Redt Energy Share Discussion Threads

[brucie5] 16/10/2018 10:19

Tsomev, presumably because the projects are not all in Europe? Australia is the second principal target market alongside the UK. Germany, up to now, has been a sideshow.

[ts0mev] 16/10/2018 10:05

Brucie5

understood why funding for the german deal is in EURO, but why would they use USD when talking finance in other projects?

Also, how many projects are involved?

Whilst big projects are welcome, sometimes multiple projects on a smaller scale can do more for the share price

[mikemine] 16/10/2018 09:56

Centrica, remember Cornwall, has issued a report on energy sustainability. For some reason I couldn't download the full report but here's a bullet point presentation.

hxxps://www.centricabusinesssolutions.com/sites/g/files/qehiga126/files/documents/Powering_Sustainability_Key_Takeaways_V1_0.pdf

hxxps://www.centricabusinesssolutions.com/sites/g/files/qehiga126/files/documents/Powering_Sustainability_Key_Takeaways_V1_0.pdf

Another article along the same lines. I mentioned a bandwagon recently and it looks like its moving faster. Should make life easier for Scott to get that finance he is after. Certainly the climate in which RED has to operate couldn't be better IMHO, if you'll excuse the pun.

[brucie5] 16/10/2018 09:36

From September 17th RNS: worthg re-reading?

"redT energy plc (AIM:RED), the energy storage solutions company, announces that it has received a conditional commitment letter from an energy infrastructure fund to invest, together with its partners, approximately €37m for 100% financing of the first project to be deployed of a total 700MWh portfolio of grid-scale energy storage projects in Germany (previously announced on 26 July 2018)."
This first project will use 800 redT units with a combined capacity of approximately 60MWh to supply Secondary Control Reserve and other grid services to the German and Austrian market.

This conditional commitment has been provided by the fund following a detailed review of the project data room documentation. All parties are committed to moving forward rapidly with this opportunity with financial close targeted by 31 December 2018.

As part of its strategy to channel infrastructure finance into energy storage projects, redT is working to secure and deploy finance across a $120m initial development portfolio of energy storage infrastructure projects in the near term, which includes projects within the Commercial & Industrial (C&I) sector, Grid-scale storage and large renewable generation plus storage. The Company is currently in active discussions with a number of leading infrastructure investors in this regard."
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Scott has repeatedly said that finding funding for such projects will not be a problem and I haven't seen anything to contradict this view. It seems to me that the stated intention to find 'strategic partners' is also a common sense priority, given the size of the opportunities. RED is just too small to do everything itself, and any radical increase in headcount will further test shareholders' patience, which is what he alluded to in his recent comment about the latest funding.

[spud] 16/10/2018 09:27

Opportunity knocks perhaps - https://www.bbc.co.uk/news/business-45873785spud

[brucie5] 16/10/2018 09:24

Yup.

"HSBC is leading a wave of British institutions from the City to the High Street which plan to pour hundreds of millions of pounds into cutting greenhouse gas emissions. The banking giant unveiled plans to invest around £250m in wind and solar power parks, alongside a swathe of green pledges from another 30 companies including Amazon, BT and John Lewis Partnership."


And you can't have green power without storage. It continues to be the untold story.

[mikemine] 16/10/2018 09:20

More on Green GB week.



Looks like the money is coming as Scott said.

[ts0mev] 16/10/2018 09:20

gerd212
yes, anything "subject to financing" would also have less impact on the share price
Financing is still an ongoing discussion and Scott should have known better.
That said, the reasons behind making such an announcement would be to raise awareness, i.e. attract investment to provide such finance.
I don't expect further news on this as I expect there are legal discussions involved regarding the conditions behind the proposed €37m.

[gerd212] 16/10/2018 08:55

I think we are in agreement that RedT prematurely announced the deal (AGM, Placing reasons?).

Once in the public domain, given the interest/sensitivities of renewables and alternative power supply solutions in Germany, any credible projects would IMO be more widely reported in the German media.

[ts0mev] 16/10/2018 08:30

Gerd212
My point being that if a deal is subject to financing then acknowledging the deal before financing is in place is usually where contract lawyers draw the line on when you can report this.

[ts0mev] 16/10/2018 08:21

2304

Specifically, who is the deal with?
If you name the other party in Germany and then identify similar announcements they have made in the press regarding deals they have signed.

If they have then let me know.

My point being there will be announcements in the German press when all named parties identify the benefits they are bringing.

Why would the German part make such claims and then add "subject to financing"?

[fieldhouse] 16/10/2018 08:19

Excellent post tsOmev

[murdo mcsponge] 16/10/2018 07:59

Thanks very much for that ts0mev. It must have taken a while to prepare, so many many thanks for taking the time to do that

[gerd212] 16/10/2018 07:58

"11) I’m curious the german “deal" was not reported in the german press."

why would this be news in the german press?

!

Really?

[brucie5] 16/10/2018 07:55

Thanks Tsomev. Great post.

[ts0mev] 15/10/2018 23:20

2293
greenmachine2
there are some opinions on here that I don't share. If that is the case I either accept the point of view or argue against their point until they can convince me otherwise.

The following was how I interpreted post 2277. I have identified multiple statements by numbering them.

re jimflint15 Oct '18 - 07:58 - 2277 of 2301

"
1a. RedT doesn’t have an independent chairman.
1b. Linkedin data shows Jeff Kenna has been with RedT for 29 years since May 1989."

LinkedIn is full of errors, but the two claims read together is misleading. RedT reports "Jeff has been a member of our Board of Directors since February 2006 and its Chairman since September 2012." If he has been involved with the company for such a long period then that starts with Camco, but so what? I've been with my company for over 21 years but that doesn't represent a red flag. Does it?

2. The 2017 Accounts reported that the Camco legacy business “continued to have a significant influence on the overall 2017 result particularly at revenue and gross profit level” Somehow this business generating €11m revenue just disappeared."

Not really. Read the announcement published 5 January 2018 concerning:

Update on Camco business activities

"3. The Redt stand alone revenue was just €889,000 in 2017. Scott McGregor pulled down a salary of €244,000 in 2017, when the net cash outflow from operating activities was €10.5m. The cash position of Camco and RedT was not separately disclosed."

Again, this is misleading.

Regarding the decision to divest the Camco business this is explained in 2017 Full Year results.

"4. The vast bulk of the assets are intangibles."
Yes, as reported in the 2017 Full year results:

Intangible assets recognised within the balance sheet relate exclusively to 'research and development (R&D)' as part of the acquisition of the Renewable Energy Dynamics Holdings Limited (REDH) business in September 2015. The R&D related to expenditure incurred within two main categories, Technical Expertise (Personnel Costs) and Other Directly Attributable Administration Expenses incurred by the REDH business since 2010 until the date of acquisition. At the date of acquisition, R&D was capitalised as an intangible asset.
Amortisation of the intangible assets will begin once the redT energy storage system becomes fully commercialised, with the recognition of revenue in the Income Statement from the sale of commercial systems. This criterion was not met in the year ended 31 December 2017. The situation will be reviewed in 2018 to confirm the amortisation status of the intangible asset, as well as to determine its effective useful economic life.

"5) There is €87m in negative retained earnings"

so what? It was already €79m in negative at the start of 2017.

"6) The Directors signed off on the going concern statement of May 17-18, but indicated it is not a guarantee as to the group’s ability to continue as a going concern."

Misleading as the report is referring to financial statements that consider the business is unlikely to cease and allowing deferment of some payments. The text stated:

Going Concern Basis

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chief Executives Report. The financial position of the Group, its cash flows and liquidity position are described in the Financial Review. In addition, Notes 20 and 21 to the financial statements include the Group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and its exposures to credit risk and liquidity risk.

The Group has sufficient financial resources together with long-term relationships with a number of customers and suppliers. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully.

The Directors are satisfied that the Group has adequate resources to continue to operate for the foreseeable future. For this reason, they consider it appropriate for the financial statements to be prepared on a going concern basis.

"7) The accounts for 2018 will make dire reading."

why?

"8) Renewable energy prices are falling."

yes, making renewable energy (like solar PV) attractive. RedT unleashes cheap energy by storing it and making it available even at times when renewable generation is not viable.

"9) RedT’s overhead has risen."

True, it's called expanding the business. The idea is to generate more revenues..

"10) Vanadium prices have gone through the roof."
V is used primarily in steel. Seriously, we'd be hearing about steel substitutes if this was the case.

"11) I’m curious the german “deal" was not reported in the german press."

why would this be news in the german press?


"12) RedT’s cash flow breakeven based no of units and prices is not apparent"

why would it be? Why would you disclose such information?

"13) RedT shows many red lights. As an investor I would be extremely cautious."

Not really IMO, but everyone is entitled to an opinion. That said, if RedT is considered such a high risk, why is jimflint here??

[dlg3] 15/10/2018 22:09

Developer and co-investor
Company NameCamco Solar
Dates EmployedMar 2010 – Mar 2011
Employment Duration1 yr 1 mo
LocationWiltshire
Camco Solar was a JV between Camco International Ltd and individual investors, seeking to build utility-scale PV generation under the UK's Feed-in tariff, until the tariff was cut for large scale installations.

[dlg3] 15/10/2018 21:58

Camco has been in bed with Siemens for years ask Chris Crookall-Fallon in bed with our dear Mr Kenna...

[brucie5] 15/10/2018 20:43

Jim, this is very odd. You have only ever posted on RED. Only ever since March. You were tremendously positive and now have turned tail. Effectively saying this is a scam, but without any evidence to show.

Casting unfounded rumours about is extremely disreputable. Unless you substantiate them, I will be placing you on filter as another malicious deramper. So I would ask you to show your working.

[dlg3] 15/10/2018 20:02

Camco UK, biogas, Camco international...... npt looking good Scotty and co..

[zero the hero] 15/10/2018 19:30

Jim you have been asked a civil question, if cannot or will not answer it then why should we take your comments as anything other than obvious deramping and as far as I am concerned you are a poor example of a human being misleading people.

[jimflint] 15/10/2018 19:19

Gs. If this implodes, as it is highly likely, there is no way you'd get out unscathed. My advice is take what you have, and go.

[gerd212] 15/10/2018 19:06

Could be a case of "2 birds with 1 stone", Help Bristol Homeless are also presenting.