Strong Finals – Growth Strategy Delivering

Hydro International’s growth strategy is working. 2015 revenues grew 18% to £37.9m, gross profits increased 21% to £17.6m, adjusted operating profits grew 23% to £2.3m and adjusted PBT grew 29% to £2.4m. Adjusted EPS grew 39% to 10.29p, helped by a reduction in the tax rate. Year end net cash of £2.3m was unchanged despite the £1m spent on acquisitions and the dividend was increased by 6% from 3.6p to 3.8p.

Acquisition of M2R

Hydro has announced that it has acquired the intellectual property and technology assets of M2 Renewables (M2R) from Sail Capital Partners, for an initial payment of $1m in cash, plus additional deferred consideration of 10% of sales incorporating the acquired intellectual property across the first five years. This additional consideration is capped at $10.0 million. The acquisition will be funded from existing cash and debt facilities.

Interims – Investment strategy delivering

In the last few years Hydro has made very significant revenue investments, to broaden the product range, expand its geographical reach, enter adjacent market segments and increase service revenues. Interim results showed good progress with this strategy, with revenues up 32% to £17.4m and adjusted profits up nine fold to £0.80m, ahead of our expectations.

£2m Qatar contract win

Hydro International has announced that it has been selected to provide stormwater management products as part of the major Doha Industrial Area Development project in Qatar, which is expected to be completed by mid-2016.

AGM Update

Hydro is a leading provider of innovative products for water treatment for municipal customers and storm water control and treatment for the construction industry. The main markets are the UK and US and the company is investing to grow its international footprint.

Growth strategy delivering

Given the profit headwinds from FX, the lower revenues on the Thames contracts and the significant investment in growth initiatives, we think the 19% increase in PBT in 2014 is highly creditable and confirms that the company’s strategy is delivering. Hydro has a wealth of growth opportunities and is continuing to invest heavily to realise these, which will create a larger business that is more diversified and more profitable. Given the good prospects and low valuation, the shares are very attrac

LIBERUM: Yü Group* - Yet more upgrades

Invinity Energy Systems - New Sale Could Build Familiarity

A sale of four VS3 Invinity flow batteries shows continued positive momentum for the company. This deal goes further as we see it building familiarity for the company’s storage technology with key members of the workforce in the North American electricity industry.

Invinity Energy Systems - Further US Sale

A further sale in the USA shows that Invinity is seeing growing momentum in the country. With the Inflation Reduction Act now creating storage specific tax credits for the coming decade while the Bipartisan Infrastructure Law offers significant incremental support for long duration energy storage, we see this market as a key opportunity for the company.

Initial Equity Trading Comments - 15 May 2023

LIBERUM: Eneraqua Technologies* - Initiation - Saving money... and the planet

ITM Power (ITM LN) - Trading update

ITM has released a trading update, refining guidance for the full year to April 2023, and reporting progress on the company’s ongoing project to refocus its business on manufacturing delivery and scale up

SDI Group - FY 2023 trading update in line with downgrades to FY 2024

SDI has issued a trading update for the year ending 30 April. Whilst revenues are expected to be c.£69m, up 39% on FY 2022 and some £2.5m or 4% higher than our forecast, higher investment into sales & marketing pegs back adjusted PBT to around £11.8m (no change to FC £11.9m est). Product mix changes in FY 2024 (lower higher-margin Atik sales, offset by higher lower-margin new business sales), coupled with sustained investment in opex will impact our forecasts for FY 2024. We leave revenues uncha

Morning Note – 11 May 2023

Hybridan Research: Sector Review: Critical minerals for UK - mining and battery recycling: 09-05-2023

Virgin mining: Energy security and decarbonisation are driving the race in the sourcing of critical minerals from the natural world. This has contributed to the revival of exploration activities in the US, Europe and to a lesser degree the UK. For example, the global identified lithium resources increased from 40m tonnes in 2015 (the Paris Agreement year) to 97m tonnes in 2023, at a CAGR of 12%, according to the U.S. Geological Survey data. For example, there was no identified lithium resources

Morning Note – 5 June 2023

Powerhouse Energy - Northern Ireland Site Identified

Powerhouse has today announced an agreement with Noage Energy to establish a project in Northern Ireland using Powerhouse technology to convert waste to energy. Noage have identified a potential site and work is due to commence to negotiate access and to obtain the necessary permits for construction and operations. This follows the joint venture with Hydrogen Utopia International to develop a waste to hydrogen project in the Republic of Ireland announced earlier this year and displays a growing

Itaconix - FY22 results shows strong revenue increase

The FY22 results posted a significant increase in revenue and decent reduction in losses. Growth was strongest in the cleaning segment, with a marked increase in demand across all geographies, but particularly from North American customers. Results were in line at the revenue level, with the adjusted EBITDA loss circa $100k lower than our $1.3m forecast for FY22. Year-end cash of $0.6m has since been boosted by the $12.7m February placing, resulting in much stronger finances. No changes to FY23

Webinar: “The Impact of US IRA on Clean Energy Companies”

The US Inflation Reduction Act will have sweeping impacts on the energy industry and its participants. We’ve invited four companies from the Active Net Zero Universe to share how they see the industry evolving, helping investors identify the major risks and opportunities. Companies presenting are EQTEC (EQT LN), Foresight Group (FSG LN), Invinity Energy Systems (IES LN) and Velocys (VLS LN). The Active Net Zero Universe uses the same selection methodology as the Solactive Active Net Zero Global

SP Angel Spec Sits: (YUG) Trading Update - Increasing Forecasts Again

YUG's Management and Board provided a trading update with respect to its half year results for the period ending 30 June 2023.  Revenue, profitability, and cash flow generation have demonstrated continued strong growth for H1 2023 and are now expected to be ‘substantially' ahead of current market expectations for the full year 2023.

Velocys - Feedstock Highlights FT Benefits

A new report on feedstock pressures for HEFA derived sustainable aviation fuel (SAF) highlights the relative attractiveness of Fischer Tropsch based SAF and especially the negative emission fuel Velocys has developed. With the US SAF Grand Challenge, REFuel EU and the UK’s Jet Zero policies all pushing airlines down a SAF based decarbonisation route, we see the Velocys solution as gaining attractiveness as one that can meet the long-term needs of the industry without putting pressure on feedstoc