Eaga Share Discussion Threads

[honiton] 09/11/2010 22:24

um...i reckon

business model now bust
cost base too high given reduction in business size
minimum 2,000 redundancies
no viable long term future

sorry, if you wwant to make some money i suggest house builders (BKG, BWY) and construction (Kier)

[semper vigilans] 08/11/2010 09:59

Having had experience of Warmfront fitting a heating system, the sub-contract plumber was great, but the Eaga admin was appalling.It's also not an easy name for Geordies to pronounce!

Calls not answered, problems not resolved - they give three year service contacts on the boilers, but will they be around to honour these?

[nimrah] 05/11/2010 20:56

there will be an other profit warning the share will suffer sell on any rallies

[daveperry] 03/11/2010 14:01

Good two way trading with all the sells being mopped up. Was todays update realy neccesary after the release on the 20th of October?

This has further to run IMHO.

[salpara111] 03/11/2010 11:52

The company is not overstretched financially so I dont fear for their viability but equally it is clear that the business is going to have to shrink over the next few years and that will be painfull for everyone from their staff to the investors.
I guess it goes on the back burner for me now.
I will keep it on my low level watch list and check in every now and then.

[3dharry] 03/11/2010 10:59

"Whilst recognising there are short term challenges for the Group, based on the
wider market opportunities and the continued delivery of the diversification
strategy, the Board continues to view the outlook for the Group in the longer
term with confidence. "

Short term,it looks bleak.

[envirovision] 03/11/2010 09:26

There is still a viable busines......

are you sure? I think that remains to be seen.

[salpara111] 03/11/2010 09:10

Well, as expected there will be significant restructuring charges along with goodwill writedowns.
Bottom line is that the next 2 years are going to be very difficult for EAGA.
I cant see what would provide a catalyst for the share price to turn the corner in the medium term.
There is still a viable busines here but it is going to be a while before investors see a return from it.

[luderitz] 03/11/2010 08:56

Down 13% on today's trading update so far, oops!

[honiton] 31/10/2010 07:27

rk23

The buy sell statistic is misleading. The trade data is unable to distinguish between the two and the statistic you quote is the "best guess".

On the understanding that for every buyer you have a seller, a better interpretation is:-

12.6m buys and 12.6m sells.

[rk23] 27/10/2010 16:41

9.7m sells v 2.9m buys today and price increases just under 10%! not sure I understand this.

[nicobellic] 27/10/2010 10:30

ntbb - not sure why you're so convinced they will bring in private sector contracts now when they have been so unable in the previous two years. The push into BPO started in 1997 not long after the float, but apart from a JV with Newcastle City Council (The Real Partnership) they haven't secured anything. They didn't even gain any contracts from the connaught fallout.

Do you realise just how much of their business is related to Warm Front? Warm Front income isn't limited to the fee for managing the scheme, or the low margin income from installing measures, they also trade the co2 saved through the scheme installations and split the profit with DECC. The later has always been incredibly profitable. However, with WF spending down by c50% over the next 12 months even this high margin income stream will be squeezed.

Eaga had an EBITDA of c£51mn. When you factor in the goodwill impairments, restructure costs, and reduced operating profits, this doesn't bode well for next year.

[ntbb] 27/10/2010 10:08

warm front goes and more green deal comes.

"This statement confirmed that the Warm Front Scheme would be phased out as part of the transition to "Green Deal".

[doji star] 27/10/2010 09:35

A big percentage of the revenue after warm front comes from Utilities and Private.

much better margins from those areas aswell.

anyway, quite a few big buy orders around this morning.

[ntbb] 27/10/2010 09:18

expect lot more contracts from energy supplier




"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."




"Following the announcement of the extension to the CERT programme in June 2010,
our Carbon Services segment continues to experience increasing demand for carbon
savings from energy suppliers. This demand is expected to result in higher
levels of delivery during the second half of the financial year. The Group has
already commenced delivery of a number of CESP projects on behalf of major power
generators and we expect the scale of our activities in this area to increase as
we move through the rest of the financial year."

[ntbb] 27/10/2010 09:07

eaga will be winning contracts from private sector

[jab118] 27/10/2010 09:05

Might do or might not, funny enough I did research this extensively last month, there was a few things that concerned me, now with the fall out my concerns was well justified. I hope for investors stuck in this it does happen to get back to £1 but I will be watching with interest.

[ntbb] 27/10/2010 08:58

drop is well over done, should head back upto £1

[miikke] 26/10/2010 17:28

Be careful, buying on the way down can be painful.

[simonparker5] 26/10/2010 17:14

What I don't get here is why the dramtic fall. OK I agree their turnover will be hit by the spending review but they are not like so many other companies out there who have large gearing. EAGA have net assets of about £100m according to the last accounts with a large proportion of this in cash. Their current market cap is £143m so not a lot of enterprise value priced in.
Energy efficiency and renewables are still grabbing headlines and the market for these have not gone away.
Some repositioning to be done but I don't think this will be fatal.
Holding from 60p and will add more on the wway down if I get the chance.

[salpara111] 26/10/2010 16:29

Hmm, I think I will just sit on my hands for a little while!
Must say, I didnt expect to see it drop so quickly.
I guess until we have a decent response from the company about what they expect to happen in real terms then we have nothing to go on.
As far as I am aware EAGA is basically a government outsourced business in that the majority of their revenue comes either directly or indirectly from the government.
For them to grow in the future, they need to refocus their business away from government programmes.

[miikke] 26/10/2010 14:44

Thought somebody might be interested in this extract from The Times article on the Green Rich List, published in the paper in December 2009- it talks about Drew who is the chief at Eaga read below:

List-13=: DREW JOHNSON Eaga £7m

"Eaga was established in Newcastle upon Tyne in 1990 to administer the Home Energy Efficiency Scheme, which provides government grants for heating and insulation improvements for low-income households. Drew Johnson joined the business a year later, having previously worked at British Coal. He joined the board in 1999 and 10 years later took over as chief executive.

The company became a partnership owned by the employees in 2000. Each year it insulates a quarter of a million homes and fits more than 50,000 energy-efficient central-heating systems across the country. Eaga floated on the stock market in 2007, valued at £453m. Johnson, 50, has a stake worth more than £7m."

Not sure what the stake is worth now or how many shares directors hold.

[0rient] 26/10/2010 12:45

Gulp!! overdone?? close to your 55p now Salpara

[salpara111] 25/10/2010 14:36

Difficult to guage what is now "fair value"
Undoubtedly the business will take a big hit and that will lead to substantial writedowns and exceptional charges as they have to restructure and shed staff.
I think I will wait and see if we get to the 55p level and then look at taking a stake.
Problem is that sentiment has now moved firmly against them and that may take some time to turn again.

[miikke] 24/10/2010 19:57

Have directors had any recent buys here?