Member Info for shandypants2

SNX appointed a new broker , Singer Capital, a month or so ago.

It would be good if they could publish some coverage on SNX as we complete our Nov 2025 YE as this share really needs some positivity and it is their job. I have emailed them - no reply yet received

I think the $250m funding from Sidara once paid will confirm that the deal is almost a formality. Until then there is still some uncertainty - hence the discount.

With the GM on 11/12 does this mean the Sidara money will not be paid/made available until after that date?

IMHO the deal will be completed so the over 20% discount looks very generous

A general meeting has now been arranged for 11th Dec.

The pieces are slowly being completed

Yep, all metrics are going the right way - revenues, PBT and cash so very little not to like here.

Even with today's increase how this is under 50p is somewhat bizarre.

It looks like the generous dividend (c5 to 6% yield) will also have a nice tick up in early 2026. Assuming it is c50% of cash i suspect it will increase by c10% from last years 3.3 cents (it has risen each year for the last 4).

This was as per the original proposal ..

"Sidara has agreed to provide a capital injection of $450 million to Wood. Of this, $250 million will be available upon shareholders approving the Acquisition (or, if Bidco chooses to effect the Acquisition by way of a Takeover Offer, within 21 days after posting of the offer document). A further $200 million will be available upon completion of the Acquisition."

I think i remember reading there was a period of up to 21 days following the vote for the $250m to be made available.

I suspect it will be late this week/early next.

Be interesting to see the SP once this hits as any uncertainty re the deal will be 99.9% removed. 27 to 28p is my guess

Malcolm it has already been explained.

1. Uncertainty until Sidara pays the $250m - due in next week or so

2. Opportunity costs - maybe 5% up to 10% discount as deal won't get completed until sometime in 2026 - no date yet agreed

3.. MM games, predominantly due to 1

To question Sidara's commitment is a bit desperate IMHO. To put this offer together they have no doubt spent many millions in legal expenses to date. They also can't just walk away unless a specific condition of the deal is not meet. To date everything has been achieved as per the timescales.

Once the $250m funding is paid - which will make it almost a done deal - hopefully the noise will stop.

The only discount at this point should be opportunity costs - tying up money for c6months. Between 5 and 10% IMHO.

As the SP is currently trading at a 25% discount there's good money to be made in a couple of weeks.

Has the bottom now been reached?

With so much cash maybe a share buyback or a special dividend might be in order? Even a whooping 20p special divi would only cost c£3.3m and i think cash at YE should be over £14m

24p to 30p (so 6p uplift from 24p) is 25% upside BTW.

Things will calm down here and the SP will rise when Sidara pay the $250m (or made it available to draw on) which is payable within 21 days of posting the offer document.

Once this money is made available the chance of Sidara walking away will be almost zero IMHO.

Yep the share options (not for the CEO who already has over 20m shares) start at 9.32p and the bulk are at 13p so surely someone knows something as the SP is 50% below this and has been for most of 2025.

To start with 2025 YE numbers need to be hit, or be close to (£28m rev and £3m EBITDA i think). This should produce a PBT of c £900k which is much need after 2 years of big losses following cashflow issues and then restructuring. Cash should also improve, as it did in H1. As we are less than 6 weeks away from YE i am reasonably confident of this., albeit aware of the weather warning that could push some solar installation into Q1 2026.

H1 still had a couple of one off payments, and this needs to stop going forward as it is difficult to value and trust a company when so many one off events keep occurring.

It does seem that the foundations have been reset now and 2026 onwards gives the company a more solid balance sheet to go after big and longer contracts. I would expect EBITDA and PBT to start rising quickly from here.

Being a preferred supplier in GB Energy can only help IMHO

Today's H1 numbers are underwhelming. Despite the low valuation and undemanding PE the company appears to be flatlining.

The acquisitions of Emma Hardie (surely too upmarket a brand for CRL) and Brodie and Stone don't appear to have added any value.

Found this podcast from October that mentions SNX.

Justin Waite is like marmite, you either love or hate him. Previously he did have a habit of buying into a small stock, ramping it for months and then slowly selling on the quiet.

These days he has his own investment club, so there is less free stuff available. He focuses on small caps and is now more risk averse. He likes small companies that are growing, have a solid balance sheet, and are making a profit or at least reaching profitability.

Not surprisingly he likes SNX as they tick all his boxes.

https://audioboom.com/posts/8792810-markets-are-down-gold-is-up-again-is-something-broken

Not sure about a trading update for YE as the 16/10 one was so accurate, i'm not sure if there is anything else to say.

For YE (so 30/11) we were told rev would be approx £67m and PBT would be no less than £5.7m (up from £4.7m the previous year).

Unless the Rev and PBT significantly increase in the 6 weeks between the RNS and YE i'm not sure what they can report.

Potentially, they could tag it on to the next new contract announcement.

FFS, i suspect there is someone reducing their position as there are have been regular 5k sells over the last week or so.

This happens, just sit on your hands and let things settle down.

Value will rise to the top, eventually

Newboy - very fair comments.

My reading of this is that this is a unique contract that EAAS felt they couldn't say no to. It appears to be part of Great British Energy so the T&Cs are pretty much fixed by the govt and we either accept them or don't participate.

My guess is that whilst the size of the contract and the profit margin are attractive the payment terms are less so.

For example if EAAS needs to pay for say £2m of solar panels upfront and staff and admin costs are similar they will expect to make say 25% or £1m profit on this £4m investment (which appears to run for a limited period - Nov 2025 to March 2026).

However, payment terms will be restrictive e.g. no payment until work completed and then maybe 90 days payment terms .

GB Energy will going forward have large contracts in exactly the space EAAS is in so we have to be a preferred supplier. Hence the decision to take out the short term loan to ease the potential upfront cash constraints. The FD/CFO has made it clear how focussed they are on cash and that they will only bid for a contract if the terms and attractive and any upfront outlay can be recouped in a short period. In the last online investor meeting he stated that every contract tender has to be approved by him before it is submitted. I suspect an exception was made on the proviso that a short term loan could be agreed.

As the RNS states "Installations under the Programme are expected to commence in November 2025. As installations commence and scale, there will be an associated working capital demand on the Company's cash flow. The agreed customer payment terms for work conducted under the Programme are longer than the Company's usual payment term which increases the short-term working capital requirements for the Company."

https://www.gov.uk/government/news/great-british-energy-to-extend-solar-scheme-to-military-sites

Forgot to mention the 2026 note, as mentioned by Growthman - "The order book for work to be delivered in FY2026 is already at a record level which positions the Company for further profitable growth in FY2026."

This is about as positive as you can say in a RNS without including numbers.

They were clearly hoping to have some contract news to announce so they could add in a TU update to show that progress continues to be made (H2 rev is forecast to be £18m after £10m in H1, and i think this will result in c£3m EBITDA for 2025).

The 2026 comment is the cherry on the top of the cake.

As mentioned, why do this after hours? A 7am RNS would have surely been more appropriate and would have had a more positive SP impact.

This is surely a very positive RNS.

The solar contract expanded and confirmation that YE guidance is on track (c 6 weeks before YE) - the weather caveat is pretty standard. We have the work scheduled and as long as strong winds or snow don't stop people accessing roofs etc to fit the solar etc the revenues will be recognised in 2025 - else it will slip into Q1 2026.

The loan is a slight concern - high % and also mates rates warrants, however, as govt contracts the payment terms are longer than standard - so more money is paid upfront by EAAS and revenues take longer to arrive. As original loan is only for 12 months EAAS must feel it is just a short term solution to avoid a cashflow bottleneck.

Bearded not knowing a 20% reduction means you need a 25% increase to get back there - 24p to 30p is pretty poor.

As the price was 22p this morning , a 8p increase to 30p would actually be 36%.

Yes, agree it is a slight concern. The low value contract recently announced did make me think that the implied larger contracts are not close to being finalised.

Also, whilst EAAS rarely do trading updates outside H1 and YE guidance things have been quiet since the H1 numbers were announced in late July.

This is not necessarily a negative - if YE numbers are on track there is nothing to say - however, it does create some uncertainty.

My rule of thumb over the last year or so, which has worked quite well, has been to top up below 5p and make a quick (ish) 20% plus, however, i am not sure whether i want to put more into this until i know a bit more.

I'm not 100% convinced by the CEO but the new CFO looks really focused on driving value and improving margins etc.

Thoughts of others greatly appreciated!