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Real-Time news about Kedco (London Stock Exchange): 0 recent articles
|stockologist: sometimes worth waiting with just a small amount in some of these with the potential to go big, worked well with CNEL even though I never believed their story they pulled it out the bag
KED I believe their story and they have big partners and big plans and Management own decent chunk as well
I can get to multiples of current share price on earnings and asset valuation here as long as they deliver and they said Q4 Financial Close so I expect it to happen next few weeks|
|allrise: That's disappointing. I don't really understand why you would think that these couple of weeks would be good then (one week later, still no real improvement). I don't see anything material that will provide the much-needed uplift. I do agree with your opinion about the share price changes based on such small volumes and values of trades. But if there is not a lot of interest (yet) in the stock, that's what it's up against. Some substantial real progress (financial close and beginning of the build on the Enfield project + full production in Newry) is needed to get this one moving. Everything else is just bluster.|
|4nca: I've been a long term holder for 3 years. Trouble with these guys historically is that the small cap institutional investing community havent taken them seriously. The perception was that they were ruddy faced Paddy's and, having been in a couple of meetings with them, they did not present well. Stripping out FBD's position, the company now has new and motivated shareholders in the form of Steve Dalton and Tim O'Keeffe - a couple of smart ex RBS bankers. These were the guys who put together the Ulster Bank debt faility. Always a good sign when a company's Banker leaves the bank to join their client.
There is a long way to go to capitalise on the NPV of some of their pipeline schemes. Other small caps have made this transition (Helius Energy HEGY) and, the step up in the current Kedco share price from 1p to 5p is probably not too far away. Keep in mind that the acquisition of Dalton and O'Keeffes's Reforce Energy was completed at 0.8 pence per share and theat a bunch of warrants were issued to them and management at 1.6 pence.
I think we'll see 2p fairly swiftly - meaning a market cap of £20m. This market cap in itself puts them on the radar of small cap funds which, in turn may make the trip from 2p to 5p quicker than one would expect.
Put it like this, until they completed the debt for equity swap Kedco was in serious danger of going bust. The only reason they did'nt was that FBD were in the background and were prepared to drip feed cash in to keep them alive. With that horrible convertible debt and distracting Latvian wood chipping business now firmly out of the way, shareholders are in for a good ride I feel.|
|prettybullish: Kedco landmarks point to a brighter future
9:08 am by Ian LyallRural setting: The Newry plant (pictured) looks more like a large farm out-building than a power station.
At the start of the year renewable energy group Kedco (LON:KED) confounded the sceptics by raising finance for its biomass plant in Newry, Northern Ireland.
On Wednesday it delivered on its plans by exporting the first electricity from the operation following completion of the first phase of the development, which will have an initial two mega-watt ceiling.
By the final quarter of next year, the capacity of the facility, which looks more like a large farm out-building than a power station, will have doubled.
The focus is already turning to Enfield where Kedco has all the necessary permissions for a 12 mega watt plant.
It hopes to close the £35-£40 million debt and equity financing required to fund construction by the second quarter next year, with initial production slated for late 2014.
While the north London operation will significantly increase the company's scale, the importance of Newry, which is expected to generate £4.3 million in annual revenues and EBITDA of £1.9 million, cannot be over-stated.
It proves to the financiers and the wider market that Kedco can deliver renewable energy projects on time and to budget.
A debt for equity swap was recently completed with little fanfare or comment.
But it too has fundamentally altered the prospects of the company.
Most importantly it removed a financial millstone around the neck of Kedco.
However it has done much more than this. It peeled away the layers of uncertainty, allowing investors a clear view of the returns the company could generate over the coming years.
And in persuading the debt holders to swap into equity, Kedco has received decisive third party validation for its business model.
"There are a number of game-changers here. Obviously we are excited that we have started to export electricity. We have gone from being a developer to an operator and producer of renewable energy," said Kedco chief executive Gerry Madden.
"That's a key milestone for a company like this. But we have also had the conversion of debt into equity that really gives a clean break with the past.
"I believe the market did not reflect the underlying value of the assets of Kedco. The debt issue obscured this value. The conversion will clear that view."
A recent announcement revealed the group is also looking at a potential acquisition opportunity.
The details are necessarily vague at this stage, though Madden said it will broaden Kedco's spread of renewable technologies. It should also be value accretive.
Madden said: "It allows us to diversify our technology and development risk.
"It deals with small-scale wind and solar projects. So we are expanding our portfolio to include large and small-scale projects.
"It will also allow us to maximise our existing land positions because we can put different technologies on sites we already have. So we would look to put solar on Enfield and Newry. So we are also increasing the return to shareholders."
The current share price values the group at £3.5 million or less than one-year's revenue from Newry when it is at full capacity.
It takes no account of Enfield, or other potential sites in Derbyshire, Rutland, East Anglia and two fully permitted sites in the Republic of Ireland.
The Kedco chief will be hoping the latest efforts will chase the share price back towards the 2.5 pence level it achieved in November last year.
"That might be a more reasonable price," Madden agreed.|
|craftyspeculator: share price tanking - I guess dumping has begun|
|bubble pricker: ahstree, not sure it is shortage of shares, but Kedco is very thinly traded, so the market makers will not have much stock on their books. Any buying interest, like today, even in small volumes, will therefore cause the market makers to raise the price, as they do not want to deplete their positions, or even end up short.
It was the same thing on the way down earlier in 2010. Even the smallest sale caused the share price to move down a few cents. I have noticed that since that colossally stupid sale by a big (now ex) holder on 25th October, there has not been any further significant selling, so that probably explains why MMs do not have much stock, and any buying drives up the price.
Oilbagger, sorry I have not responded earlier. Not much time really at the moment. Basically, I got into kedco in early 2009 on the basis of triple carbon credits and the prospect of many possible new projects. Clearly the latter was overoptimistic, and I misjudged the difficulty of raising project finance. That said, at the current valuation, I think Kedco is good value and IF Newry gets operational, there will be a re-rating. That's a big IF of course, and the key risk at present. They must get Newry into production, no more delays...|
|bubble pricker: I do not understand why the share price fell so massively after the results. The result contain nothing new. Newry Plant close to completion, but still needs 2m more funding to enter the first phase. We already knew that. The London plant is blue sky at the moment. It has planning permission, that's it. Kedco needs to focus first on the Newry plant and I am sure that's what they will do. Once that is up and running and the concept proven, they can look for finance for the London plant, which will of course not all come through equity. Once the concept is proven in Newry, they will be able to access project finance for London.|
|craftyspeculator: the share price speaks louder than the last RNS....a missing section of the RNS should have said:
Regrettably we already have £10mn of debt on the balance sheet at the end of June 2010, and thanks to the progression of our projects, we now need at least another £60mn more funding to build the approved Newry and Enfield projects. Any further projects will require additional capital.
We recently raised Euro £2.8mn (Euro 3.2mn so we still need to find £57.2mn of additional funding in the short term. No one is going to lend us that amount of bank debt in todays market, as we are using new technology in the UK and Ireland, and therefore the projections we make for profitability are at best a good guess / best estimate. The best we can hope for is some type of convertible loans / fresh equity funding.
Today's market capitalisation of Kedco is (was!) 15mn. Additional funding of 65mn is now required. If we are lucky enough to get it, your shares will be diluted by 80% - so expect them to fall from 7c to 1.5c when reality about the scale of the funding requirement kicks in. If we cant obtain the funding and execute the projects then our business model doesn't work as we continue to burn the remaining cash we have on daily administrative activities. Sorry.|
Kedco share price data is direct from the London Stock Exchange