Aquila Energy Efficiency Share Discussion Threads

[brwo349] 15/3/2022 19:55

What a shambles this is. Directors resigning and no support for the share price. Near total silence from the board members that remain. How was this allowed to happen? I got a quote at 77p to buy today but didn't pull the trigger. I'll wait for 75p which I think we'll see soon.

[cc2014] 14/3/2022 16:12

Yeah. I think it has around 87p in uncommitted cash.

And at this time something up to another say 9p in committed cash


I would not be adverse to liquidation of this Trust. Further, Aquila have screwed up so badly they should think about returning 100p share and funding the gap between NAV and 100p themselves. Dream on. If that was going to happen the share price would be drifting up.

[jonwig] 14/3/2022 15:43

brwo - "committed capital" ... yes, you're correct, I overlooked their terminology.

So the cash really is free cash.

[cc2014] 14/3/2022 13:41

Also, what's interesting is the volume of trades going through is low. But nevertheless the sells keep turning up faster than the market can absorb them.

What is doesn't look like is a MM working an order for an instituation. It looks more like the MM's are trying to keep a flat book and keep adjusting the price down as the sells keep coming faster than the buys.


It's difficult territory now. The share price has fallen so much any buyer is going to be suspcious that it's too low for a reason and hesitate and those selling seem to just want to shift volume. Price isn't a priority for them.

[cc2014] 14/3/2022 13:03

I think I can help a little jonwig on the Factsheet.

The 96% in various must be the 17m euro "more efficient heating systems, insulation and windows" in Italy which do not fit in the other two categories of lighting and solar. This isn't one project but several but all the same type of stuff so that explains the size bars (I think)

Likewise the 17m euro is under construction and we can infer none of it was complete at Dec 21.


I wrote to the company with some questions on Friday. I got a quick response from their PR people. The response was really poor and I've had to go back to them to ask them to do better.


I have taken the view that I'm buying something worth 97p for 78p and the share price is depresssed because even if they invest the money today, it will be 6-12 months before the income starts flowing and so I'm really paying 78p for something worth say 92p based on opportunities elsewhere.

Of course if they are compleltely hopeless and it takes 2 years to invest all the money I'm paying around 78p for something worth 87p. On that basis the discount might be about right given the poor performance of the investment manager so far and the apparent inability of the Board to resolve it at speed.



What I can't understand is the following:
1. Why one of the major shareholders isn't moppping up the shares at this price and forcing either
a. liquidiation of the Trust
b. change in investment manager

2. Why Aquila who seems to be a large company with expertise in this sector have allowed this situation to occur and are continuting to let it go on. They would appear to have expertise to resolve it.



All a bit frustrating.

[brwo349] 14/3/2022 12:59

The bar charts do not show the uninvested cash, it shows committed capital only.
What do you mean the status? It has not been invested yet. I

[jonwig] 14/3/2022 12:17

I agree it's a weird set up.

Another odd thing about the December factsheet is that the 96% which is "various" appears as "Construction" in the last bar chart on status.

But on the "size" bar chart, 96% appears to be 2-10m (£ or €??). But over 90m is committed!So it looks like a lot of stuff.

So have they committed to buying something with the uninvested funds? And if so, what, and what risks are involved? (There are always risks with construction.)

If I knew I could buy over 90p in cash for 80p, I would, but the satus of the cash is completely unknown.

[brwo349] 14/3/2022 11:40

Still going down. I just bought 10K at 78p despite advfn showing 76.5p - 81p spread

[cc2014] 11/3/2022 15:04

I cannot get my head round this. Makes no sense to me. NAV 97p of which 10p invested and therefore 87p in cash. (with committments to invest around anothe 5p)

I have bought some more. 78.535p and 78.53p

I know there is a time cost of holding an asset not paying a dividend but this is ridiculous.


Oh and I finally got fed up and motivated enough to email the Board. Let's see how they respond.

[gopher] 02/3/2022 23:11

Just a waiting game until annual results statement when the full extent of the apparent inaction must be disclosed

[cynicalsteve] 18/2/2022 09:15

The factsheet is now available. The only new information I could see is that only another £0.8 million has been committed between December 31st and January 28th, disappointing that they haven't been able to speed things up. A takeover by another fund would be my preferred solution but Aquila would fight that. JLEN would be my choice.
PS On second reading I think the new investment is included in the 31st January announcement so the factsheet contains nothing new. However I recommend you have a look at it because the bar charts are hilarious!
My favourite is the Technology one:
Lighting 1%
Solar PV 3%
Various 96%!!!

[cc2014] 11/2/2022 12:07

Regrettably we are now in the dark compared with the larger players as to what happens next.

I guess we don't have much to think about until the share price begins with a 9.

[brwo349] 10/2/2022 16:39

It's recovering slowly

[cc2014] 09/2/2022 16:16

Pleased to see a floor got established around 80p and there is some tiny upward movement.

[gopher] 02/2/2022 17:13

Definitely cheap given equivalent SEIT is on a 12% premium.Clearly a board room bust up and my best guess would be it centres on the pipeline assets that Aquila had ready. My second guess is that these assets may have been available but not at the price/return the board originally expected.

[cc2014] 02/2/2022 13:23

A 250k trade appears at 80.8p. Unless some others arrive later it's hard to see it as anything other than a delayed sell from yesterday

It's the sort of size which would have accounted for the fall and if so one of the MM has plenty left to shift.

At least it probably puts a bottom on the share price

[cynicalsteve] 01/2/2022 13:37

At least there is now a cheap investment Aquila can spend all that cash on: Aquila shares! Seriously if a closed end fund doesn't buy its own shares in this situation then when?

[cc2014] 01/2/2022 13:22

I am quite interested to see what happens now. A purchase at 81.3p plus stamp duty compared with the NAB at 97p is a discount to NAV of 15.8%.

That sort of discount to NAV for a trust which is 80%+ in cash doesn't seem right to me.

It's hard to say how much volume the seller has left to shift if any. I can see 2 decent sized sells at 82p and 80p but in the scheme of things to an instiutional investor that's nothing.

[cc2014] 01/2/2022 12:45

Took 81.5p instead. If TRIG could make a bid at 95p that would do me fine.

[brwo349] 01/2/2022 12:43

you should have waited. Now 81.9999p

[cc2014] 01/2/2022 12:34

Getting stupid now. Just taken some more at 82.9p

[cc2014] 01/2/2022 10:34

I've decided to write to their investor relations. I don't think the current situation is good enough. Amongst other things I shall be asking them to waive or reduce their fees for the first 8 months.

[cynicalsteve] 01/2/2022 10:34

Just bought 3000. The problem Aquila have got is that they've become a speculative investment in a sector where investors usually look for certainty. Aquila need to do a deal somewhere near NAV and quickly.

[brwo349] 01/2/2022 10:17

Now 84.6p. I don't understand why they went quiet for 8 whole months with no update. It's like they didn't give a toss. Even if there was little activity they could still have updated the shareholders.

[cc2014] 01/2/2022 09:24

85.4p to buy now.