Eneraqua Technologies Share Discussion Threads

[rivaldo] 02/11/2022 10:20

Been away on family hols for nigh on three weeks, so it's encouraging to see the new contract wins.

This year's revenues are fully covered, and next year's are already up to an extraordinary 85%!

Finncap have retained their 425p price target, and Singer's is 396p.

Good spot jadowshati2, does indeed look like the B2C offering. ETP have a number of avenues for large scaling up open to them, and we should continue to get good news flow.

[jadowshati2] 31/10/2022 09:29

Control flow being installed in homes, beginning of the b2c offering?

[tomps2] 25/10/2022 11:15

Eneraqua Technologies (ETP) interim results presentation - October 2022

Eneraqua Technologies, a specialist provider of energy and water efficiency solutions, present the interim results for the six months ended 31 July 2022, by Mitesh Dhanak, CEO & Iain Richardson, CFO.

They see a 92% uplift in H1 revenue and full revenue cover for FYJan23, whilst their investment in people and infrastructure underpins their growth strategy.

Video:

Podcast:

[jadowshati2] 24/10/2022 12:17

Nice order win

[rivaldo] 12/10/2022 09:06

And a nice review this morning on Investors Champion:



"Eneraqua: terrific results and an upgrade

Eneraqua Technologies (AIM:ETP), the provider of energy and water efficiency solutions, announced excellent interim results bringing a nice upgrade from its broker.

For the six months ending 31 July 2022 revenue nearly doubled to £24.2m while adjusted EBITDA was 23% higher at £3.98m, reflecting the continued investment in the team.

The forward purchasing of key items on a number of projects brought an operating cash outflow of £2.2m and free cash outflow of £2.7m. The Group closed the period with gross cash of £6.5m and net debt of £0.2m.

With seemingly huge potential in social housing and private sector clients in the UK to provide heat pump solutions, we are a little puzzled by the need to push into agritech, with a first contract secured to provide an irrigation solution to the State of Uttarakhand in India. Hopefully it’s relatively easy to deliver.

In response to the excellent numbers and positive outlook, the house broker upgraded forecasts for the January 2024 financial year to revenue of £80.1m (in line with management guidance), adjusted pre-tax profit of £12.2m (margin 15%) and earnings of 28.8p. For the current year to January 2023, forecasts are for revenue of £61.3m, adjusted profits of £10.6m and earnings of 25.7p, resulting in a modest 10x earnings multiple."

[rivaldo] 12/10/2022 07:38

Good to see ETP highlighted in the Stock Watch column in today's market report in the Daily Mail:



"Eneraqua Technologies surged 13.9 per cent, or 32p, to 262p following strong results and an upbeat outlook.

Revenue at the group, which advises clients on how to be more energy efficient, almost doubled to £24.2million in the six months to July 31 compared with a year earlier.

It raised its revenue target for 2024 by 14 per cent to £80.1million, having secured enough orders to cover 2023.

It plans to roll out a product to cut families’ energy and water bills, saving households around £360 a year."

[tillondee] 11/10/2022 13:20

I was impressed with the B2C offering, the water neutrality opportunities looks interesting as well. With the target price being a significant increase I've decided to invest as well.

[jadowshati2] 11/10/2022 12:44

The B2C offering seems exciting, given the market of developers and consumer households. Will be interested to see how it goes next year. Assuming the installations are subcontracted and the design side of the projects is lower than the main projects, hopefully good GM

[rivaldo] 11/10/2022 12:00

Singer Capital Markets have initiated coverage today with a Buy and a 396p target price.....

They summarise:

"Strong and highly visible earnings growth

Eneraqua is a specialist in designing solutions that maximise energy and water efficiency. We expect PBT growth of 79%/21% in FY23/FY24 driven by significant requirements to improve energy efficiency in the UK built environment against a backdrop of rising energy costs.

Growth is highly visible, with our FY23 revenue forecasts 100% covered by orders, FY24 already 72% covered (post a revenue guidance upgrade in today’s interims) and a strong pipeline beyond this. An attractive margin (16%-17% OM) is supported by its unique IP and technical expertise in terms of both design engineering and its ability to arrange funding for its social housing clients. The balance sheet is strong, with a net cash position expected across the forecast period, and there are ambitions to execute bolt-on M&A. On a Jan. ‘24 EV/EBITDA rating of only 4.5x, we believe the shares are attractively valued and initiate with a Buy rec and 396p TP."

"Significant upside to 396p target price

We value Eneraqua against a basket of ESG driven Support Services stocks and Engineering Consultants. These trade on an average EV/EBITDA rating of 9x. Applying this to Eneraqua’s Jan. ’24 earnings implies a target price of 396p and a P/E multiple of 15x. This represents 73% upside to the current share price."

[jadowshati2] 11/10/2022 11:37

I've been a long time lurker, but never really been heavily allocated in aim enough to be worth a post! This market has really felt like a good opportunity to get involved

[rivaldo] 11/10/2022 11:00

Interesting - jadowshati2 is another debut poster on ADVFN making his first ever post on this thread, immediately after willsiam1 does exactly the same. And willsiam1's debut post here was replicated on the LSE bb by a poster with a third, different name also making his debut post there.

Welcome to all three of you!

[jadowshati2] 11/10/2022 10:21

Would be interested to hear the reasoning behind the shares being not good quality? I have a small position due to the illiquidity

[rivaldo] 11/10/2022 09:51

A reminder that the ETP investor webinar is free to register for and takes place at 12.00 today:

[willsam1] 11/10/2022 09:50

Rimau1 what makes you say that? Have you invested?

[rimau1] 11/10/2022 09:39

Thats a bizarre debut post Willsam!

[willsam1] 11/10/2022 09:00

Are the shares cheap because they are not good quality? The results look decent so far.

[rivaldo] 11/10/2022 08:14

Finncap have updated - they've maintained their 425p price target and their 25.7p EPS forecast for this year, and have now increased their forecast to Jan'24 to 28.8p EPS.

That's a P/E at 262p of just 9.1.

[rivaldo] 11/10/2022 07:18

Indeed, extremely good.

The H1 results are fine in themselves, but now we know:

- the order book already provides full revenue cover for this year
- the coming year to Jan'24 has been upgraded by 14%, materially ahead of expectations
- the newly increased revenue target to Jan'24 is already covered a whopping 72% by the order book

And the launch of the water efficiency product into B2C is imminent - before the end of 2022.

The figures for the saving using ETP's flow control are amazing - each house could save £360 per annum following installation.

The initial contract win in India promises much, with ETP in talk with other states.

And ETP are soundly financed so perhaps there'll also be further acquisitions.

With 25.9p EPS forecast to Jan'23 ETP are on a single-digit P/E. Far too low, especially considering today's upgrades to next year.

[tomps2] 11/10/2022 07:13

Eneraqua #ETP H123 overview
Rev +92% £23.2m
aEBITDA £3.98m
aEPS 6.48p
H2 weighted. Order book provides rev cover for FY23 forecasts.
FY24 rev targets up 14% to £80.1m

Video: www.piworld.co.uk/company-videos/eneraqua-technologies-etp-interim-results-overview-october-2022/

Webinar today at 12 noon, register here bit.ly/ETP_FY22_results

[rimau1] 11/10/2022 07:09

All looks good here, revenue upgraded for next year and looks suitably covered. As we have previously discussed the B2C launch of the water neutrality technology looks like an excellent new revenue stream.

[tomps2] 07/10/2022 15:21

Next Tuesday £ETP release interim results, we have a webinar with management at 12 noon, register here to attend bit.ly/ETP_H123_webinar

[rivaldo] 29/9/2022 07:29

Good to see Singer appointed today as joint brokers.

Agreed 74tom, looks like someone had a desperate need to sell - and ETP has a particularly small free float! Nice recovery in the afternoon.

Just 3 days ago Cenergist won a place as one of 13 suppliers on a £100m framework for Carbon and Energy Infrastructure Upgrade Services, running through to 2028:

[edwardt] 28/9/2022 21:41

Well done - neatly joined you but chickened out!

[rivaldo] 15/9/2022 09:28

Finncap retain their 425p target. They forecast 25.9p EPS for the year ending soon in Jan'23, and believe ETP have a "compelling" valuation with order books fully secured for this year and already at 79% of forecast revenues for the next year.