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 https://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.
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