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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Eaga | LSE:EAGA | London | Ordinary Share | GB00B1P75854 | ORD 0.1P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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|---|---|---|---|---|---|
| 0.00 | 0.00% | 118.50 | 0.00 | 01:00:00 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| - |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| - | O | 0 | 118.50 | GBX |
Eaga (EAGA) Share Charts1 Year Eaga Chart |
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1 Month Eaga Chart |
Intraday Eaga Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 02/3/2011 | 10:28 | eaga plc | 592 |
| 31/1/2008 | 13:48 | eaga floats | 151 |
| 20/11/2007 | 19:06 | eaga floats | 62 |
| 07/6/2007 | 11:59 | eaga | 6 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
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| Top Posts |
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Posted at 12/2/2011 13:47 by keywestcopy This is the first share i have owned that is now party to a takeover, what is the normal procedure? What is the share price likely to do? Do you sell or take shares in the new company? .... any tips would be appreciated. |
Posted at 11/2/2011 08:47 by eeyrcr Great News!!Does this... "Irrevocable undertakings have been received from the Eaga Directors, and from Eaga Partnership Trustee Limited and Eaga Partnership Trustee Two Limited (together, the "ePTs") to vote in favour of the resolutions to effect the Scheme in respect of 102,520,847 Eaga Shares (representing, in aggregate, approximately 40.8 per cent. of the existing issued share capital of Eaga)." ... mean that there can't be any counter-offer? Looks like there's still quite a lot of buying going on...? - Chris |
Posted at 03/2/2011 13:40 by nicobellic The RNS would appear to indicate that the offer is due to a belief in PV. Not sure what the future value is. Perhaps another consideration is to start by looking at what value the employee trust and directors had at ipo. IIRC the ipo was at 181p and directors had c2%/£6mn each. At today's share price they would be accepting a mighty loss but might just be happy to see the money?Personally I think the trust is the biggest obstacle. They have a duty as trustees to act in the best interest of beneficiaries. If their holding is c50% down on float you can imagine that they would want to see a price struck some way north of this to justify selling. Worth a punt. |
Posted at 26/12/2010 14:27 by nicobellic I closed my short when it breached 60p - seemed like a sustainable level.Do either of you read the news? The scheme for people on benefits is called warm front. In the CSR the budget for this scheme was cut by 50% in 2011 and a further cut for 2012. Eaga have even announced through the media that they wouldn't be processing any further grant applications until April 2011 (search the BBC news site). In December eaga confirmed that they were likely to make 700 employees redundant. All warm front employees are currently at risk of redundancy. By their own admission Eaga know that warm front is finished. 'Eaga is central heating' - really? How many heating engineers do they have on their books? They have been reducing numbers for the past 12 months because the private work isn't happening and the loss of warm front means they can't justify the numbers. Read the eaga analyst presentations and it's very clear that their strategy is based on renewables. A good move but not something that will solve the £500mn loss of warm front. I'm told the IMS in January will not be well received in the city. We'll see who's correct.... Jabs - are you still in Sea?... |
Posted at 13/11/2010 20:31 by rk23 Keen on cheap, high yieldersfinancialtimes In the past year or so, my own inclination - and the advice I have had from my IFA - has been to "buy on the dips" in the equity market. But the dips have been few and far between. So I haven't quite got round to it with any great enthusiasm, with the result that my portfolio is still around 11 per cent in cash. Outside of my pension fund and Sipp, where I did recently reduce the cash holdings with positive results, and some additional investments into my coin collection, equity investments I have made recently have tended towards the higher yielding end of the spectrum. The three holdings I have added - National Grid (LSE: NG.L - news) , Merchants Trust and Local Shopping REIT - are all now in profit and have collectively more than made up for a hefty loss incurred in a premature investment in BP at the height of Gulf of Mexico oil well debacle. Given the success of this policy, I am wondering whether to do more of the same. The problem is that many of the stocks with decent yields and respectable cover fall into the insurance category. Catlin, with a cover of 3.6 and a projected yield of 7.8 per cent, might ordinarily seem attractive, as might Novae (cover of 3.3; yield of 6.3 per cent) or Beazley (2.5 and 6.4 per cent) or even Aviva (2.3 and 6.4 per cent). But I am cautious about investing in this sector. Despite having worked for two insurance groups, this is neither an area that I pretend to understand in any depth, nor one where I have had any conspicuous investment success. Instead, I am turning to companies that appear to be casualties of the recent public spending review, but where the share price action may have been excessively negative. One obvious candidate here is Eaga (LSE: EAGA.L - news) , the energy efficiency business. It derived a considerable amount of revenue from the government's "warm front" scheme, designed to foster energy efficiency measures in poorer households. Funding for this scheme has been cut to a third of its previous level. I make no further comment on the trivial amount of money that this rather mean-spirited decision has saved. While revenue from the Eaga division, of which the "warm front" initiative formed a big part, represented more than half of the company's total revenue, in profit terms it was less important, contributing only around a fifth of operating profits. Nonetheless, while it is possible that Eaga may be able to cut costs to reduce the impact of the lost revenue, there is little doubt that profits will suffer. However, this is not really the point. The question with high yield investing is whether or not the dividend that generates the yield is secure. Here, one can perhaps be more confident about Eaga. The payout is currently covered three times. Even if profits were cut in half, the cover for the dividend, though not generous, would still be adequate. The cost of the dividend, at £5.7m, is not large in the context of a company that generated £26m in operating cash flow last year and which, in addition to the dividend, spent £4.8m on share repurchases. Also, the employees are large shareholders, both directly and through the employee share trust, which also argues against a cut. Finally, the group has no borrowings and substantial cash balances. All of which makes a near-halving in the share price in the past few weeks look like something of an overreaction. So does this add up to a risk worth taking? I haven't made up my mind yet. Peter Temple is an active private investor writing about his own investments. He may have a financial interest in any of the companies and trading strategies mentioned. |
Posted at 22/10/2010 19:34 by thorpematt KBC Peel Hunt maintained its 2011-12 profit forecast at £53.8m after the recent interim management statement, rising to £55.2m the following year. The broker believed that Eaga would be a long-term beneficiary of government measures even if 'Warm Front' was phased out. The uncertainty about the replacement schemes means that, at best, the benefit may take some time to show through. Eaga is hopeful that an obligation for energy companies to provide help to poor households, plus the Green Deal and Renewable Heat Incentive programmes, will provide opportunities to offset the loss of revenues. Feed-in tariffs for renewable generation are being refocused on the most cost-effective technologies at the next review date. "Eaga shares are tanking because of the phasing out of the Warm Front scheme, because the uncertainty over what will replace it gives little reason for investors to buy the share," said KBC Peel Hunt analyst Henry Carver. "However, although it accounts for 50 percent of Eaga's revenues, margins are only 2 percent, so it generates less than 20 percent of profit, and the company should benefit from the drive towards energy efficiency generally," he added. 21-Oct-10 KBC Peel Hunt Hold 70.00p old target: 180.00p New: 95.00p DownGrade 21-Oct-10 Panmure Gordon Buy 70.00p old target: 175.00p - Reiteration 21-Oct-10 Liberum Capital Sell 70.00p old target:120.00p - DownGrade 21-Oct-10 Collins Stewart Hold 70.00p - - DownGrade 21-Oct-10 Execution Noble Hold 70.00p old target:155.00p New: 90.00p DownGrade Not much consensus there really but only LC are selling at 70p. So maybethis will settle in a tad higher than current share price ..? |
Posted at 20/10/2010 16:00 by etome Oops...Eaga plc Comprehensive Spending Review Eaga notes the statements included as part of the Government's Comprehensive Spending Review earlier today which confirmed the departmental spending budget for the Department of Energy and Climate Change ("DECC"). This statement confirmed that the Warm Front Scheme would be phased out as part of the transition to "Green Deal". The subsequent press release from DECC outlined a smaller, targeted Warm Front programme. Funding for the Warm Front programme for the 2010/2011 fiscal year is currently GBP345m and the statement today confirmed a budget of GBP110 million in 2011/2012 and GBP100 million in 2012/2013 which is materially lower than our expectations. Eaga will be discussing with DECC the operational arrangements for the Warm Front scheme for this period and will be considering the likely resultant impact on Eaga's performance. The announcement also confirmed the Government's ongoing commitment to the issue of climate change with specific commitments to the Green Deal and Renewable Heat Incentive programmes, together with a new obligation on the energy companies to provide greater help to the most vulnerable fuel poor households. The statement also confirms that Feed In Tariffs for renewable generation will be refocused on the most cost-effective technologies, such changes will be implemented at the first scheduled review date unless higher than expected deployment requires an early review. These areas represent significant opportunities which Eaga is pursuing. - Ends - |
Posted at 06/9/2010 12:33 by nicobellic Not quite as rosy as you make out. I honestly don't think the CNT situation has had any effect here - look at the share price since float and you'll see it's avg is c140p. Probably undervalued at present but with good reasons: People were more worried by the loss of WF's £1.5bn than they were about dso's £500mn. I'd remained worried as it's unlikely that WF will be replaced with a scheme rolled out in a similar way - I expect it will be via local initiatives rather than centrally. Large number of MP's unhappy with WF/eaga and DECC aren't likely to forget the volume of criticism coming from the heating and insulation lobbies about the way contractors have been treated. CERT extension isn't the answer either - BG have decided to enter the insulation marketing and will take market share and be big competition. CNT will probably lose some of their contracts, but with a c3% profit margin on contracts such as FM/emergency or planned repairs I'm not convinced I'd want eaga to take them. Cash in the bank shouldn't be wasted on resourcing this. BPO - have eaga won anything yet? What happened to the 'real partnership' with one of the northern city councils? FA. |
Posted at 07/1/2010 13:13 by darola Nice RNS! Hoping for good things from EAGA share price over 2010..... : ) |
Posted at 13/6/2008 21:13 by needs_to_be_perservd thought il post this, date june 2007, makes an interesting read, specially this part:"And there is certainly no reason for investors to dismiss Eaga which boasts an eye-watering £3 billion order book and which provides 88% and 71% visibility of broker forecasts for the next two years." and heres the full article, Sharewatch) Tipped in March, Eaga will have started trading on the Full List two days before this issue was due to land on doormats. The fact that the group has had a curious history, starting off life as a charity plus the fact that it operates under the various names of its subsidiaries, means that the Eaga name is unlikely to be familiar to many investors. The jewel in the group's crown are the contracts Eaga holds to manage government funded schemes to eradicate the problem of fuel poverty (where a household cannot afford to keep warm). In the early days, Eaga simply administered the scheme and managed outside suppliers but the company has been particularly energetic in acquiring businesses which can carry out much of the work themselves, such as home insulation and the installation of energy efficient central heating systems. These services have taken off and Eaga has begun winning work in the social housing and utilities sectors through a number of long-term frameworks. Chief executive John Clough, who has been with the firm for 15 years, says that a rebranding is planned with all operations to adopt the Eaga livery, which will make the company better known amongst investors. And there is certainly no reason for investors to dismiss Eaga which boasts an eye-watering £3 billion order book and which provides 88% and 71% visibility of broker forecasts for the next two years. No new money needed Eaga has its origins as the Neighbourhood Energy Action (NEA), a charity organisation established in 1990, with responsibility for administering Government grants for low income households. In the early days there wasn't much of a business with the company, which is now highly profitable, struggling along on a relatively low level of sales. But the picture brightened in 2001 when the government increased its commitment to this area by publishing its Fuel Poverty Strategy and putting out a number of competitively tendered "fuel poverty" contracts to manage the grants. In the same year, Eaga saw a change of ownership when the business re-registered as a limited company in order to bid for these. These contracts, allied to some judicious acquisitions we have alluded to, mean that in the year just ended on 30 May, Eaga is forecast to make a pretax profit of £30.3m on sales of £497m. The previous year it made a pretax profit of £20.5m on sales of £354m. And unusually the company has had no real need to raise new money. Instead, the float this month of the company, which has had no external investment from the VCs, was mainly to enable the Employee Benefit Trust (EBT) and management to realise a partial exit. Following the float, which has raised £190m for those selling shareholders and £30m new money, the board and senior management own c.12% and the EBT has c.34%. Triple whammy of growth drivers As Clough, a former executive at British Coal, says, Eaga is benefiting from a triple whammy of growth drivers. First is the continuing government commitment towards improving living conditions for poor and vulnerable households. Many of us are fortunate enough not to worry too much about our fuel bills as they typically account for a relatively small part of our overall income. But there are many households in the UK spending more than 10% of their income on fuel, whether on heating, hot water or appliances and these are precisely the households that the government is targeting. The government aim is to have eliminated fuel poverty in vulnerable households (the old, children and those who are disabled or have long-term illnesses) by 2010 and for all other households by 2016. As Clough explains in vivid terms, many of the customers it is targeting are spending between 20% and 30% of their income on energy and the situation is becoming worse driven by low incomes, high fuel prices and poor quality housing. The funding available under these so-called Warm Front improvement programmes has increased significantly in recent years. Under the scheme, eligible recipients receive grant-funded support of up to £2,700 (slightly more in remote rural areas) for cavity wall and loft insulation and new energy efficient boiler replacements, which are the most cost effective method of reducing energy bills. The funding available has grown quite quickly to £345m annually with the government well behind its 2010 targets, with an estimated 2 million households still in fuel poverty. A second reason for investing in Eaga is that since 2002, the utilities have also evidently been investing in better insulation or more efficient boilers at customers' homes. That might sound counter-intuitive as this is not in their best interests but the utilities are under pressure from their regulators to reduce domestic energy usage or face hefty fines. Clough says their annual spend is £150m a year, expected to rise to £300m in 2008 and to £600m by 2011. Clough points out that it is not just fuel poverty and increasing utility spend which are benefiting his business. In addition, there are other drivers such as a rapidly ageing population and the problem of climate change, which now affects many investment decisions. New business model Since 2000, Eaga has held the Warm Front contracts in England and HEES, the equivalent contract in Wales. Both these contracts were retendered in 2005 and presently run to 2010. In some ways, Eaga can fairly claim comparison with another Sharewatch winner, Carter & Carter (CART; 1090p), as it too has become self-fashioned around a government funding commitment. In Eaga's case, until three years ago, under the early contracts it was effectively only a managing agent for the government and took a slim margin by administering the grant scheme and monitoring the supply chain. But the last three years have seen a seismic shift in the business. Clough has bought three of the largest domestic insulation suppliers in the UK and also built a central heating installation business from scratch before recently beefing it up with a couple of acquisitions (Eaga is now the second largest installer of central heating systems behind British Gas). Clough highlights that Eaga now operates a complete end-to-end, outsourced program for Defra, the Welsh Assembly and Department of Social Development in Ireland. In return it generates a fixed monthly fee and also a high variable fee for each house. Under the government contracts in England and Wales, the gross margin is fixed at the outset and indexed. In the year to 30 May 2007, these are forecast to account for sales of £367m, up from £246m, and a margin of 1.9%, the low margin being a reflection of the fact that this is a low risk activity for Eaga. The potential claimant's call to the group's 200-seat call centre at Gateshead is just the start of the process. Eaga will assess each one for eligibility while all households are inspected by one of its surveyors and Eaga will then either use its own contractors to do the work or arrange for it to be done by one of its external suppliers. After that, Eaga will perform an annual service visit for the first two years and also provide breakdown cover. Delivering 30% of the work in-house Under the current contracts, Eaga is allowed to deliver 30% of the work using its own directly employed tradesmen and manages 120 contractor firms to deliver the other 70%. When put together with the other services it provides, it becomes clear that there is no other single player with the national footprint and systems to cope. That's what makes these such beautiful contracts since the income therefore tends to be regular, secure and long-term. The most visible manifestation of this is in Scotland where last October Eaga chose to relinquish its contract when it was retendered. That was mainly because the margin was deemed unacceptably low. But even after the contract ended, Eaga found itself to be the largest subcontractor to British Gas, which took over the contract and struggled with the practical problems of meeting the critical service. Installation services The type of work undertaken by Eaga's installation division is by its nature labour intensive and has lifted group headcount to 2,700. Moving into the supply chain has given Eaga a number of other benefits. First, cashflow is strong as the government pays Eaga in advance of it having to pay its subcontractors. Second, installation margins are higher. Third, Eaga has been able to use the same workforce to not only deliver as a sub-contractor to its own government contracts but to also look at new markets with the utilities (British Gas, Powergen, EDF Energy and Scottish Power are all customers), local authorities and residential landlords for the social housing sector. Eaga's insulation arm provides a full range of domestic insulation services including cavity wall, loft and external wall insulation services. The business trades under the Millfold brand in England and Wales and Everwarm in Scotland. On the heating side, Eaga installs and services central heating systems, primarily in the social housing sector under the brands HEAT (in Ireland) and JD Heating (Birmingham) and as a sub-contractor to the government under the Iguana brand. Installation services - margins rise to 10.8% Revenues from installation services have ballooned from a standing start in 2005 to forecast sales of £159m (including intra group sales of £67m) and an operating profit of £17.2m in the current year to 30 May. That is up from sales of £77.9m and an operating profit of £5.1m. Margins are forecast to have increased from 6.5% to 10.8%. The twinkle in Clough's eye is the work coming from the social housing sector which already accounts for almost half the work and is likely to grow as Eaga is often finding itself being asked to perform other work such as kitchen and bathroom installations, an area it may move into in the future. Who says elephants cannot run? The final part of Eaga's business is that which Clough calls "specialist support services." This is the smallest side of the group but has the highest margin. Sales in the current year are forecast to be £44.7m (including intragroup of £7m) with an operating profit of £5.8m. The division has a number of revenue streams, chiefly the wholesale distribution of insulation materials, a warranty scheme enabling domestic householders to buy a policy covering emergency repairs and the provision of aftercare for boilers installed under fuel poverty contracts. With a market capitalisation of £453m at the float price of 181p, Eaga is clearly a bigger business than the kind we normally cover at Sharewatch but the group has so much going for it. Who says elephants cannot run? Brewin Dolphin is already forecasting pretax profits reaching £30.3m for the year just ended on 30 May, rising to £37.5m in the current year and £41.5m in 2009 and there is a strong chance that these forecasts will be exceeded given that the group is bidding for a roster of new contracts, not only social housing but also a digital switch-over contract for vulnerable households (which could be worth £400m over six years) and outcomes will be announced in the next few weeks. We think the shares, which we suggested applying for in the April issue and for which I have applied, will do well. Buy |
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