Would be surprised if a repeat of a tip in the week was causing this rise. Might be wrong I accept but would be surprising |
It’s tipped in The Week magazine who have picked up the IC tip which is likely the reason for the rise I expect it to fall again next week like it always does |
What do they say? Couldn't see it in IC although there was something on the 30th SeptemberThanks in advance |
IC tip
Give it a couple of days |
What is happening !! Seems a big piece of news may be coming ...fingers crossed !! |
Solid buying so far today. Somebody know something I wonder. |
Why don't the warrant share holders dump all their millions shares at once and get it over with !!!!! |
Seems we are still very news dependent. No surprise there. Most small caps struggling to get their message across. Hopefully enough sunshine in the webinar to get a mention in the weekend press or other outlets. If not it may drift and become newsflow linked. Good thing there is a lot of news to flow.Was thinking about why a new CFO. From the RNS seems he helped grow a startup from 15 million to 88. Just the kind of copilot Harvey is looking for.Ducks lining up. I am a buyer on any weakness here. End December for news on how much extra we are due up to Sept 24 from the EM sale. Gravy. |
And as per usual straight back down |
I haven’t sold or bought anything recently |
You sold at 5.9 and are now struggling to buy back at 6.3? |
On the runway??
Really |
Just rewatched. What is not to like. Wall to wall positive outlook across the business and serious contracts to be signed in Q4 and FY 25. Also into the FE Hospital and commercial space. It may have been slow burn but we are now on the runway. |
Hoping for a strong rise after the presentation today and as the market refkects on prospects |
 "Pipeline growth highlights commercial progress"
eEnergy’s interims confirm a period of strong commercial progress, underpinning confidence in revenue growth prospects for H2’24 and into FY’25. As previously reported, H1 trading was subdued but the sales pipeline is showing genuine momentum (+25% in H1) with >£6m of contracted orders scheduled for the remainder of the year. We note an element of caution over the timing of project delivery, given the strong Q4 pipeline, but this should not detract from the underlying progress that is increasingly evident. Following the disposal of the Energy Management business, eEnergy has a strong balance sheet and, in our view, is well placed to play a leading role in the Net Zero transition.
H2 has started well, with a quarterly revenue record in Q3 (£9.2m). Revenue expectations for the remainder of FY’24 are underpinned by a contracted order book of £7.6m at the end of September, £6.4m of which is expected to convert to revenue in the current year. The Board has maintained its revenue guidance of between £25m and £26m. We trim our forecast to the bottom of this range (previously £25.5m) and apply an element of caution to margins and cash generation, noting some risk over timing. As a reminder, our forecasts do not include the potential benefit of deferred consideration from the EM disposal, which management estimates at between £8m and £10m over the next two years.
Link to note: |
A smart energy firm on a deep discount.
Improving market conditions underpinned record third-quarter revenue and demand is still rising.
Published on September 30, 2024
by Simon Thompson
*Record third-quarter revenue
*Strong forward order book
*Market conditions improving
Technology-enabled energy services provider eEnergy (EAAS: 5.65p) is on course to deliver record quarterly revenue of £9.3mn in the third quarter, or 55 per cent more than in the whole of the first half.
The company helps organisations achieve their net zero goals by designing, funding and implementing energy-efficient projects (solar, electric vehicle charging and energy-efficient lighting). As previously reported, the business had a slow start to the year and experienced disruption due to the disposal and separation of its energy management (EM) division. Trading was also hampered by a weak balance sheet and exacerbated by weak market conditions. Lower energy prices and higher costs of finance led to lengthened customer decision-making cycles, culminating in a delay in contract signings.
However, the disposal has strengthened the group’s financial position no end. eEnergy ended the six-month period with net cash of £6mn and entered a new £40mn debt facility with NatWest to provide off-balance-sheet funding for public sector customers. It has lowered the cost of capital, delivers an attractive return on the retained project interests and improves eEnergy’s competitive position when tendering for multi-site contracts.
Importantly, the directors note that the market started to strengthen towards the end of the first half and the strong momentum is being maintained. Underpinned by an order book of £7.6mn, of which £6.4mn is for delivery in the final quarter of 2024, the board is maintaining full-year revenue guidance of £25mn-£26mn assuming there is no weather-related disruption to the installation schedule. On this basis, analysts forecast a second-half cash profit of around £3mn on revenue of £19mn, which would wipe out the first-half underlying cash loss of £2mn on revenue of £6mn.
Positive tailwinds.
Importantly, the new government is preparing to drive net zero more actively as one of its levers for growth. eEnergy’s directors believe that the public sector will lead this activity, and they are already seeing government-backed clients signing up to more flexible financing arrangements, which can allow them to adopt the group’s products and services with no upfront capital expenditure. Furthermore, customers looking for security and stability of energy supply are driving demand for onsite generation, an opportunity greater than management previously anticipated. In particular, the solar business is set for significant expansion due to its decreasing levelised cost of energy (a measure of the cost of energy generated by a system over its lifetime).
The potential for eEnergy to scale up its business continues to be under-rated. The company’s market capitalisation of £21.8mn is backed up by net cash of £6mn and contingent deferred consideration from the EM disposal could add £8mn to £10mn (capped at £20mn) to the cash position by the end of 2025. Assuming annual revenue ramps up 20 per cent or so next year – not an unreasonable assumption given the improvement in market conditions – the operational business could generate annual cash profit of £3.2mn, pre-tax profit of £2.2mn and earnings per share (EPS) of 0.4p in 2025. Effectively, it is in the price for £6mn (1.5p).
So, although eEnergy’s share price is below the 7.15p suggested entry level in my 2024 Bargain Shares Portfolio, the growth profile, asset backing and deep discount to 13p a share sum-of the-parts valuation point to significant share price upside. BUY. |
Reading the RNS on the new CFO I had no idea Siemens were a finance provider as well as Nat West. |
Thanks Harvey. Delivered update in September. Very much true to the hints dropped in the webinar. Disappointing no share price response but hopefully more details tomorrow and some insightful questions will tease out information on which the share price can build. On top of all that we may have an indication of how much extra the spinoff will bring in as the first qualifying period was to end September 24. Hoping tomorrow brings a more realistic market reaction to a story whose page has turned. |
But aren't these results exactly as they were described in the last trading update? A record quarter for revenue and positive momentum going into the second half of the year? |
Like I said the market knew and these results are nothing special
No new contracts as hinted recently
All hot air |
Sorry you could correct
I was going off the IC share article |
Ok perhaps I am mistaken. Could you tell me when the deferred consideration is calculated and payable.I was relying on this from the previous RNS"Additional contingent consideration, estimated by the Company to be in the range of £8 million to £10 million, subject to the Energy Management Division achieving strong growth in line with its business plan, linked to net cash generated by the Energy Management Division from completion to 30 September 2025 (the "Earnout Period")" |
Nope and already sells |
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