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I still like this company and what it has to offer. It's a relief that we now have an answer to the funding gap. Dilution is always a slightly bitter medicine but it certainly beats going into administration. I like the investment interest from Korea. It shows the company has worldwide appeal. And if you're going for a fund raise, you'd better make it a big one. The initial market reaction tends to always be a bit severe so better to get it over with in one hit. It'll be interesting to see how this swings in the morning. My gut says an immediate fall on open but good strength as the day develops as both the news and the scale of the opportunity sink in.
Trotsky I agree with your overview and your company sentiment. The only two caveats I'd throw in are that their statement in the last half year report about covering the dividend in the September quarter was a little disingenuous as it was based on the 1.5p dividend rather than the other quarters 2p. Recalculating for 2p it was only about 0.84 covered. And secondly their revenue is still using a high portion of acrual (for reasons you already covered) and relies heavily on them getting their acrual figures right. If we're unlucky and they've screwed those up in some way the accounts would likely have to be restated which is upsetting for stock prices. Either way as long as their revenue trend is still on the up then those two points become mostly irrelevant.
We're going to have to rely on some very bullish trading statements for things to settle. Unless the non-UK regions are absolutely stellar (which they could be) then the financial results ending in March could need a bit of polishing. Even accounting for GSF's better geographical spread we know the UK figures on it are going to be pretty rubbish thanks to National Grid's poor use of batteries over the winter period. Personally I expect GSF are probably doing ok, but it's going to be hard to see that from backward looking figures. I think the picture will look far better by the half year results to end Sep 24, but we won't see those until December hence the need for repeated bullish trading updates in the interim.
Reported in FT. Shared by IES on X.
https://archive.fo/O4LDv
Forgive me, my cautiousness comes from watching money being spent on things which are not strictly necessary. I've just lost another two investments this week in pre-profitable companies. They simply ran out of funds and felt the market was not in a position to stump up some more. Usual story, sold to a consortium or sole backer, took all the IP for a pittance and with the product all ready to scale up, and all the early investors tossed aside with nothing. I can afford the losses but I'd rather be a part of their future. Companies running out of money should not be underestimated.
I can understand why Dennis would want to try and break away from anything that looks like the ITM before he feels he fixed it. But a rebrand is seldom seen as a mark of strength. It suggests the need to relaunch, in a slightly desperate bid to be visible again. In addition to that I'm not sure we have money to waste on stuff that isn't likely to move the needle.
I agree noggers. Something fishy went on yesterday. Hopefully some 'insiders' got burned by selling heavily on news that results are delayed. Financial delays are normally disasters so it was probably a reasonable bet. As long as today's statement holds and it's not really bad news, in fact makes 2023 slightly better then the share price will bounce straight back up. Also taking into account the continued positivity regarding Doosan.
I'm a little disappointed that this news didn't give us a 40% rise today, but I guess they've still got cash problems that they need to demonstrate get resolved one way or another.
Ultimately it's hard to scale up production without cash, so today's news is good as it's an asset-light option.
New partner announcements soon would be another welcome boost especially if they come with an upfront cash injection. Alternatively I think a simple bank loan model at a reasonable rate would satisfy the manufacturing requirements.
Still my favourite stock holding in my portfolio. Let's go.
Good article from Timera explaining how the recent changes should be starting to help BESS.
https://timera-energy.com/our-latest-views-on-bess-value-capture-in-the-bm/
Seems that the ESO is taking BESS seriously and is trying to resolve some of the recent issues. Good article from Timera.
https://timera-energy.com/our-latest-views-on-bess-value-capture-in-the-bm/
They mentioned a couple of years ago that they would now only produce an rns for materially significant news. So small orders and low revenue news won't be rns, but at least they are sharing on X which is good. Today's FEED announcement is positive but it's no guarantee that either the project gets FID or that ITM would be the ultimate supplier. If both of those outcomes end up happening then we'd here about that in an RNS for sure.
Perhaps if those in charge actually put a stop to the spending waste then people's hard earned cash would go further. The wind energy curtailment payments are literally paying out bill-payers money to generate no energy - what a waste. That same money would have already paid for enough electrolysers to replace 10% of UK grey hydrogen with green from the excess wind. It may be hard to quantify exactly how that makes things more affordable for hard-working people, but I can't help but feel getting something for your money rather than nothing just has to be better.
This Labour news has been on the media radar for several days already. I think that's why loads of my green funds have been in steep decline for a few days. There may be a modest further drop as a result of this formal confirmation, but my guess is that it's mostly priced in by now. It's certainly not going to help sentiment. It's all very disappointing, I was convinced that green would be a good investment strategy for the foreseeable future, but the UK at least just doesn't seem to know what it wants.
This is the sort of newsflow we're gonna need.
https://twitter.com/ITMPowerPlc/status/1752983310274314341?t=7o9QWZJFJ3BFFDRSAbr7iA&s=19
I trust this is a sale and not a freebie upgrade.
Don't underestimate the bravery of the big shorters. You'll be surprised how they will see this as another opportunity to win all the way back down into the 40's again. I think we would require a stream of positive news flow to produce a continued lift in share price. The shorters have lack of orders on their side.
Yes, very likely. That's certainly the intended location for the 100MW electrolyser.
https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html#:~:text=Germany%20%2D%20REFYHNE%3A%20Rhineland,later%20in%202023.
The company has certainly become more focussed and sounds more competent as a result. The future could be very good, but it still relies heavily on regulators/governments providing a level playing field so that others can commit to large scale projects that ITM will benefit from. Fingers crossed that plays out in ITMs favour.