Plutus Powergen Share Discussion Threads

[isa2020] 18/7/2018 15:09

Multiple Revenue StreamsTriad, being retired STOR, unknown FFR, unknown PPA, unknown Capacity Markets, unknown Management Contract, £1.3M per year

[nw99] 17/7/2018 21:45

Thanks Savvy much appreciated all looking good when news breaks

[pbanus] 17/7/2018 17:16

perhaps worth clarifying that the vast majority of that £1M per SPV came from Triad and those payments will be phased out over the next three years. Funding takes as long as it needs to. Blue chip ideas get funded very quickly, the less attractive the lending proposition the longer it takes and on worse terms if it is possible at all.

[montynj] 17/7/2018 16:51

Thanks savvy...appreciated

[1savvyinvestor] 17/7/2018 15:36

We are now getting to the stage where nonsense is being talked about PPG. Each Rockpool site made over £1 million this winter. Debt remaining will be around £2 million. There is no £8 million debt sitting on the accounts. The original company that Plutus reversed into had debts and these are not owed by Plutus but are a tax efficient accounting device. Lilah obviously has it in big time for the company. Taking a long time to raise finance is not a surprise. My understanding is that substantive talks have been ongoing for 6 months. There is nothing unusual in this. I very much doubt anyone on these boards has any idea how complicated these deals can be. Everyone will want to make their bit of profit and to safeguard downside. I'm still cautiously optimistic.

[rhug1966] 17/7/2018 12:22

Not sure what 45% of a 20MW diesel site is worth. I also don't know the levels of debt incurred by the SPVs. Only seen accounts for Attune, which has £2m of debt to repay once sold. Expect around same level of debt or more from the other 5 SPVs to be repaid.

Will need to raise between £35m-40m for 3 gas sites to build. Also if the proceeds are going into the PPG accounts, there is a £8m negative balance in the accounts to be balanced.

I'm not convinced there will be enough money left to do anything with the proceeds.

[pbanus] 17/7/2018 12:11

@lilah they don't answer the phone or reply to emails, what does their working day consist of I wonder?

[lilah1] 17/7/2018 12:08

As I have stated no point just posting your grievances here, make it count by contacting management and demanding some explanations

[pbanus] 17/7/2018 12:08

the self imposed exile of the bod will end around 16th Sept when the annual report lands. Let's hope by that time they'll have the sense to dispose of Cantor (their Nomad) and their PR company - both of which have been useless.

[eentweedrie] 17/7/2018 11:54

yes, the silence from the company makes investment here a total gamble. will hold fire. bad form really

[pbanus] 17/7/2018 11:47

when the sites are sold it will provide some funding for gas sites, 2 or 3? But that means funding is delayed until the sale goes through, who knows when. Would imagine it would be pension funds looking to buy. Problem may now be that no-one wants to buy following the outcome of the capacity auctions. This would mean PPG keep the sites, buy remaining share from Rockpool, not really what we want as it keeps funding the directors with enough cash for their salaries, shareholders gain no income stream or capital growth. Better if an activist investor shows interest, buys out the directors and delivers a credible strategy.

[rhug1966] 17/7/2018 11:39

That has always been the plan for the Rockpool sites. See snippet from full results RNS.

Available for sale investments

Investments are designated as available-for-sale financial assets if they do not have fixed maturities and fixed or determinable payments, and management intends to hold them for the medium to long-term. Financial assets that are not classified into any of the other categories are also included in the available-for-sale category.

The details of investments classified as available for sale are as follows:

Attune Energy Limited
Flexible Generation Limited
Balance Power Limited
Equivalence Energy Limited
Precise Energy Limited
Valence Power Limited
Portman Power Limited
Reliance Generation Limited
Selectgen Limited

[pbanus] 17/7/2018 11:31

The alternative is that the Rockpool sites that have been built are sold and the company is wound up returning money to shareholders. What we don't want is any funds realised end up exclusively in the director's pockets via their exorbitant salaries as they promise and never deliver numerous more "projects".

[bmcb5] 17/7/2018 11:21

The problem with a takeover is, what are they actually buying? They own 44.5% of the Rockpool assets, which are inefficient and not exactly in high demand. Other than that, they have a management team, which hasn't really performed. How much would you pay for that?

[pbanus] 17/7/2018 11:12

Can't see a placing working given the very low market capitalisation, appetite for PPG shares and amount they would need to raise. Cost of one gas site is currently approx twice the value of the market capitalisation. It would be better if PPG were viewed as a takeover target so that investors could recover some of what they've lost by following the "vision" of the clowns running the company.

[lilah1] 17/7/2018 11:05

It feels like funding is off the cards for now. PPGs commercial terms / proposition, is not appealing enough to potential funders. Funding has failed and they need to look at a different way of packaging the opportunity to make it more attractive to funders, which I think will mean dilution for us investors. The commercial opportunity changed when the OFGEM ruling came out, PPG is perhaps now no longer as attractive investment as it was.

[pbanus] 17/7/2018 10:30

If the strategy had changed post the capacity auctions, why go to the investor conference in mid April encouraging more to become shareholders with the same set of slides??

[bmcb5] 17/7/2018 10:13

I'm still waiting for that strategy update
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codydotcom9 Feb '18 - 20:38 - 5119 of 5819
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I think you’re right there savvy. CM is still only just getting going, and it has many flaws. In truth, nobody knows where the long term mean will be. £18odd seemed disappointing in year 1 but would have been celebrated yesterday. This is a shock to the whole industry, I think. Word was that it would turn out low, but in a sweepstake at one major, the lowest guess was £13.

For PPG it must have been difficult in those final bidding rounds. They will be desperate to progress their projects but not at any price. Now they need to decide whether to press on regardless and hope for better in T-1s. If they build the plant without a cm agreement, they will only be able to get 1 year contracts and so will lose forward visibility of earnings. If they choose to wait a year, the Rockpool rollout is delayed and they run the risk of the same happening next year.

I’d like to see the board issue a strategy update in light of this

[lilah1] 17/7/2018 09:34

Everyone who has invested needs to be contacting the company and demanding some sort of explanation. Silence is defining and very worrying.

[lilah1] 17/7/2018 09:27

This scenario is appalling & with out doubt the worst investor relations screw up I have ever come across. Everything that has been said has not come to fruition, so everyone has lost confidence and left the party. There is obviously a huge lack of trust and ability of being able to deliver what they have outlined, see the ever falling share price. If you look at the management team, there are two of them who have never run a business before and so have no idea as to how to run a quoted PLC entity and the other two have little or no track record of success to date, though they seem to have a number of quoted shells that have not done anything. These people obviously have no idea how to run what should be a successful business. In the VC world you often get the following scenarios, a great management team & a not so good product and yet they will still deliver a success as they know what they are doing, a bad management team, with a total lack of experience with a good opportunity & product, invariably screw it up. This is what is happening to PPG, we have invested in a bad management team with a great product

[eentweedrie] 17/7/2018 07:47

when are f/y results due? bad form that not even a tu has been released