Eneraqua Technologies Share Discussion Threads

[haroldthegreat] 23/5/2023 12:30

recover to what level ???

[igoe104] 23/5/2023 12:00

Looks like higher inflation costs have made clients put there higher margin contracts back. None of the contracts have been cancelled. So it should recover over time..

[pireric] 23/5/2023 10:05

I haven't dug into revenue recognition here. What's the policy? How much management discretion on the contract level - any percentage of completion policies? Possible they've overbooked profits and that's the reason for lower FY24 margins?

Eric

[adamb1978] 23/5/2023 09:53

Not a holder here but had them on the watch list.

Given they made c.19% PBT margins in Fy23, to be guiding to high-single digit margins in Fy24 assumes extremely low gross margins (they blame the lower margin on revenue mix, implying its a drop through from gross margins).

Anyone seeing it differently?

[masurenguy] 23/5/2023 09:51

This is really being hammered today. Now 35% below the IPO and 53% off the ATH only 8 weeks ago.

[tomps2] 23/5/2023 09:04

Eneraqua Technologies (ETP) FY23 overview - May 23

Eneraqua Technologies CEO, Mitesh Dhanak gives an overview of ETP’s results for the year ending 31 January 2023

Watch the video here: hxxps://www.piworld.co.uk/company-videos/eneraqua-technologies-etp-fy23-overview-may-23/

Or listen to the podcast here: hxxps://piworld.podbean.com/e/eneraqua-technologies-etp-fy23-overview-may-23/

[74tom] 23/5/2023 08:31

Broker note;

"Whilst we upgrade our revenue forecast by 13% to take account of a record order book (£130.4m at year end), the change in margin mix, as well as higher operating cost investment, leads us to reduce our adj. PBT forecast for FY24 by 42% from £12.1m to £7.0m."

Given the extremely questionable communication displayed both this morning and in the last set of results, a forward PE of 8-10 would seem appropriate here.

[masurenguy] 23/5/2023 08:21

Interesting - now 15% below the IPO circa 18 months ago. No position but onto my watchlist.

[a day in the life] 23/5/2023 08:19

Pretty poor response from management here trying to bluff their way through, and not spell out to everyone what the consequence of lower margins will be to profits

[bumpa33] 23/5/2023 08:15

Market really doesn’t like that one - offered in heavy size everywhere. No bid.

[a day in the life] 23/5/2023 08:11

Higher revenue, lower margin. Likely lower profits and definitely lower EPS.

Not as cheap looking as it was previously.

[igoe104] 23/5/2023 08:08

Market not happy, unbelievable. 🤷

[zho] 23/5/2023 07:53

“Record order book(3) of GBP130.4m of which 62% is currently anticipated to be delivered in FY24”

So FY 2024 revenues of £80.8m expected from current order book, up 46% on FY 2023, “with other contracts expected to be won and delivered within the period” (quote take from PI World results presentation).

[rimau1] 23/5/2023 07:43

Yes happy with that given the cautious TU. I was concerned the delayed orders may have a knock-on impact but it appears not. Exceeding in FY24 is simply a timing benefit from delayed orders moving from FY23 i think. Reassuring and cheap.

[igoe104] 23/5/2023 07:38

Whats not to like, also encouraging to see upgrades for the coming year.

[igoe104] 23/5/2023 07:25

Results overview..

[igoe104] 17/5/2023 09:43

Just registered, ill have to change my gym day to a Wednesday instead of Tuesday so I can listen to the presentation live. 👍

[tomps2] 17/5/2023 09:31

Eneraqua Technologies (ETP) Full Year 2023 results webinar

Tuesday, 23 May, 11:00am

ETP CEO, Mitesh Dhanak and CFO, Iain Richardson, will present preliminary results for the year ended 31 January 2023, followed by Q&A.

Register here: bit.ly/ETP_FY23_results_webinar

[rivaldo] 17/5/2023 09:09

Fair point rimau1. For me, given that ETP confirmed in the update they already have 99% revenue visibility of this year's revenue target they're in a pretty safe place even if there are deferrals, as they're bound to win further business over the course of the year to replenish any delayed business:

"The Order Book(3) has grown and is now at a record level, with GBP110m in contracted and secured work, of which 72% is due to be delivered in FYJan24. This proportion represents 99% of the FYJan24 revenue target (previously 85% as announced in October 2022). While early in the current financial year, the Board remains confident in the Group's outlook for the year ahead."

[rimau1] 17/5/2023 07:33

I’m not quite as bullish after the TU and i am keen to hear an update on client deferrals. This is what ETP said last month “ Full year revenues are lower than previously targeted which reflect changes, near the end of the period, to project commencements due to inflationary and cost pressures on the capital budgets of certain clients. No contracts have been cancelled, with delivery moving into future years” if this was a one-off timing event great but if its the beginning of a trend not so great. Lets hope those delays have now commenced or we at least have visibility on commencement.

[rivaldo] 17/5/2023 07:13

RNS - prelims will be next Tuesday May 23rd.

We already know results will be in line with around 25.3p EPS, plus a 1.2p dividend.

Order books are excellent and confidence is high with so much forward revenue visibility. Perhaps the upcoming results will bring in some buying on such a low P/E and our seller will depart the building.

[rivaldo] 10/5/2023 15:35

The price has drifted down to extremely cheap levels now on the face of it given a single figure P/E, extremely high revenue visibility etc.

There's been a seller out there for some time. Even now there are plenty of shares available online at less than the offer price. In a relatively illiquid stock and new IPO like this it doesn't take much to move the share price.

Meanwhile, Cenergist move forward:



Extract:

"Julie Keogh, head of consumer marketing at Cenergist, said: “Brand8 PR won the pitch due to the agency’s clear strategic approach and track record of successfully advising a range of businesses operating within the sustainability and property sectors. We have ambitious growth plans both within the UK and internationally and look forward to working with Brand8 PR to help us achieve our objectives.”

Founded in 2010, Brand8 PR’s clients include Norway-based global sustainable technology company TOMRA, housebuilder Avant Homes and urban logistics property developer and asset manager Chancerygate.

Brand8 PR managing director, Rob Smith, commented: “With the requirement for private and public sector organisations to achieve sustainability goals continuing to gather pace, Cenergist is ideally placed to advise within this rapidly expanding market. We are working alongside the company’s senior management team on communications activity which will raise awareness and create demand for the company.”

[aishah] 27/4/2023 14:09

3 Order Book defined as Contracted + Secured. Contracted = project contract issued and signed, with work started or ready to start. Secured = sum of a) tender process successful, awaiting project contract, and b) Directors' assumed win rate on Framework opportunities.

b) So not guaranteed work if framework opportunities do not come to pass.

Views?

[igoe104] 25/4/2023 15:42

These forecasts look encouraging for the industry...

SSEN forecasts 1,300% increase in heat pumps by 2030

Scottish and Southern Electricity Networks Distribution is forecasting almost 700,000 heat pumps in households across its networks, an increase of nearly 1,300%, by 2030. The distribution network operator’s latest annual Distribution Future Energy Scenarios reports, undertaken by Regen, show “unprecedented growth in low carbon and digital technologies” which it says demands “exponential growth in networks” to support the transition to net zero.

[rivaldo] 25/4/2023 14:29

Good to see you both here. I've been watching for a while for the price to drop to top up - there's been a seller around for a while. Unfortunately there also seem to be buyers around who are mopping up that stock (curse you!).

Interesting news flow - the CEO has been appointed to the steering group of the UK government’s new Energy Efficiency Taskforce, which aims to "devise a work plan to help reduce total UK energy demand by 15% from 2021 levels by 2030 across domestic and commercial buildings and industrial processes".

This should enable ETP to influence new policy/legislation going forward, and of course establish a load of new contacts:



I hadn't realised (or had forgotten) that ETP operate in Holland and Spain as well as the UK and India.