high-grade, primary helium exploration assets."

on RNWH's web site. The tone is extremely positive, and it seems that all divisions are now performing well and have very good prospects. Plus there would appear to be room for further and material-sized acquisitions.

Here's a link:

Https://vimeo.com/776540119/e01f67df23

It's interesting to see Walter Lilly described as non-core, although the presentation commentary is effusive, describing the very healthy order books. Perhaps this would be a good time to sell it to supplement the already healthy cash flows?

Lilly's news page backs up the good news message with news of various contracts which I don't think have been posted before:

Https://www.walterlilly.co.uk/news/

Excellent Q2 numbers from Major Drilling, the largest player in the sector - which bodes well for CAPD:

"Major Drilling Reports Strong Second Quarter,
Net Earnings up 65% as Industry Upcycle Continues"

Https://www.majordrilling.com/wp-content/uploads/2022/12/Press-Release-Financials-and-Notes-Q2-23-Market-Dec-8-Final.pdf

Just caught up with the Investor Meet presentation. A few points of note aside from comments on the numbers:

- they've know LTE for 6 years prior to acquisition. The late founder's family had no interest in running the business and wanted to sell. Acquired on a low multiple, with high revenues but relatively low profitability. SDI are confident they can increase profitability, particularly via working together with Monmouth and Safelabs as regards sharing equipment servicing etc
- Frasers were brought to SDI by Westcott Corp Finance, who were previously Safelab's advisers. Growth here is likely into the USA and China, also with a German office
- a number of SDI's businesses have trading back-ended/weighted into H2, which should bring "healthy sales". Mike was positive about meeting expectations despite the difficult global economic conditions
- are SDI pursuing deals/acquisitions in the USA? Yes!

Also interesting to see our relatively new CFO take up an NED position at Porvair today:

Https://www.investegate.co.uk/porvair-plc--prv-/rns/trading-update--notice-of-results-and-board-change/202212090700041382J/

Perhaps there might be some nice business opportunities for SDI here?

"Porvair is a group of specialist filtration, laboratory and environmental technology businesses. Its businesses design and manufacture a range of bespoke consumable filtration products that are used in a range of niche filtration markets. It operates in three divisions: Aerospace & Industrial; Laboratory; and Metal Melt Quality."

WH Ireland retain their 9p fair value for DKL.

They forecast €4.6m EBITDA and €0.4m PBT this year, rising to €8.0m EBITDA and €4.2m PBT next year - and they state their assumptions are "conservatively framed".

For 2024 they see €10.7m EBITDA and €7.2m PBT, i.e 0.8p EPS (from 0.5p EPS in 2023):

Extracts:

"November update – Strong CPO pricing maintained ahead of 2023 high season

Today’s monthly production update from DKL highlights continued strong local pricing for CPO along with positive commercial developments in DKL’s cashew business. Commissioning of the cashew plant continues to progress towards the company’s target capacity of 10,000 tonnes of raw cashews per annum in FY2023, and with customer relationships developing in tandem, the company looks well positioned to deliver on our expectations for FY2023.

Local crude palm oil (CPO) pricing remains near all times highs in the local Cote D’Ivoire market, supporting a positive outlook as the company looks forward to the 2023 palm oil high season (February to May). While recent yields of palm oil fresh fruit bunches (FBBs) in the region remain below FY2021, the record harvest in FY2021 presents a challenging comparator and strong CPO extraction rates and high prices should help deliver a strong financial performance for the CPO for the full year in FY2022. Overall, DKL’s two fully-invested and profitable processing activities should shortly provide a positive cash flow, supporting the company’s plans to reduce levels of debt and grow as a much larger diversified agro-industrial business."

"Forecasts / Valuation

On modest single digit forward multiples, and with good momentum and the prospect of cash generation, we retain our broadly based (DCF and relatives) 9p fair value assessment (see our initiation note : DKL Note)."

Bleedin' asterisks! Just enter Directors Talk interviews instead of the asterisks and you'll get the link.

The Norway testing of the "gamechanger" SABER is just "weeks away" and is scheduled in. Worth emphasising that the principle behind SABER has already been proven by Shell, and so just has to be verified in the field:

Https://www.***************************/enteq-technologies-investor-presentation-2023/4121093847