Hydro Intl Share Discussion Threads

[rivaldo] 05/11/2010 12:44

:o)) Hi luminoso, 'fraid not - HYD remains on the watchlist though.

Overall HYD remains reasonably valued at the moment imo given consensus 9.8p EPS this year and 11.1p EPS next year. The new contracts are brilliant long-term news, but I have concerns that HYD will warn they can't meet forecasts this year given the economic climate, particularly given that HYD only made 3.2p EPS in H1.

HYD is a brilliant little company long-term, but I can still see downside on current year forecasts. I'm sure they'll be taken over in the end, but I can't buy a share purely on takeover hopes, or on relatively limited upside.

The other negative is Tim Lamb's wife, who keeps selling into any good news and still has loads to offload.

I'm glad for holders it's recovered a bit though - I like the company, the management etc. If I sell my GKP shares next year at some ridiculous price HYD would be an early port of call (and I'd like to plug GNG at this point as an absurdly undervalued share!).

[luminoso] 05/11/2010 11:38

Back in yet, Rivaldo ?

[dozey1] 02/11/2010 11:59

Absolutely agree that this contract: will put HYD on the radar of many more investors. Its value is more than the whole turnover for 2003/04 but of course income from it will be spread over the five years from 2011. Good news indeed. Today's price is up 16% at 11.45am having been higher earlier on. Still good value in my view.

My understanding is that HYD subcontracts manufacturing of its products. Does anyone know who this (these) subcontractor is (are)? Clearly they will also benefit.
Good luck.

[garth] 02/11/2010 11:49

Well - have been adding for a few weeks but had hoped to get some more yet under £1. Great news - well done Hydro!

G.

[what is a login ?] 02/11/2010 07:52

This big project will ensure divi payments until 2015 and increase HYD's visibility. I think there can only be more good news to come. Not bad going in an economic downturn.

[skirbell] 02/11/2010 07:27

Wow, great contract win for Hydro. This company has some great products and deserves to do well. Let's hope that this is the first of many and the company can start pulling it's share price back to its historical highs.

[what is a login ?] 27/10/2010 08:13

From yesterday's UK analyst:
Arden Partners initiated coverage on water treatment firm Hydro International (HYD) with a "buy" rating and 110p target price. The broker believes few companies offer such strong structural growth drivers at such an attractive rating. Last year, despite enduring the most difficult trading environment it has ever faced, the company's sales fell by less than 10% and its cash flow improved. It has emerged in good shape with strong finances and a more aggressive strategy, aimed at maximising its sales potential and delivering faster growth. Hydro shares ended the day unchanged on 93.5p.

[luminoso] 25/5/2010 10:04

Great news released into an awful market ! Still pleasing, though.

[rivaldo] 20/5/2010 14:11

As most here will know I sold some time ago, due to the very issues which have led to today's somewhat downbeat trading statement, i.e the AMP5 hiatus etc etc. H1 profits will be lower than last year's, and although HYD confidently state that the year as a whole should trade in line with expectations, I feel that the number of negatives outlined in the update make H2's performance somewhat doubtful to say the least.

And that's without the possibility of the macro economy failing to recover or indeed worsening.

I do like HYD as a company, especially for the long-term, but would be surprised if the share price goes anywhere for the next six months except down.

Having said that, HYD's share price strength has been very impressive, if rather bemusing to me. In other words, don't listen to a word I say!

[woodsman2004] 14/4/2010 10:42

I remain optimistic long term by any glance at the share price chart will show that unexplained rises are usually quickly followed by corresponding unexplained falls!!

[david lawrie] 13/4/2010 21:47

Good rally after the 2009 annual report published on April 7th, but only sell trades noted since then while the price has risen over 10%, so I don't try and understand that. Quite a few positve statements from the directors who from my perspective generally understate.

[neddy1] 02/4/2010 16:46

Just being nosey !!
Masurenguy,how did you come by your name ?

[masurenguy] 02/4/2010 16:33

Investors tap into the potential of water
Charlotte Banks: 02 Apr 2010

Water utilities are not, however, the only way for investors to gain access to the sector.....other services such as technology, which looks at how water is monitored, distributed and purified as well as the testing of water is something that Simon Gottelier, portfolio manager on the Impax Environmental Leaders fund, is also keen on. Mr Gottelier said there has been a boom in merger and acquisition activity in this area recently and points to French Company Veolia Environnement, which is included in the Impax fund's top 10 holdings. "Veolia Environnement is in the middle of restructuring and has started to perform a lot better this year than it has historically, given all the management upheaval. This month the stock is up 9pc and year to date it is up 12pc," he said. Mr Gottelier also points to Perkin Elmer, a US water-quality testing company, whose stock is up 17pc year to date.

The Impax Environmental Leaders fund focuses on three areas – energy, waste and water – and Mr Gottelier said water is the most interesting part of the portfolio due to opportunities in Asia and China. "We are seeing a continued mass of urbanisation in these regions. The way in which basic services such as waste treatment and the provision of water are delivered will become increasingly important so we see this as a huge driver of opportunity."

Philippe Rohner, who works on the Water fund team at Pictet Asset Management, said the company views water as a service industry, but believes there is an ancillary aspect as well, such as engineering and consulting companies. "We also look at system integrators who put equipment together to solve problems, be it reducing health issues, making water safe and creating fresh water, these go beyond utilities and we find this deeply attractive.''

Mr Gottelier believes the outlook for the water sector remains positive. "It's inescapable that climate change tops the political agenda. People are recognising that we cannot carry on the way we are, with flooding on the one hand and drought on the other. I think people are realising that water is a valuable resource and that the way we use and reuse it is becoming increasingly important," he said.

[alter ego] 25/3/2010 08:44

good find smarkmmm

[smarkmmm] 25/3/2010 08:28

Taken from the "Investor Open House - Business Briefing" given yesterday:

"Big Players have entered the market – GE, Siemens and ITT - are not focused on the niche segments in which Hydro operates"

Does Hydro therefore represent a takeover target to one of those 3?

[smarkmmm] 25/3/2010 08:24

World's largest vortex control unit for Glasgow

[davebowler] 24/3/2010 10:32

On 24 March 2010 Hydro International, the leaders in the management of stormwater and wastewater will be hosting a visit for investors and analysts at its head office in Clevedon, near Bristol. The purpose of the visit is to provide further background to the Company's products and markets. No new information will be provided on the day in relation to current trading or outlook. Copies of the presentation material will be made available on the Hydro International corporate website at the conclusion of the visit.





For further information please contact:



Hydro International plc

Tony Hollox Tel: [phone]

Chief Financial Officer

[charlie] 16/3/2010 11:31

Saving U.S. Water and Sewer Systems Would Be Costly
By CHARLES DUHIGG
Published: March 14, 2010



...In Washington alone there is a pipe break every day, on average, and this weekend's intense rains overwhelmed the city's system, causing untreated sewage to flow into the Potomac and Anacostia Rivers.

State and federal studies indicate that thousands of water and sewer systems may be too old to function properly....

...People pay more for their cellphones and cable television than for water," said Mr. Hawkins...

..."You can go a day without a phone or TV," he added. "You can't go a day without water."

[masurenguy] 02/3/2010 09:53

Thanks - I didn't spot the US loans !

[smarkmmm] 02/3/2010 09:45

Debt 3.6m therefore net cash c.1.48m

see Note 6 in the accounts:

6. Going concern
Whilst the Group has considerable financial resources, the current economic conditions create uncertainty particularly over (a) the level of demand for the Group's products; (b) the exchange rate between sterling and the Euro and the consequent impact on the cost of the Group's imports of stormwater storage products sold through its UK Stormwater business; and (c) the exchange rate between sterling and the US dollar and the consequence for the value of external borrowings denominated in that currency and the associated cost of servicing that debt.

Group borrowing facilities comprise a $3.1m US dollar term loan expiring in May 2013, a $2.7m US dollar term advance (secured on the Group's freehold properties) expiring in May 2018 and a £1.8m overdraft facility which is repayable on demand and subject to review in May 2010. As at 31 December 2009 the overdraft facility was not in use and the Group maintained £5.0m of cash balances.

Borrowing facilities are subject to financial covenants which specify a maximum ratio of net debt to EBITDA of 2.0 times, a minimum interest cover of 3.0 times and a minimum ratio of cash flow to debt service of 1.25. In addition the term advance is subject to a further covenant under which the amount borrowed shall not exceed 80% of the value of the properties against which the advance is secured.

The Group has remained in compliance with these covenants during 2009 other than the minimum ratio of cash flow to debt service. As such, the full balance outstanding on both the bank loan and term advance are shown in the balance sheet as at 31 December 2009 as current liabilities. Since the year end the Group's bank has waived the measurement of compliance with this covenant at 31 December 2009. The bank has also waived compliance with this covenant at 30 June 2010 provided the cash flow to debt service ratio does not fall below 0.82. The directors have considered the measurement of the covenant that will be required at 30 June 2010 and at 31 December 2010, and consider that the group is expected to generate sufficient cashflow during 2010 to ensure compliance with this covenant.

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current financial facilities for at least the next 12 months.

After making enquiries, the directors have concluded that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

[masurenguy] 02/3/2010 09:39

Sales down 10% and profitability down 40% due to declines in the Stormwater division which was impacted by the residential marlet. Wastewater sales continue to grow.

Strong balance sheet with no debt and £5m in cash. At a share price of 82p the market cap is just £11.6m ! Deduct cash and the EV is only £6.6m or 46p a share for a company that has just produced an eps of 8p in a bad year and is maintaining a yield of 3.7% with a dividend of 3p. Could become an acquisition target at this low valuation !

[barbudo viejo] 08/1/2010 11:39

I concur entirely with your wise words. I always salt my hyperbole with a dose of wishful thinking. You can only hope that at some point in the degrading ecological-picture-continuum, events will precipitate action. Hopefully before it's too late (by which I don't necessarily mean 'for my investment in HYD', hoho)

[luminoso] 08/1/2010 11:33

BV

Would have to agree with you but never underestimate the ability of the human race to bury their heads in the sand about such threats. The fact that the share price is still languishing is due to public bodies here and in US not wanting to spend shrinking budgets on such preventative measures. They have more immediate demands to meet. Short sighted but human nature. We are going to have to be patient, methinks.

[barbudo viejo] 02/12/2009 09:10

The corollary of every flood headline is the screaming necessity for HYD products. It's like having invented the rat-trap just before the great plague. Whole swathes of the country (and the world) will become uninsurable unless they take active measures to control future flood risk. It's a yawning market. HYD would have to shoot their own feet not to make money in it, you would think. However, this is just my opinion.