Compact Power Share Discussion Threads

[glenlivet] 11/3/2003 09:09

Kev,
You mention that "getting the Avonmouth plant to trade profitably must be a priority". Your comment suggests that the plant isn't trading profitably - what do we know about the Avonmouth plant profitability ? I have always presumed that it is profitable.

GlenLivet

[kevster] 09/3/2003 09:49

The quote made in the earlier post came from the interim results,

"Outlook

Despite the progress made, the longer than expected contract cycle previously
mentioned will affect the Company's results for the year ending 31 March 2003
which will be significantly below original expectations but remain in line with
current expectations.

The immediate focus of the business is to secure a contract for a larger
multi-tube plant, continue improving the availability and trading performance of
the plant at Avonmouth and carefully manage and control the cost base of the
business. To that end, the Board is planning to implement measures to extend
the Company's working capital horizon.

The markets for Compact Power remain driven by regulatory and environmental
pressures. The need for technology driven solutions to provide sustainable
solutions for waste disposal supports the Board's positive view of the Company's
medium and long term prospects."

I agree that costs need to be carefully watched, but hopefully a significant opportunity can arise which will underwrite any further share placement. I guess this may be represented by a contract for a 'larger multi-tube plant'.
Hopefully there will only be a need to raise further capital if a contract is awarded to Compact Power which requires a significant investment, and that would be all to the good.
However, getting the Avonmouth plant to trade profitably must be a priority.
For the moment, i'll continue to sit and watch this one and see what develops,

Regards,

Kev

[glenlivet] 14/2/2003 11:04

Kevstar, I guess extension of the "working capital horizon" can be done 4 ways: 1.raise finance on Stock Market, 2.raise debt, 3.introduce private equity or 4.reduce costs.

1.They've already had one go at the market and haven't yet delivered the business plan proposed in the prospectus. I would be surprised if there is a sufficiently attractive additional value proposition (beyond that in the Prospectus) to encourage new money from the stock market.

2.I guess the banks are going to be very wary of lending to fund business development activities. If CPO hasn't secured plant contracts yet, what chance have they of delivering in the near future.

3. Introduce other equity - probably won't be welcomed by the existing shareholders who might be diluted.

4. Reduce costs ? Seems the obvious option to me. But how far do they need to go and what scope do they have to reduce costs. Also if they reduce costs does it threaten their ability to deliver value (plant sales and collaboration agreements). Anyone know more about their costs base ?

[glenlivet] 14/2/2003 10:51

Now that Eurocare are in trouble over clincial waste disposal malpractice, there could be an opportunity for redirecting such waste to Compact Power's Avonmouth plant. It seems to be the ideal technology and could provide Compact with an opportunity to pick up a longer term contract.

[magic198] 05/2/2003 21:29

Eventually, provided they do not run out of cash first!!

[gran] 05/2/2003 15:41

These recent announcements of collaborations seem hopeful for the future. Does anyone have any idea whether these types of deals will lead to income / profits?

[magic198] 16/1/2003 09:56

Thanks for info, recent spanish announcement encouraging, but recent post/comment on working capital may be worrying for short term price performance, where was this released? If true, this indicates a big placing looming, any other thoughts on this one?

[kevster] 14/1/2003 16:30

The immediate focus of the business is to secure a contract for a larger multi-tube plant, continue improving the availability and trading performance of the plant at Avonmouth and carefully manage and control the cost base of the
business. To that end, the Board is planning to implement measures to extend the Company's working capital horizon.

Not quite sure what 'extending the working capital horizon' might be, but sounds like raising finance. However, Avonmouth is not yet profitable. Looks like a useful company though, with some good technology, if they can make it work then all well and good, but as for short term cheer, there could be little on the horizon,

All imo,

Regards,

Kev

[magic198] 09/1/2003 16:02

Anybody got a cheery new year message for suffering CPO holders?

[gran] 20/12/2002 08:54

Merry Christmas to all Compsct Power holders!

[gran] 22/11/2002 11:47

Yes, me too. I'm really hopeful for the development of this company in the long term.

[scotty2dogs] 22/11/2002 09:45

Good press release from these chaps--well down from high--read the news and see what you think--I got some when they fell and am locking away in bottom drawer-looks a nice long termer.

[salpara111] 03/11/2002 22:59

It really does leave you wondering about the competence of the management when the CEO buys 50,000 at 48 pence less than 3 months ago. You have to wonder why he chose to buy when he should have known that there were nasties in the upcoming half year results.
I have been watching this company but it is way to early in their development cycle to even consider taking a stake. I like the idea and if there is one area which is ripe for long term growth it is waste management. Having said that, I suspect that it will be about a year before I will make an investment, it is still far too early in the companies' life cycle at present.

[slimgirl] 23/10/2002 08:24

Well what a punch in the guts. I get my morning cup of coffee and nearly choke on a bid price of 10p! Surely the reaction was far, far too harsh. If I'd have had any spare cash I'd have snapped some up right away. Trouble is, this was my spare cash in the first place! Now hoping this comes back up to a sensible price.

[gran] 23/8/2002 13:53

The Chief Executive has bought 50,000 shares at 48p for the second time. It must be that he thinks this is too tempting a price to pass over. I hope so too!!

[stable] 13/7/2002 19:11

I have been watching CPO for a bit, Still seems that there is an overhang which I understand is a Canadian outfit.
The whole story looks good, still waiting.

[sofa_surfer] 05/7/2002 19:07

Prelim results on July 8th for the year ended March 31 2002, relating to the period before flotation should help us get a better idea of the value of this interesting little co.

Good to see that the CPO renewable energy and thermal recycling plant has now performed at expected capacity levels.

I still feel it’s too early to buy into these, Monday should help clarify that some what. Watching with a very keen eye.

SS

[pugugly] 01/7/2002 16:41

Big boys selling on the press tip - 100,000 T sell at 57p. I think this may be a good indicator but DYOR.

[gran] 01/7/2002 08:36

Big jump back up this morning. The market makers must have read the Telegraph!

[thecleaner] 30/6/2002 10:40

Tipped in Telegraph today

[slimgirl] 27/6/2002 08:49

Does anyone know if this company has any other deals in the pipeline? Are any other Local Authorities going to want one of these?

[fantasticmrfox] 20/6/2002 13:26

I know the tech and the mgt. Both are sound. This is a credible long term hold. Its just a pity somebody seems to have dumped a lot on the mkt. But then again I've already bought.

[jps25] 31/5/2002 17:11

I had been waiting for comments..
I have been watching this company for a few weeks now, as the area interests me. However apart from the website and newspaper articles it is difficult to see whether they have a practical solution.Seems to have a credible technical management hopefully are good financial managers and salesmen too.

[johnstia] 31/5/2002 10:30

Check out the web site www.compactpower.co.uk

[slimgirl] 31/5/2002 08:30

Looks like a big step forward with the Cornwall deal. Does anyone out there have any information about this company's technology. Is it going to be the best thing in waste management since sliced bread? If it is I'm in! This must be the growth area of the next twenty years. Otherwise we'll be up to our necks in it.