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REAC React Energy

7.125
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
React Energy LSE:REAC London Ordinary Share IE00BH3XCL94 ORD EUR0.1
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 7.125 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

React Energy Share Discussion Threads

Showing 451 to 475 of 850 messages
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DateSubjectAuthorDiscuss
16/9/2014
07:34
Ticked up another penny this morning, ADVFN charts not showing it though, now 15p-16p.

DYOR,

Trout.

troutisout
15/9/2014
21:27
Hi Timbo,

I think this liquidation will be neutral in terms of the accounts, as the subsidiary accounts are bundled into the group accounts.
However I am sure there will be extra costs to change the technology provider, I can't remember who mentioned it but someone made comments that the technology in Newry was not working as well as people thought.
Then there was the change in planning for Enfield earlier this year, importantly it was all about changing the gasifier technology from the Zeropoint technology (installed at Newry) to the Nexterra one.

One big difference is the Zeropoint (Newry plant) was modular and could be built up in stages, so there is likely to be a larger upfront cost for Newry now, to get it up to 4MW. However I think there is a bigger picture being played out, The change in the financials for Enfield suggest the Company realise they were unable to keep such a large share of these big projects and with a 92% economic benefit from Newry, I could see any further cost being farmed out to a third party in return for some of that economic benefit.

At the end of the day the Newry plant was not performing as expected and with the phase 2 money secured they needed to do something, it has taken time but they have now made a decision to change the technology and hopefully this can be done as soon as possible. The share price has been battered by the uncertainty, but now things are starting to get clearer then hopefully more people will see the investment case here.

The market cap is just over £4m, yet REAC have got projects in either late stage or actually producing that are worth far more than that, debt was a reason but they have recently managed to move €3.5m of debt off the balance sheet, with the recent liquidations.

I have a feeling we will see lots more news over the coming weeks and will know a lot more by then.

Trout.

troutisout
15/9/2014
10:13
What I was trying to work out with the various liquidations was, as they seemed to have the same directors and presumably shareholders in common, whether it was broadly neutral for REAC/directors and whether it allowed them to withhold payment from the Newry equipment provider...Thanks Troutie for your comments and research (I'm one of the silent readers!). Just for the record I hold just over 75k shares in REAC...
timbo
15/9/2014
08:15
Just a reminder of the Newry project with some of the figures, which when compared to the current market cap make interesting reading. Look at the last
bit showing the projected turnover and EBITDA, remember REAC have several projects already producing and a large pipeline of projects in various stages of development.


"The project cost Stg£16m to construct and was funded through shareholder equity of Stg£6.8m and a project finance loan of Stg£7.9m from Ulster Bank Ireland Limited, a subsidiary of the Royal Bank of Scotland plc.

REACT Energy plc invested Stg£5.5m and retains 92% of the economic benefit of the project whilst Farmers Business Development plc retain the balance of 8%.

Heads of terms have been signed with a UK based VCT fund to invest a further Stg£1.5m to facilitate the completion of Phase 2 of the project."


"Once fully operational the project is forecast to have a turnover c.Stg£4m which should deliver c.Stg£2m of EBITDA."

troutisout
15/9/2014
08:07
Morning all,

The intraday chart isn't working at the moment it is stuck on Friday's close at 13.75p.

The MMs dropped the price pre-opening this morning to 12-14p, this has then ticked up 3 times with buys and has just gone blue at 13-15p.

Since posting the chart last night, I was looking into Newry, we know there were problems with the gasifier technology, a poster mentioned it here months back and the Company said they had been delayed by negotiations with the technology provider which may not come to a conclusion. It now seems that they have bitten the bullet and will be signing a new technology provider, in fact a new EPC provider, which I think will be MWH and the Nexterra gasifier.
The MMs must have taken the RNS last week as negative but hadn't realised that KBL was a subsidiary of REAC and so both sides of the debt already appears on our accounts. A REAC subsidiary owes REAC and both sides would be consolidated into the accounts. I think they put this in as the last liquidations RNS meant that debt was wiped off the balance sheet, which won't happen in this case.

The most important part of this is that they get Newry phase 2 and I assume phase 1 replacement done as soon as possible, REAC take a 92% revenue share from the production at Newry so it needs to be up and running.

I also think they wouldn't have called to liquidate KBL if they weren't already sure they have got the new EPC contract in the bag.

DYOR,

Trout.

troutisout
14/9/2014
21:11
A look at the two year chart shows a long downtrend and the recent rise now puts the share price back up to the trendline. It will be interesting to see if there is enough strength to push up through this and will this mark a new uptrend.

The late RNS on Friday suggests we will hear shortly about Newry's new EPC provider and hopefully we will get news on the Enfield progress. These are the two things that will tip the scales back towards positivity in the SP, as they are valuable assets that will bring in a very good revenue stream.


free stock charts from uk.advfn.com

troutisout
04/9/2014
08:45
Trout "Morning All", I like that!
big7ime
01/9/2014
17:22
LOLs, I thought the buys this morning may have moved the price, but I see a 1k £125 sell came in and moved it down.

This is a major problem for REAC, the lack of MMs covering the share and it's illiquidity mean the MMs can do as they please. When buys come in they shut down the amount on offer (likewise on selling) and yet when they want they will move on a tiny trade. This in turn puts off buyers as can be seen over the last three weeks (have a look how many buys were subsequently sold again).

This is not a trading share and people need to have a longer term view when buying.
I still see it as a good investment, especially from these levels! However they do need to start the newsflow rolling and show us that they are getting on with developing their assets and bringing them online. Enfield financial close is a must in this respect, it will show they have the ability and backing of co-financiers to move into the production of renewable energy on a larger scale. It will also bring in the cash development fee, which can then be used to pay down debt and start to bring forward other near term developments, the Irish wind turbine projects that are construction ready. However it will also be the conclusion of the due diligence process undertaken by the co investors and this will bode well for the other large projects like Plymouth and Clay Cross.

If they can get the terms sorted this month and then financial close before Christmas, I would expect the share price to be a lot higher going into the New Year.

The build out at Enfield will take a good year and so as this develops the Company will need to bring online other smaller projects, with GGES and Reforce projects build ready they can do this. They also need to get Newry sorted and the second 2MW built and all working efficiently, this should be generating revenues now but I suspect they are not doing that well on that front.
Lastly when the build out of Enfield starts they need to further both Plymouth and Clay Cross plants towards full permissions, agreements and financial close.

troutisout
01/9/2014
12:40
Only offering 2,500 shares online a whole £350's worth......

A few looking in here but not posting, I wonder whether that will change when we get news of Enfield terms, especially as financial close would trigger a sizeable payment.

"The Company has sought to change the structure of the transaction, which is now expected to see REACT receiving a cash development fee on financial close"

troutisout
01/9/2014
08:20
Morning all,
Back from hols and catching up on shares this morning, the recent RNS is very good news, although I got no individual reply from my email regarding the clarity of the first RNS, they have cleared both my points in the recent one. I was unsure that this debt was likely to mean REAC paying off creditors and also whether this meant that the debt would be removed from the accounts from then on.

It doesn't and it has been.....

This is brilliant news and I am somewhat surprised that this hasn't had an effect on the interest here. Firstly if they had just had a €3.5m boost it would be treated very positively at this market valuation, however as it is a reduction of debt from the balance sheet PIs seem oblivious to the benefit.

However for me the important thing is the emphasis again on this being the final stage of the restructuring.

I think this was needed before the terms for financial close for Enfield could be agreed with funding partners, I expect to now see that happen shortly.

For the post above, can I point out that apart from the fact that anyone would struggle to sell REAC shares in large volume without getting a matched buyer, if you read the last financial report (page 69) you will see the loans were secured back in 2007 and on certain assets of the subsidiaries and personal guarantees from individuals. These individuals are former directors and one current director.
Note that also there were property and other assets that the lenders had charges over.

I read it as the assets were written down to nil but the debt was still on the books, this needed a formal closure and liquidations of these dormant companies was the way.

Anyone else looked into this???

Trout.

troutisout
27/8/2014
21:54
REAC may have walked away from a subsidiary debt burden, but
remember:

“The remaining bank debt resides in Kedco Block Holdings
Limited, Kedco Energy Limited, Granig Trading Limited and Castle
Homes Supplies Limited, which are all Group companies. These loans
are secured on assets in these companies and by personal guarantees
given by certain directors. There is no contractual recourse to
Kedco plc in relation to these loans.”

Those Personal Guarantees will probably be called so unless certain
Directors have wads of cash, chances are they will have to flog
REAC shares in order to pay the PG's = stock overhang = why this
apparent good news story still leads to a lowly 13p per share.

craffert
27/8/2014
17:23
Walked away from the debt..?
colp54
14/8/2014
23:06
for those that haven't looked much at the company before, have a look at some of the first posts on the thread,
troutisout
14/8/2014
23:03
Hi Callum, I thought you might have got a few early on.

I read your posts yesterday and saw your ceiling purchase price.

Can I ask whether you have worked out a valuation hence your limit or whether it is just to do with numbers?

I have been looking at the possible valuations as certain projects come online, it seems very cheap at the moment and this is borne out with the recent Enterprise Ireland conversion for shares at a price of 38p a share.

Also GGES shareholders accepting shares priced at 38p for their company.

Unfortunately it really is all about Enfield at the moment if they can get financial close then this will motor.

DYOR,

Trout.

troutisout
14/8/2014
22:47
Unfortunately didn't get any more Ryan and as I said yesterday I won't pay over 15p. Will top up on any pullback below this level though.
callumross
14/8/2014
19:38
£2.2k of sells dropped it 30% yesterday and £29k of buys got it back up again.

A great rebound and the MMs are a little stuck. We have all seen how they drop it on small sells but now they have been hit with lots of buyers.

A great amount of interest today on the BB 75 users and 177 page views and only one post.

and I agree with that post, well done callumross, did you get anymore at the opening?

ryan83, you mentioned their finances yesterday and the 'placing' word, the recent conversion to shares by EI was for €500k and they agreed to do that for shares at 38p. Why would they do that if there was likely to be something that will act negatively on the share price.

In the same RNS they state they are changing the terms for Enfield so that they take a 'cash development fee', now that should be several million, having spent over £2m on the development so far, but if it includes 'added value' then it could be quite a bit larger.

Also they now have the £1.5m from the recent loan note, these have been changed slightly with a lower interest rate and importantly are now for only 12 months rather than two years. I took that to mean they would be able to pay these back using Enfield 'development fee'.

Trout.

troutisout
14/8/2014
10:01
welldone CR!!!!
ryan83
13/8/2014
17:33
Don,
I think this is all part of the restructuring away from previous Directors, the recent conversion of the EI preference shares into equity has also taken €500k off unsecured loans.

I would suggest this is all part of entering into a new term agreement with finance partners for Enfield.

I think the MMs have dragged this down on nothing apart from the term 'winding up' in the RNS title, not well thought out.

Let's face it £2.2k of sells allowed the MMs to drop the price 30%.

Trout.

troutisout
13/8/2014
17:22
Hope it turns out to be a "nice" price Ryan. Been on my watchlist for while and my holdings are usually around the £6k mark so will get more in coming days up to but not above 15p
callumross
13/8/2014
17:08
Evening all,
I emailed the Company earlier to ask for more guidance, especially as I too saw in the previous restructuring RNS,

"The remaining bank debt resides in Kedco Block Holdings Limited, Kedco Energy Limited, Granig Trading Limited and Castle Homes Supplies Limited, which are all Group companies. These loans are secured on assets in these companies and by personal guarantees given by certain directors. There is no contractual recourse to Kedco plc in relation to these loans."

troutisout
13/8/2014
15:41
nice price CR, agree with dons post above
ryan83
13/8/2014
15:39
It is good news for their balance sheet but the market is not picking this up.

Also why did the company announce at this particular time. Either the debt was called in or the clean up to their balance sheet is required for bigger and better things. These events are usually staged managed.

1973don
13/8/2014
15:31
Well I couldn't resist buying 15k at 11.65p at the close.
callumross
13/8/2014
15:13
oh Trout , you do pick em !!!
chainfish1
13/8/2014
15:09
Surely good news then, don, so why the share price fall? Loss of confidence in the company?
callumross
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