Hydro Intl Share Discussion Threads

[rivaldo] 27/8/2009 11:00

Mas, you'd have to say that 10k was a Buy from earlier, as that would be the catalyst for the rise. If so we could be back to the good old days, where any demand at all caused a decent rise.

[masurenguy] 27/8/2009 10:40

I guess we'll have to wait and see. No trades at all on AIM so far today but a 10K Sell @95p and a 1K Buy @ 102.9p on PLUS.

[rivaldo] 27/8/2009 09:45

Evidently I spoke too soon - perhaps our seller has cleared off!

[rivaldo] 26/8/2009 14:37

Hi Mas - as no Notice of Results RNS has been published I've confirmed with the company that you're correct. Results will be out next Wednesday.

Looking at recent trades it seems to me that the new Fairfax coverage has encouraged some buying interest, but that this has mostly mopped up shares from a seller or sellers.

I'm not expecting fireworks here from the historics. But perhaps reasonable results given the downturn, plus an optimistic outlook confirming the positive AGM statement, will spark some buying given the low P/E etc etc.

[masurenguy] 23/8/2009 10:04

I wonder whether we will see any upward move in the share price this week ahead of the interims, which are due in 10 days time on Wednesday September 2nd !

[rivaldo] 23/8/2009 06:49

:o))

A major development just in - it seems we have a second broker covering HYD! This is a first....and Fairfax (for it is they) go for even higher forecasts than the house broker, with 14.1p EPS this year and 15.1p EPS next year.

Plus a 3.4p divi this year and 3.7p divi next.

Given that H1 should be OK but no more, such confidence is reassuring for the short-term - though I have no doubt that medium and long-term HYD will be a one-bagger from here at minimum.

Here's the latest forecasts:

Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
KBC Peel Hunt Ltd
21-08-09 BUY 2.90 13.97 3.40 3.13 15.05 3.70
Fairfax IS
04-08-09 BUY 3.00 14.10 3.40 3.20 15.10 3.70

[masurenguy] 19/8/2009 08:38

Well I hope so too Riv - got a few which are still underwater (excuse the pun)in my SIPP. You've put in some good time and effort here with relevant news items so lets hope we get a 'frothy' share price soon ! :o)

[rivaldo] 19/8/2009 08:16

Excellent feature in this week's Sunday Times on flooding etc which couldn't be more directly related to HYD.

It mentions in particular the need for SUDS and goes into detail about how they work - and that they can be retro-fitted into existing housing developments as well as new ones.

It also notes that a Flood and Water Management Bill has been rushed out by the Government, promising to reduce frequency and severity of flooding, compelling local authorities to draw up "management plans" for surface water - and to make developers install SUDS,

One day HYD's time will come!

[rivaldo] 16/8/2009 07:31

More news:



"Stormbloc showcased at StormCon 2009
Company to Display Solutions That Address Growing Stormwater Markets

At World's Largest Stormwater Pollution Prevention Conference Aug. 16-20 Hydro International, a leading provider of environmentally sustainable products and innovative solutions that control and treat stormwater, wastewater and combined sewer overflows, will showcase a pair of strategic solutions that meet the needs of the growing LID and LEED markets at the eighth annual StormCon conference.

StormCon, the world's largest stormwater pollution prevention conference, will be held Aug. 16-20, 2009, at the Anaheim Marriott in Anaheim, Calif. Hydro International recently introduced Stormbloc™, a below-ground, stormwater detention, infiltration and harvesting system, to the U.S. market. Stormbloc offers a wide variety of benefits for engineers, municipalities and contractors looking for better Low Impact Development (LID) stormwater management options or seeking the US Green Building Council's LEED® certification. The Reg-U-Flo Vortex Valve is a self-activating vortex flow control device that provides superior hydraulic performance over conventional flow regulators. It is a versatile device that serves a number of applications, including stormwater detention, "blue roofs", downspout disconnection schemes and flood dams and reservoirs.

Hydro will display working models of the two solutions at its StormCon booth (#603) in the exhibit hall. A chance to preview Stormbloc before the exhibition opens has been arranged. Hydro will be hosting a "Blocktail" drinks reception with both display and working Stormbloc™ models on Monday, August 17 at the Anaheim Marriott (Platinum Ballroom) from 6:00 p.m. – 8:00 p.m.,. The reception also will feature videos about Stormbloc installation and maintenance.

"Engineers' and developers' need for tools that control stormwater control in an efficient, cost-effective, environmentally sustainable way is bigger than ever in today's economic climate," said Lisa Glennon, Stormwater Products Manager for Hydro's Stormwater Business Unit. "Stormbloc meets those needs. We can't wait to show professionals at StormCon how Stormbloc works and how it complements other green solutions"

Hydro's flow-control devices are used to prevent upstream and downstream flooding at more than 17,000 installations worldwide. A flood defense scheme in Glasgow, Scotland features 5 Reg-U-Flo® Vortex Valve units for outlet controls to 3 dams and will protect 1,750 homes and businesses. These units range from 5.6 ft to 6.2 ft in outlet diameter, making them over 16 ft high at the largest ends. In contrast units for individual developments can be as small as 2 inches in outlet diameter. In addition to exhibiting at StormCon, Hydro International is sponsoring the keynote coffee service on Tuesday, Aug. 18, and Director of Innovation Robert Andoh is presenting a paper on stormwater treatment issues."

[rivaldo] 01/8/2009 07:22

Good to see the share price recovery holding up. And a bit of news:



"Best Practice Guidance for `Hard` SUDS Solution
31-Jul-2009

Surface water infiltration devices based on modular block systems are rapidly becoming standard equipment for so-called 'engineered' SUDS solutions, and Hydro International's Stormbloc® system is used across the UK in residential and highway storm/surface water control. Now Hydro has published an essential user manual and design guide for Stormbloc® which offers specifiers a complete best practice insight into the application of this system.

Despite the association of SUDS with 'natural' solutions, an engineered source control approach to SUDS such as Stormbloc® is often necessary, especially in urban environments where installation space is restricted, or where over-construction or landscaping require a load bearing solution.

The Hydro Stormbloc® Storage and Infiltration System User Manual takes the specifier through different installation practices, the design of infiltration structures, blankets and when used as a storage tank, including volume calculations and design detail considerations. Features of the Stormbloc® system are considered in detail, to demonstrate their benefits in applications, including the patented inspection / access tunnel through each system and the unique Stormbloc® Inspect modular access and inlet chamber."

[rivaldo] 30/7/2009 12:15

Interesting article about pollution and its effect on drinking water in China - with a side mention for similar problems in the USA and the spending promised to combat it:

[rivaldo] 30/7/2009 11:12

Yep. There seems to be a little buying interest at the moment.

[barbudo viejo] 27/7/2009 15:53

Nice to see a modest rise in share price ..

[rhuvaal] 23/7/2009 20:47

Thanks Rivaldo, during the week I've made a couple of nibbles - bit of a wide spread, but value is evident.. putting away for better times, no hurry etc

[masurenguy] 23/7/2009 15:27

Riv - completely agree. Amazed that the share price is still languishing here !

[rivaldo] 23/7/2009 14:22

Today's proposals from OfWat for the 5 year 2010-2015 spending programme include plenty of possibilities for HYD:



"Flooding in 2007 highlighted the risk extreme weather conditions pose to water supplies. The proposed investment will see this risk reduced for around ten million people.

More than £4 billion will be invested in maintaining and improving drinking water quality, as well as protecting the environment. This will help deliver cleaner wetlands, rivers and beaches."

"Addressing sewer flooding problems for more than 5,600 properties.

Improve 130 water treatment works and 520 sewage treatment works to maintain and improve the environment and drinking water quality.

Maintain or improve more than 2,700km of rivers to meet EU environmental standards.

Improve water quality in more than 55 wetlands and bathing waters."

Topgallant, the reason that HYD's shares are where they are is nowt to do with Eutek - it's because of the AGM statement and the short-term dip in the rest of the business talked about therein. If the year end results come in in line with expectations then the current price will be seen to be extremely cheap on a P/E of 6.

The Eutek acquisition was a stroke of genius. Buying it at such a low P/E, with the consequent benefit to profits last year, meant that HYD were able to reduce the impact of the downturn on its other businesses at exactly the right time. And in the AGM statement Eutek got a favourable mention in terms of order intake for 2009.

[topgallant] 22/7/2009 22:46

A stroke of genius not only dismissed but discounted by investors, they must all be wrong then, I hadn't thought of that possibility. TG

[rivaldo] 22/7/2009 20:50

Topgallant, you're mixing up two completely different concepts. Intangibles are completely irrelevant to why HYD bought Eutek, or its PBT, and are never included in PBT as you suggest, other than to be written down. HYD certainly didn't buy Eutek for its assets, which is why there's goodwill. It was bought for its leading position within the US wastewater industry.

The P/E of 3.4 at which Eutek has been bought, as I outlined above, is the reason why the acquisition of Eutek to date and looking forward appears to be an out and out stroke of genius by HYD's management.

[topgallant] 21/7/2009 17:32

Thanks Rivaldo of course I read the annual report. The initial cash had expenses added to it. You are using a sum equivalent to only the cash outflow figure and how much of the pbt was intangibles. At 5.4M for 5.4M of intangibles the will had better be very good! Rgds TG

[rivaldo] 20/7/2009 08:53

Topgallant, with respect I rather think it's the HYD directors who are grinning from ear to ear! Eutek's 2008 post-tax contribution post-acquisition last year indicates HYD bought them on a P/E of just 3.4!

You need to read Note 25 of the 2008 Annual Report. You will see that the initial consideration was £4m, and against this Eutek contributed in just eight months post-acquisition £1.121m of pre-tax profit.

Annualised and taxed at 30%, that represents £1.18m of post-tax profit - a P/E of 3.4 :o))



"Eutek Systems, Inc. contributed £4,908,201 revenue and £1,121,306 to the Group's profit before tax for the period between the date of acquisition and the balance sheet date."

"On 5 May 2008, the Group acquired 100 per cent of the issued share capital of Eutek Systems, Inc. for an initial cash consideration of £4.0 million (plus associated costs)."

HYD's purchase of Eutek was perfectly timed to maximise its impact on HYD's prospects in the upcoming downturn and minimise its cost at the exact point when sterling was at its strongest against the dollar.

[ed the business] 19/7/2009 20:41

;-0 watching

[topgallant] 19/7/2009 20:35

Hi Rivaldo, In the Eutek acquisition Hydro appear to have paid approx 5.4M for 5.4M of intangible assets 772K of real assets and 877K of liabilities. I cant help feeling the Eutek owners are still grinning. Does the acquisition still look as good to you now as it did at the time? Thanks for any comment I am a small holder

[rivaldo] 18/7/2009 07:48

Interesting article on T.M.F on the attractions of water-related stocks as investments. HYD are underneath the radar as usual and are not mentioned! Despite HYD having:

- a P/E of just 6.5 based on 13.7p EPS
- £1m net cash
- an excellent PSR given a £12.8m m/cap against £30m of annual sales



"Water is more precious than oil and it is time you started investing in it.

Global climate change is forcing us in the developed world to realise water is a finite resource that can no longer been taken for granted. Making water accessible and drinkable will offer canny investors the opportunity to make money.

It is estimated that approximately 97% of the world's water is seawater, 2.5% is frozen (locked up in polar ice and glaciers). So we rely on the remaining 0.5% for all fresh water needs.

With the world's population growing, demand for water will only increase. To make matters worse, climate change makes rainfall less predictable, more erratic and prone to higher wastage e.g. storms and floods.

By 2025, the UN Intergovernmental Panel on Climate Change has estimated 60% of the world's population will be living under conditions of "water stress", facing significant water shortages.

Without trying to sound like the 21st Century version of Goldfinger, it therefore doesn't take a genius to work out that whoever controls this resource is going to be extremely powerful and rich.

As far as I can see the opportunities lie in various areas, both in terms of treating water to make it drinkable, conserving and re-using it.

etc"

[rivaldo] 15/7/2009 13:38

Hi what-man! Agreed. Any interest or good news at all and the share price will whizz up (we all know about the volatility here).

News - HYD seem to have a very good relationship with Hyder Consulting (confusing or what!):



"It`s `Hard SUDS` for Cumbrian Roundabout
14-Jul-2009

INNOVATIVE THINKING helped to find a sustainable drainage solution to a major Cumbrian road project. A space-saving solution to controlling surface water in a high rainfall area has been provided by situating a Hydro Stormbloc® storage attenuation tank in the centre of a new roundabout.

The 'hard' SUDS option developed by Hyder Consulting reduced environmental impact and flood risk at the site, part of the Highway Agency's A595 Parton to Lillyhall improvement plan. By contrast, the alternative to provide a suitably-sized stormwater wetland at the location was ruled out due to lack of available land.

"We had considered a number of options for the stormwater control. Wetlands used elsewhere on the route would occupy too much room in this location, as would storage pipes. As the land in the middle of the roundabout was available, we considered a 2 m deep pond there, but the possibility that a vehicle might end up in it was not acceptable," explains Alan Cope Senior Drainage Engineer at Hyder Consulting.

The new 35 metre diameter roundabout is located at the junction of the A595 and 596, and provides access to the developing Lillyhall Industrial Estate. By combining the installation of the 271m3 Stormbloc® storage tank with the roundabout, the project was able to provide the surface water control required for a 1 in 100 year event, within the Highway Agency's safety parameters, without extra land requirement.

"Hydro's Stormbloc® was selected as it is a loadbearing modular block system which can be installed in a very shallow void, so is very cost effective," continues Alan . "It can easily be landscaped over, without additional loadbearing construction, and is simple to handle on site.
"Installation of a tank might have had maintenance problems with silting but, because Hydro's Stormbloc® has extensive inspection and jetting channels, the Highways Agency were happy to accept it; Stormbloc®'s load bearing capability would also be much safer in case of vehicle intrusion."

The Stormbloc® installation includes two Stormbloc® Inspect access chambers, allowing for periodic inspection of the storage, and is combined with a spillage intercept trap; discharge is via a Hydro-Brake® flow control device at 5 litres/second into the existing drainage network, the limit for a 1 in 100 year event. The Stormbloc® tank is wrapped in geotextile over carefully selected aggregates and an impervious geomembrane completes the tank.

"It's an excellent demonstration of how so-called 'hard' SUDS solutions work alongside 'soft' solutions," adds Alan Cope. "Elsewhere, along the Parton to Lillyhall improvement scheme on the A595, there are three stormwater attenuation ponds/ wetlands. Each solution is valid in its context."

Hydro's Stormbloc® is a modular system which provides a 95% void ratio, and requires only shallow excavation; its load bearing characteristics allow landscaping or vehicle loading above it. In addition, Stormbloc® features access for CCTV inspection and water jetting through patented tunnels, and offers low maintenance requirements."

[what is a login ?] 10/7/2009 11:06

I have great belief in the company's technical prowess and problem solving ability.( I had a quick look at the website when I bought in two or three years ago) Every time I pass through Ely I think of HYD. I am particularly impressed by their ability to clean up rivers and the like with their filters. To bring "shareholder value" HYD maybe need to be more commercially oriented. Aggressively, possibly crassly, pushing products for swimming pools and so forth that no fully paid up member of the consumer society can do without. But that would destroy the nature of what I perceive to be a green, friendly and brainy company. These are just a few musings. I am unable to do proper research, unlike Rivaldo (hi there). My £30 divi clicked into my account a few days ago. So you can calculate how many shares I have left. Not many :( , but I'm certainly holding on.