||EPS - Basic
||Market Cap (m)
|gbb483: With the vote due on Thursday, today and tomorrow are the last days you can buy on and have voting stock to use. The flip side is that if the vote goes for a buyout, then these 2 days are your last chance to sell for more than the buyout will give you (except you will also have to cover dealing costs). And if the vote goes against a buyout, the share price will probably sink back towards where it was pre-buyout offer, so you can buy back in. I would take this opportunity to off-load.|
|sharw: If 22.6% of shares are voted against and everyone else votes for they will need 90.4% of shares to vote to get it through. Given shares in nominee a/cs that is highly unlikely (in the scheme meeting for the takeover of CWC held on 28/4 just under 70% of the total number of shares were voted). Stand by for some behind the scenes negotiations as anticipated by the share price rise.|
|rivaldo: SMS' divi is de minimis at less than 1%.
SMS have £80m net debt against a £344m m/cap. EAS have £69m net debt against a £137m m/cap, but have a gas meter portfolio with a £93m book value and have 62% recurring revenues (similar to SMS' 64%).
SMS do appear to be winning more recent contracts.
But overall the differences aren't enough to justify such a large discrepancy in valuation.
The run-up into the trading update next month and then into the results should serve to push EAS' share price and make some of that discrepancy disappear.|
|cisk: Here you go Riv!
BTW if you have chrome, once you've reached your limit switch to incognito mode and then can you continue over the limit ;-)
Questor says BUY
ENERGY Assets [LON:EAS], which installs smart electricity and gas meters for industry, enjoyed a share price jump of almost 10pc yesterday as first-half results reassured investors.
The company said that the core meter asset management division, which generates around half of group profits and installs meters, had a strong first half when it increased group revenue by 22pc to £20.6m. By the end of September, the number of owned or managed meters rose from 365,000 at the end of March to 404,000.
The market expectation is for full-year pre-tax profits to reach £10.6m, up from £9.3m last year. The company should generate 30p in earnings per share for the 12 months.
Energy Assets buys smart meters, installs them and charges an annual fee for their use. The average meter costs £850, and generates £135 a year in rental fees for the company. The upfront capital cost of the meters is funded by debt that is paid off over an eight-year period, but the meter can last at least 20 years.
The rental fees Energy Assets earns are guaranteed by blue-chip names such as npower, British Gas and Gazprom; the fees also rise with the Retail Prices Index for up to 15 years. The Government requires all industrial customers to have smart meters installed by 2020, and this should support steady growth until then. The company’s Siteworks, which installs the meters, reported that revenue increased by a third during the first six months.
Once the company’s debts are reduced it can start paying dividends. The shares are down about 20pc from record highs of 621p reached in June. That said, Questor likes the growth profile and income potential despite the risks inherent in investing in such a small company at an early stage.
The shares are trading on a PE ratio of 15, but due to the growth in revenue and profits that falls to 13 times next year.
We like the potential for steady cash generation and the shares remain a buy for the long term.|
|nurdin: Excellent interims.Glad I held on through the somewhat surprising turmoil in the share price.|
|rivaldo: Results out, and they look excellent at first glance. 14p EPS in H1 puts EAS well in line with almost 30p EPS expectations this year.
H2 "has started well".
The overall chart uptrend remains upwards, and the recent decline is almost certainly due merely to a bit of profit-taking in a relatively illiquid stock.
Given these high levels of growth and recurring income the share price could easily be back at 600p soon imo.|
|ascov: The business model is to buy kit then rent it. The need for cash is dependent upon rate of growth. The value is in forward contracted income, what is clever is that they have income contracted forward for years to come. So unless their customers go bust this is a money making machine. They borrow £1 which gives them £10 of contracted income. If they sold the business tomorrow it would be valued on the £10 not the £1. If they need to raise money and the share price falls...buy.|
|maiken: anyone know of any reason for the weakness in the share price ?|
|rivaldo: I bought in here in May/June'14 (see my post 98). No doubt my posts have single-handedly almost doubled the share price since then :o)) As if a single post here makes a difference to a £130m m/cap company....
Compare and contrast my completely factual post 361 with the garbage in post 362.
It seems gbb483 would like to be a contender for everyone's "posters to be ignored" list. He's certainly going the right way about it.|
|rivaldo: Good coverage this morning - I hadn't seen that Macquarie had a 645p target here....
"Ryan and Buckle invest with EASE
Citywire AAA-rated veteran ethical investor Audrey Ryan and AA-rated Iain Buckle have upped their exposure to meter management business Energy Assets Group (EASE) following a slide in its share price.
The duo lifted their exposure to the business to 4.2% worth £4.9 million at a share price of 432p.
Shares in the company have recovered most of their ground since a sell-off earlier in the year. Numis rates the company a buy with a price target of 530p while Macquarie Research rates it outperform with a price target of 645p.
Sentiment regarding energy efficiency stocks has dropped sharply alongside energy prices since last summer.
The shares are held in the team’s Kames Ethical Cautious Managed fund, with a small number managed by the company’s Kames UK Smaller Companies fund."|
Energy Assets share price data is direct from the London Stock Exchange