Eqtec Share Discussion Threads

[stevea171] 03/8/2023 09:07

He fails to mention (of course) the research notes' estimates are overblown year after year after year so are largely useless!

Just another propaganda tool he uses.

[mathieson84] 03/8/2023 08:16

Simply wall street uses the average of three research companies. One of them (zeus) cut their revenue forecast to come more in line with the other two.

Zeus research note 31st July


Longspur research note 31st July


Panmure gordon research note July

[cleverinvestor] 02/8/2023 00:52

Consensus revenue estimates fall by 24%
The consensus outlook for revenues in fiscal year 2023 has deteriorated.

2023 revenue forecast decreased from €16.6m to €12.6m.
Forecast losses increased from €0.00 to -€0.0002 per share.
Machinery industry in the United Kingdom expected to see average net income growth of 2.5% next year.
Consensus price target of UK£0.02 unchanged from last update.
Share price was steady at UK£0.0016 over the past week.

Source: Simply Wall Street Aug 1st

[adey1] 01/8/2023 23:03

I think you'll find he's already sold out a few weeks ago....stevea171 - 14 Jun 2023 - 10:30:49 - 4205 of 4478I have sold out pending clarification from these 'clowns' running the business. ST there is too much uncertainty both technical and financial. LT the future may be bright but will this company survive long enough to get there?

[mathieson84] 01/8/2023 16:07

Sigh. The new BOD have only been onboard from 2019. We had two very very challenging years where they had to change company direction very fast.
They are on AIM, that's what AIM are for... would you prefer they were private and none of us had the chance to be a part of the journey?
We as shareholders vote to allow new shares at every AGM.

You sound like one of those trolls on AIM. Please sell up if you aren't behind the BOD yeah? Why lose sleep.

[pa123] 01/8/2023 14:40

some big buying today, news about to drop i wonder??

[stevea171] 01/8/2023 14:09

Win/win? Win/lose more likely!

[stevea171] 01/8/2023 13:15

Post 4470/71. More propaganda!
Vander Linden hasn't a clue about what is a well managed company, what shareholders want, how to responsibly build a company or how to align company and shareholders interests.

EQT shares in issue: 11.5 billion with another 10% potentially to be issued in warrants and options. So 13 billion shares coming, increasing exponentially.

This company has zero appreciation of the value of having a tight share register with low/zero dilution. Shares are issued like confetti all the time with the LTIP just another wheeze for issuing even more shares to directors and staff.

There should be no more issue of shares and dilution of shareholders. Period.

Growth should be at a measured rate and funded mostly through its own resources.

These are the hallmarks of well run companies. eg

Halma (HLMA). A much respected international technology group with a 50 year track record of growth, now Ftse100 listed, and ultra low issuance of shares.

Anglo Asian Mining (AAZ). An AIM gold and copper miner which has grown organically without issuing a single new share since listing in 2006. Directors and shareholders interests are aligned.

[mathieson84] 01/8/2023 11:54

If you go to the 2022 results and add up the salary element, it is under €1m and if the 24% comes into play this year, will be less still. (€750K or €375k for 6months). There is quite often outstanding payments due to Directors at year end so I don't think they are paid the full amount until everything is decided and accounted for.

They will need a placing to get the shares for the (if they go ahead with) 24% of 'Salary'and LTIP. But if the share price is above 0.22p/0.25p then Eqtec the company and us as shareholders have saved the company money whilst rewarding the BOD. That's a win win.

Also as Jeff says, they never achieve 100% of the LTIP, if they did they would be massively over achieving then again, we all win

[mathieson84] 01/8/2023 11:48

There are some very outspoken shareholders who sound credible and 'fact-based' who are not--I have been shown their posts and I caution shareholders against following pied pipers who are more interested in retaining their own soap boxes than in EQTEC's success.  But please let's not use the standard, annual LTIP grant as a reason for unrest.

I fully intend to maximise my LTIP receipts, and you should want me to do so--that would mean that EQTEC was blowing away its revenue target, taking many orders and accelerating its growth, with the associated impacts on the share price.  We would both be winning, and that is our earnest and honest objective now and every day.

Best, jeff

[mathieson84] 01/8/2023 11:47

From user TB on telegram (not me)

.......

Reply from Jeff. There is a little sleight of hand on the bit about shares issued due to low cap, but I'm generally pretty happy with the reply.

Below:

Hi, Tom.  Thanks for your thoughtful note.  I am pleased you attended the AGM.  Did you attend in a group (as your note suggests you took the read of a number of people)?  That would be very interesting!

Regarding the LTIP, I fear there may again considerable misunderstanding and misinformation about this.  Please consider:  (1) We initiated this programme in 2021, as a replacement for arbitrary, unpredictable grants of warrants, etc., and we have granted no additional warrants to directors or employees since 2020; (2) the LTIP, which we reviewed and refined with PwC and our Nomad, is based on best practices applied at more mature companies to attract the right kind of talent and drive a culture of ownership, rather than employee-ship; (3) the amount of the grant is not arbitrary--it is based on remuneration figures set by contract with every employee--clearly, when the share price is low this has a disproportionate impact on the number of shares issued; (4) the numbers we announced are absolute maximum--to truly give out those share options, we would have to significantly outperform our targets for the year; in past years, we have not even hit target, never mind outperformed it; (5) the strike price should be a small premium--our advisors questioned why the relatively large premium and it was we Directors who insisted on sending the message that we should be well above the recent Placing price (last year's grant was also well above what advisors recommended); and (6) the timing was also not arbitrary--we could not do an April/May grant as we would have liked, as we needed to pass the AGM first, so we issued the grant afterward.

The implications of these points seem to me to be:  (1) shareholders should see this approach as allowing EQTEC to retain ONLY people willing to put their remuneration at risk to performance (and esp. in the case of Directors) and to have a portion of their remuneration payable in EQTEC shares--that should attract entrepreneurs, not desk-job employees; (2) shareholders should see this as a predictable, annual grant--no surprises with warrants or other vehicles practiced previously by EQTEC and often by other small companies; (3) shareholders should understand that we do not receive anywhere near full reward unless the company is receiving considerable reward--as I said in the AGM, we received zero of the performance-based component of the LTIP for 2022, as we were too far under target.

What we must announce to the Market is set--not by us, but by regulation; but the reality of remuneration at EQTEC is that we are not thriving unless the company thrives.  What I see people speculating about (and what the various AI engines publish) about our remuneration is laughable.  I am making much less than I was making before EQTEC or could make in another company....but why would I?  The future is bright for EQTEC and the process of building a company around our superior technology is a mission worth pursuing.

I understand that shareholders do not have perfect information, nor is it possible for us to try to share that, but shareholders must disentangle two issues:  trust in the management and EQTEC's remuneration model.  The latter is standardised, mathematical and best practice (meaning more mature and professionalised than most other companies practice); the former is a matter of shareholder sentiment.  If shareholders truly believe the EQTEC business strategy is misguided, that the Company is on the wrong track and that we Directors are plundering the Company's coffers for personal gain, then I would expect them to push very hard to have us exited quickly. But for what it's worth, we work seven days a week, through our own family holidays and with strong capability and dedication to EQTEC's success.

[m4rtinu] 01/8/2023 11:30

Whether assumptions are correct or not, the sharing of ideas allows us to see the basis of calculations. I am grateful to both Andy and Steve for sharing their thoughts. My view is that Eqtec Chiefs are getting very well paid. I am also uncomfortable with DP/Altair relationship.

However, I'm invested so want the company to succeed. It's still a race between delivery and revenue versus dilution and cash consumption, as far as i see it.

[stevea171] 01/8/2023 10:45

It does nothing of the sort. Another assumption, all going just one way. Because nothing has been announced so no 24% shares for salary has been agreed.

Unless or until we hear otherwise the 4 exec directors costs are EU0.7 million for H1.
H2 tbd.

Your spread sheet and you got it wrong. So it's not facts is it? It's misleading assumptions.

[mathieson84] 01/8/2023 10:31

Rose tinted glasses...

I collected the data and number crunched.

That's facts not opinions

[mathieson84] 01/8/2023 10:30

I made the spreadsheet and uploaded it to the image sharing site.

Yes and that RNS says that 24% = €282k
That makes the total €1,175,000. It says renumeration and not salary tho which I find strange as that seems too low for renumeration yet too high for salary.

[stevea171] 01/8/2023 09:14

Aandi Mathieson.
Not so. What authority has the web site you are using ibb.co? Zero.

21/3/23. EQT's own statement on this subject:
Settlement of Director remuneration in new Ordinary Shares
The Company is proposing that 24% of the Executive Directors' remuneration payable in 2023 can be satisfied at the Company's election by the issue of new Ordinary Shares at the Placing Price, at the discretion of the Company's remuneration committee.
Subject to terms being agreed, a further announcement, together with any fair and reasonable opinion as required, would be made at such time as the Company entered into any such agreement.

No announcement so no agreement. Therefore EU0.7 million for H1/23.

You really need to take off your rose tinted glasses and reign in your one sided propaganda that you spout on LSE concerning this company.
How many of the past 4 cash raises did you expect ahead of times?
None.
Just ramp, ramp, ramp is all you do.

[mathieson84] 01/8/2023 08:56

See my posts on LSE for a breakdown of costs. Cost to EQT for 4 exec BOD salaries this year likely 754k for the full year

[dofmeister] 31/7/2023 20:44

I think Andy has explained, above....

[stevea171] 31/7/2023 20:40

Dofmeister. Yes, thanks, they have had 4 cash raises in the 12 months, March 22 to March 23, not 3. So many in fact that I forgot the last one! What a total fiasco!

To complete the picture:
21 March 2023. Proposed Equity Issue to raise approximately £3.5 million

To be added to 2022 cash raises:
In March the company agreed a new loan facility of £10 million (€11.3 million) with Riverfort Global Opportunities PCC Limited and YA II PN.

Placing._The Company in July raised £3.7 million (€4.2 million) before expenses_

In December, another loan facility of £2 million (€2.3 million) was also entered into with Altair Group, EQTEC’s largest shareholder.

There are bits of revenue in H1, as in previous years incl the UoL which mostly we don't have visibility of ahead of published accounts.

Mathieson.
No announcement has been made of part payment of Directors remuneration in shares has been agreed for H1 so the full EU0.7 million acrued (half of FY22).

Refi of Italia MDC was penciled in for 'Summer'. Likewise commencement of operations of the Italia MDC was supposed to be 'Autumn' last year. Forecasts by this company have a track record of being meaningless ....

So the question still remains of when the next cash raise will hit?

[mathieson84] 31/7/2023 20:11

Balance at the start of the year = 1.7m euros

4x BOD Salary for first 6 months is only 367k euros (total, not each) as they exchanged 25% of their salary for shares.

Sources of income - £1.7m from Altair loan, There was £2m from the placing for MDC's, R&D + working capital requirements, 1m euro grant from the French government, ongoing revenue from Italy MDC, technology sales and engineering fees from Northfork and Greece, 750k euro from Idex for France MDC plus potentially other up front engineering fees from France and possibly other locations too.
The first part of the 15m euros French MDC revenue from Idex is due in Q4 also so we only have 2 months to wait before guaranteed revenue from France.

The £1.7m Altai loan is interest only
The £4.5m riverfort loan is payable over 19 payments and first payment started 31st june. Total interest and loan repaymebts = about £269k a month

[dofmeister] 31/7/2023 17:11

Stevea

"For EQT around July time has been placing time for the past 3 years (plse see below).
2023. Will it be August or September ahead of H1 results?

Cash at beginning of this year was just EU1.7 million.
Cash: The cash balance of the Group as at 31 December 2022 stood at €1.7 million (31 December 2021: €6.4 million).

EU0.7 million has been spent on the 4 exec directors remuneration in H1, leaving just EU1.0 million for everything else.
Just one other item: What were the costs for the 6 months support of the MDC in Italy?

13 July 2022 16:50 Proposed Placing, Primary Bid Offer & Subscription

28 May 2021 07:00 Placing & Subscription to raise up to £15 million

09 July 2020 07:00 Proposed Placing & Primary Bid Offer to raise £10m"

Pay attention Stevea, they raised 3.5m euro earlier this year, re-scheduled the debt and have had the benefit of further revenue....

[mathieson84] 31/7/2023 16:18

Check my maths on LSE. CEO David Palumbo 2023 salary cash figure only £80k after tax

[mathieson84] 31/7/2023 13:44

All the feedstocks have already been tested and fed into the feedstock library.

This test uses an existing feedstock from the library but tests it with steam. Steam.was only installed and commissioned in 2022. It is needed to increase hydrogen and carbon content to produce higher yields of Renewable gas.

As to the directors renumeration, a large portion almost 40% is in shares at a higher price than todays share price

[yump] 31/7/2023 12:09

So, after all this time, they haven’t already tested all the anticipated combinations of feedstock that might be input ?

Isn’t that something you do near the start ? You don’t need clairvoyance to know there will be impurities in the mix.

Or have they already done it and this is just proving in front of potential clients ?

I’ve lost track if there is even one process working anywhere, even with carefully filtered feedstock.