Energy Tech. Share Discussion Threads

[sailing john] 18/12/2014 10:16

Added earlier

Hopefully increased revenue at very little cost

SJ

[reba] 18/12/2014 08:34

Things looking good. Big market potential should do well

[battlebus2] 18/12/2014 07:21

This should relieve some of your pain Shanklin....

NON-BINDING HEADS OF TERMS WITH UNICO INC. FOR

NORTH AMERICA FRANCHISE AGREEMENT

AND

UK MAIN SALES REPRESENTATIVE AGREEMENT

As part of its overseas expansion plans, the Board of Energy Technique plc is pleased to announce that it has reached non-binding heads of terms with Unico Inc. of St Louis, Missouri, USA ("Unico"), to become its first franchisee of Diffusion's fan coils for the North American, Caribbean basin, Bermuda and Canadian markets, on an exclusive basis.

Under the arrangements contemplated, Unico will manufacture Diffusion's fan coils under license from its facility in St Louis, Missouri, USA and it will be responsible for all sales and marketing activities in its franchise markets, delivery of product to end customers and credit management. Diffusion will provide technical input, design and manufacturing instructions and it will receive franchise income based on a percentage of Unico's sales to its end customers. Both parties are working towards concluding a legally binding franchise agreement early in 2015.

Concurrently, non-binding heads of terms have also been reached with Unico for Diffusion to be Unico's main sales representatives in the UK for its small duct high velocity heating and cooling systems. Unico already supplies these systems into the UK and by using Diffusion's established routes to market in the UK, growth in sales of Unico systems are expected to be achieved. Under the arrangements contemplated, Diffusion will market Unico's products in the UK and Republic of Ireland, for installation by third party contractors who will also be responsible for credit management. Diffusion will obtain sales commissions based on the selling value of Unico products installed by third party contractors. Both parties are working towards concluding a legally binding main sales representative agreement early in 2015, at the same time as the franchise agreement with Unico.

[shanklin] 21/11/2014 08:35

Well this is a pain. Anything fundamental going on or is it just discounted currently?

[smudgeroo] 10/11/2014 13:44

Very positive report all in all and ahead of management's expectations. Commercial heating sales fallen off a little but Diffusion clearly growing well. A nice doubling of the dividend as well. Well done!

[smudgeroo] 10/11/2014 13:38

Liquidity, or lack of I suspect.

[johnthespacer] 10/11/2014 13:18

Why is the spread so big here!

[wjccghcc] 10/11/2014 10:00

It's just very illiquid. The full year should be excellent, and once the international franchising kicks in, they'll hopefully look to sell the company.

[shanklin] 10/11/2014 09:48

Blimey hadn't realised these were such dire results.

[shanklin] 10/11/2014 08:25

Hadn't looked at these before. Have just bought a few on what seems a ridiculous spread. Hopefully not too bad a decision.

[battlebus2] 10/11/2014 07:13

Yes yet another great set of results.

[woodie3] 10/11/2014 07:10

100% rise in divi announced today

[eezymunny] 13/10/2014 11:10

Had a few of these for EEZY2 portfolio, FWIW.

[smudgeroo] 11/9/2014 13:44

I also note that there are 333,050 share options outstanding, granted 4th December 2012.

"Energy Technique (AIM: ETQ) announces that on 4 December 2012 a total of 333,050 options ("Options") over the Company's ordinary shares ("Ordinary Shares") were granted to certain directors and employees, pursuant to the Company's EMI share option scheme. The Options were granted at nil-consideration with an exercise price of 43.5 pence per Ordinary Share and are normally exercisable 2 years from the date of grant.

Given these are now worth almost 10 times the exercise price it would be fairly safe to say that the number of shares in issue is likely to increase by 10% in the not so distant future.

[smudgeroo] 11/9/2014 13:37

From the RNS dated 12th July 2012:

"The result of the Capital Reorganisation will be to reduce the number of Ordinary Shares in issue from 33,305,160 Existing Ordinary Shares to 3,330,516 New Ordinary Shares and the number of shareholders from approximately 1,840 to approximately 1,040.

[sharesure4] 11/9/2014 13:25

No problem. I had thought that the consolidation was even bigger - better check my holding; might get a nice surprise! Held these so long that I thought they would end up as a CGT loss to mitigate gains elsewhere.

[smudgeroo] 11/9/2014 13:07

Sharesure, I stand corrected.

Reading back now I see the consolidation was on a basis of 1 share for every 10?

So assuming Walter Goldsmith hasn't sold any of his share he should own 395,575 shares which would equate to a gain of £400k for every £1 movement in share price.

[sharesure4] 11/9/2014 11:49

Smudgeroo, there has been the not so small matter of a hefty consolidation since then so his holding of new shares would be a great deal less.

[smudgeroo] 11/9/2014 11:02

Does Walter Goldsmith still hold? I presume he does.

Looking at the research notes I have he bought 3,955,757 shares between 2007-2010 at an average price of £0.025. Yes 2.5 pence!

That £100k investment is now worth a cool £16.6m at the current bid price of 420p. Every £1 increase in the share price nets him £4m.

Imagine if it went back to the highs seen in 2002!

EDIT. Please see post #22 below for an update.

[battlebus2] 11/9/2014 10:31

Looks like news maybe in the offing....

The Board's current strategy is to further grow Diffusion's sales and profitability, where franchising and trench heaters have been identified as growth drivers. At a share price of 197.5 pence per share, the Company's market capitalisation of GBP4.72 million represents a low multiple of 5.2 times Diffusion's operating profit for the year ended 31 March 2014, providing further opportunities for enhancing shareholder value. Once the Board has fully achieved its strategic objective, then it will seek a strategic partnership so as to fully realise shareholder value. In the meantime, the Board will not be distracted from this organic growth strategy by considering acquisitions.

[sharesure4] 11/9/2014 10:26

And Leigh Stimson has done well too. Watch for improved figures and higher dividend in coming weeks in my view then talks with a trade buyer.

[tomboyb] 11/9/2014 10:12

£4 bid - and 2v1

Peter Gyllenhammar has done pretty well here -

[battlebus2] 11/9/2014 08:10

£4 to buy :))