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Northland Capital Partners View on the City - Active Energy Group; Evgen Pharma; Polarean Imaging

Northland Capital Partners View on the City - Active Energy Group; Evgen Pharma; Polarean Imaging

SECTOR: RENEWABLE ENERGY; HEALTHCARE

ACTIVE ENERGY GROUP (LON:AEG)

SECTOR – RENEWABLE ENERGY

RATING – CORP*

MARKET CAP – £38.4m

CURRENT PRICE – 3.8p#

ANALYST – MIKE JEREMY

 

 

Year-end Dec

2015

2016

 

 

 

Revenue (US$m)

24.38

19.20

No forecasts provided

EBITDA (adj) (US$m)

(1.63)

1.27

Adj. pre-tax Profit (US$m)

(3.39)

(0.95)

Adj. EPS (US$c)

(0.65)

(0.13)

DPS ($c)

-

-

Net Cash/(Debt) (US$m)

(6.79)

(5.52)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

43.6

 

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad to Active Energy Group and therefore this information should be viewed as a Marketing Communication.

 

AEG receives Polish certification to commercialise its new SuperFuel product

 

NORTHLAND VIEW

  • On June 12th AEG CEE Sp. z o.o., AEG’s joint venture with Cobant Sp. z o.o. in Poland (announced Mar 13th) received confirmation that the Polish Government Burn Test Laboratory (IChPW) completed testing of its new ‘SuperFuel’ product. The product combines AEG’s CoalSwitch™ addititive, derived from sawmill and forestry waste, with reclaimed coal fines from coal waste dumps, located in Upper Silesia, Poland.
  • The results of tests, independently conducted at two laboratories, indicate a similar calorific value to coal (>23MJ/Kg) with significantly low sulphur content (<0.9%), low ash content and low SOx and NOx emissions, i.e. reduced emissions and pollution. This formal approval enables the move to commercial ‘Super Fuel’ production for use in coal-fired power stations, municipal heating and household heating systems in Poland. The blended product meets standards PN-EN 3030-5-2012 and PN0-ISO 10396:2001 and is certified (see http://www.cobant.pl/en/aktualnosci.html) to carry the Polish Government's Ecological Safety Symbol (Znak Bezpieczenstwa Ekologicznego), required in compliance with air quality legislation, for solid fuel sale in Poland without restriction.
  • The next step is to move to production and revenue generation.  AEG reports that the JV is in the final stages of price negotiation with customers in the Slask Region of Poland.

This validation for AEG is particularly applicable in Poland which has a 90% reliance on coal and lignite in energy generation and opens up significant commercial opportunities.

 

COMPANY DESCRIPTION

Active Energy Group (AEG) is an international, vertically-integrated forestry management and renewable resource energy provider.  The group combines management of forestry resources with the commercial development of a proprietary solution (CoalSwitch™) to the integration of wood-based (biomass) fuel into existing coal-fired thermal power plants. 

 

 

Evgen Pharma (LON:EVG)

SECTOR – HEALTHCARE

RATING – BUY*

MARKET CAP – £19.6m

CURRENT PRICE – 21p#

TARGET PRICE – 113p

ANALYST – BARRY GIBB

 

Year-end Dec

2015A

2016A

2017A

2018E†

 

Revenue (£m)

-

-

-

7.50

EBITDA (£m)

(3.64)

(3.49)

(4.49)

3.92

Adj. pre-tax Profit (£m)

(3.64)

(3.49)

(4.42)

3.90

Adj. EPS (p)

(4.19)

(2.81)

(3.34)

4.27

DPS (p)

-

-

-

-

Net Cash/(Debt) (£m)

3.91

3.24

(0.54)

3.95

P/E (x)

-

-

-

4.9

Dividend yield (%)

-

-

-

-

EV/EBITDA (x)

-

-

-

2.7

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Evgen Pharma and therefore this information should be viewed as a Marketing Communication.

 

Final FY2017 Results Highlight Progress with Phase II Trials

 

NORTHLAND VIEW

  • Financial performance for the year to March 2018 was in line with expectations, detailing a total comprehensive loss of £2.6m (2017: loss of £3.1m). Net cash outflow of £0.2m (2017: outflow of £3.3m (before short-term investment movements)), left year-end cash on deposits of £3.63m (31 March 2017: £3.86m). Further fundraising in December 2017 added £2.1m after expenses, suggesting the Company has sufficient cash resources to complete both the STEM and SAS Phase II trials currently underway. 
  • Highly encouraging interim data released from the ongoing STEM (SFX-01 in the Treatment and Evaluation of Metastatic Breast Cancer) Phase IIa clinical study was released this week. Eleven new sites opened for STEM trial in Spain, France, Belgium and UK with a total of 44 patients recruited to date.
  • Two new sites opened in UK in the ongoing SAS (SFX-01 after Subarachnoid Haemorrhage) Phase IIb clinical study with 65 patients recruited to date.
  • Additional patents were granted over SFX-01 including the first patent grant in Europe for SFX-01, relating to manufacturing and scale-up processes.

 

The growth of scientific data supporting the therapeutic potential of sulforaphane, together with the progress of Evgen’s two Phase II trials in stroke and breast cancer and the potential for differentiated product formats continues to build confidence. Patient recruitment remains on track to report final data for both around the end of 2018, which could highlight SFX-01’s considerable commercial opportunity.

                                                                           

COMPANY DESCRIPTION

Evgen Pharma is a clinical stage drug development company focused on the treatment of cancer and neurological conditions.

 

 

POLAREAN IMAGING (LON:POLX)

SECTOR – HEALTHCARE

RATING CORP*

MARKET CAP – £11m

CURRENT PRICE – 15p#

ANALYST – BARRY GIBB

 

Year-end Dec

2017A

 

 

 

 

Revenue ($m)

1.24

 

 

 

EBITDA ($m)

(3.55)

 

 

 

Adj. pre-tax Profit ($m)

(3.96)

 

 

 

Net Cash/(Debt) ($m)

(0.14)

No forecasts provided

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited provides acts as Nomad

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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