Hydro Intl Share Discussion Threads

[cheap] 02/4/2007 10:11

Just to underline how few people have responded to the news - I happen to know that most of the limited buying this morning was just one person.

[rivaldo] 02/4/2007 09:21

Indeed. If this contract had been included HYD would probably have been able to say they had a record order book rather than enquiries.

Consistent buying today - in the sense that 6 out of 7 deals have been for 1k shares as that's the on-line limit! I'm sure there would have been a bigger reaction if announced this morning. Never mind, plenty more to come imo, and this way we get the long-term investors rather than the T3 speculators.

[cheap] 02/4/2007 08:27

Seems likely that knowledge of this impending £2.3M deal encouraged the optimistic tone of the statement accompanying the results. The strength of last year's UK results came largely from stormwater - this substantial new order comes from the wastewater sector, very much vindicating HYD's gradual diversifiction over the last few years.

[weatherman] 31/3/2007 13:35

Sell your oil shares now if this is true ?

[stegrego] 31/3/2007 10:56

Wow - missed that news altogether - bloody stupid time to release it - always do a 7am to get peoples attention.

[rivaldo] 30/3/2007 15:04

Gac, my 11.5p forecast isn't exactly a million miles away from your 11.2p - let's just say we're in the same ballpark!

Most companies are traded by reference to their forward P/E. Projecting the same growth rate forward for HYD gives 13.5p EPS, or a P/E of just 11 - without stripping out the cash pile. Plenty of upside from there.

The Vexamus acquisition was a good 20 months ago now, and HYD have £2.7m of cash (probably nearer £3m now) to play with. An earnings-enhancing acquisition would be just the ticket now and would probably take the P/E down to 7 or 8.

And as you say the AGM's not far away now.

[gac100] 30/3/2007 00:42

Ooops - That should have been I've pencilled in an eps of 11.2p (and there was me having a bit of a dig at others for mathematical carelessnes just a few days ago)...and I guess its also pretty meaningless me just throwing in an eps without saying how I arrived at it. So:-

.......................2006...........2005
Profit after tax.......£1.262m....... £0.970m
Exceptional items......n/a...........+£0.121m
Goodwill amortisation.+£0.097m.......+£0.056m
TOTAL..................£1.359m........£1.147m
Diluted weighted
average no. of shares..14.232587m.....14.102794m
Normalised EPS.........9.55p..........8.13p

EPS growth 2005-2006 = 17.5%. Assuming the same rate of growth 2006-2007 gives a forecast EPS of 11.22p for 2007, which at the current share price (148.50p) gives a forward p/e of 13.2.

Rivaldo posted a slightly more generous EPS forecast and made the point that HYD also has £2.2m net funds. Needless to say I'd be delighted if HYD tops both our estimates.

News that buoyant enquiries are turning into firm orders (either directly or suggestively via the upcoming Peel Hunt forecast) would be very welcome.

[gac100] 29/3/2007 18:54

Yes, the new PH note and forecasts should be very interesting. Together with the agm (mid-May?), its not too long before we should have a clearer picture of how trading is going this year. For the moment I've pencilled in an eps of 11.6

[rivaldo] 28/3/2007 21:01

I've been informed that Peel Hunt have issued a short form note to their clients, but that their analyst is away - when he returns there'll be a full note out with new forecasts in the next couple of months.

Something to look forward to.

[gac100] 23/3/2007 15:55

HYD have now released an amendment:

"This announcement replaces the Director's Holding in Company and Additional
Listing announcement released on the RNS system on the RNS no. 5928T on Friday
23 March at 11.13 a.m.. An amendment has been made to reflect the following: Mr
Williams now holds shares in the Company representing 0.32% rather than 0.28% of the issued share capital."

I do like an FD who can do sums ;-)

... ok, can forgive a slip up once, especially on a minor point.

[gac100] 23/3/2007 11:55

Announced today I see that Chris Williams, HYDs Europe MD, has added to his 20,000 shareholding by excercising options:

10,000 ordinary shares at 24.5 pence each
15,000 ordinary shares at 33.0 pence each

I don't get this though:

"Following the exercise of these options Mr Williams holds a total of 45,000
shares in the Company, representing 0.28% of the issued share capital."

I had the issued share capital down as 14,112,260 before today, making 14,137,260 after the 25,000 are issued. On neither figure does 45,000 represent 0.28%.

Have I missed something or has our new FD miscalculated? Please tell me its me!

[rivaldo] 23/3/2007 09:22

Just to back up the above thoughts about HYD's influence in the UK water industry, HYD are mentioned today in this article as one of the three "major exhibitors" at IWEX in early May:

[rivaldo] 22/3/2007 22:16

Funnily enough I've just come across this British mission trip to Singapore and Australia to talk about water recycling and reuse, and HYD are one of the seven organisations represented - along with Thames Water:



Alan, no-one can definitively tell you HYD will or won't get work from the project. But a look at HYD's web site and the stormwater and wastewater pages will tell you there's plenty of possibilities, and there can't be many that many companies around with the necessary products and expertise - and also the contacts at the top echelons of Britain's water industry, which HYD have in spades.

[alan russell] 22/3/2007 21:34

Is there any reason to believe that HYD will get any work from this project?

[picnic] 22/3/2007 20:45

Thanks for the updates Rivaldo. That Thames project looks very interesting. With Britains history of big infrastructure projects I would bet that "cost at least £2 b" would be tweaked up a tad or two before completion!
We have Thames water where I live, so I might be tempted to increase my HYD
holding as a "hedge".
Cheers , picnic.

[rivaldo] 22/3/2007 19:11

Interesting to know when work will start on the above £2bln project.

News from HYD:


"Hydro Showcases Wastewater and Stormwater Solutions at IWEX - Stand W35 Hall 3
20-Mar-2007

Hydro International's range of wastewater and stormwater solutions will be demonstrated on Stand W35/Hall 3 at IWEX 2007. Chris Williams, Hydro International's European managing director will also deliver a paper on Rainwater Harvesting and recycling of water at the conference.

Exhibits include a working model of Hydro's highly regarded DynaSand® continuous sand filter system, which removes suspended solids and phosphates, converts ammonia and denitrifies waste water, this technology has also been used extensively for drinking water treatment. In addition, a working demonstration of Hydro's Grit King® grit and sediment separator will show why it is now installed at many sewage treatment plants around the UK.

Other exhibits demonstrating the breadth of Hydro`s solutions within the framework of the water management cycle include the Stormcell® and Stormbloc® modular storage and infiltration solutions for stormwater management. To supplement these, Hydro's StormBank™ rainwater harvesting system will be featured and the Save The Rain™ campaign aimed at persuading Government to include rainwater recycling in the Building Regulations for new build. (www.savetherain.info).

Hydro's comprehensive range of solutions consists of long-proven products together with newer and innovative systems. Hydro's integrated approach to dealing with stormwater extends from rainwater harvesting through flow control and SUDS systems to wastewater treatment."