OBTALA LIMITED (LON:OBT)
SECTOR – FOOD RETAILERS & WHOLESALERS
RATING – CORP*
MARKET CAP – £21.9m
CURRENT PRICE – 6.7p#
ANALYST – BARRY GIBB
Year-end Jun
2016A
2017A
Revenue (US$m)
0.6
8.4
No forecasts provided
EBITDA (£m)
-
-
Adj. pre-tax Profit (US$m)
(5.25)
(9.93)
Adj. EPS (US$cents)
(1.84)
3.46
DPS (p)
-
-
Net Cash/(Debt) (USm)
3.40
2.09
P/E (x)
-
2.5
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Obtala Limited and therefore this information should be viewed as a Marketing Communication. £=1.29US$
Quarterly update
NORTHLAND VIEW
§ {C}{C}Obtala provided a quarterly update on operations for the three months ended 30 September 2018.
§ {C}{C}The Group's revenue run rate was slightly slower than the previous quarter, although year to date the figure has now surpassed that of the full year 2017. August is typically a slow month in West Africa with a large number of public holidays, but September proved to be a record month for the number of containers of sawn timber shipped from Gabon. With shipments made in late September expected to be recognised in Q4, revenue for the current year are expected to exceed US$10m for the first time.
§ {C}{C}With 95% of sawn timber production coming from Gabon, output totaled 3,900m3 vs 3,800m3 in Q2 and 3,600m3 in Q1. Q3 also marked the handover of the new veneer factory, from the installation team to the newly hired production team. While an upgraded logistics team in Libreville produced an immediate impact by shipping a total of 90 containers, almost 30% more than in the previous quarter.
§ {C}{C}The trading business order book remained strong at more than US$10m. The Group’s internal trading fund (ITF), which pays 11.5% to lenders and is secured against receivables, inventory and invoiced timber that has been invoiced and received from third party suppliers, continued to attract additional capital during the quarter which now stands at US$4m.
The Board announced with its H118 results that a strategic review of its loss-making business units in Mozambique and Tanzania is now underway. All recommendations to be considered, although it has stated it is unlikely to accept any proposal that involves material losses from any business line being sustained in the next financial year. A final decision is expected to be detailed to shareholders on or before the 2018E full year results.
COMPANY DESCRIPTION
Obtala Limited is an African forestry and agricultural producer, supplier and trading operation to worldwide customers
SECTOR – MINING
RATING – CORP*
MARKET CAP – £4.1m
CURRENT PRICE – 0.26p#
ANALYST – BARRY GIBB
DR RYAN D. LONG
Year-end Jun
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
0.0
(0.3)
Adj. pre-tax Profit (£m)
0.0
(0.3)
Adj. EPS (p)
0.0
(0.0)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.3
(0.1)
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Altona Energy and therefore this information should be viewed as a Marketing Communication.
Proposed capital re-organisation and resolution for name change
NORTHLAND VIEW
§ {C}{C}Altona announced that it is proposing to seek shareholder approval for a capital re-organisation, increase in the authority of the directors to allot equity securities and change of name to ‘Sustainable Energy Group plc’ (with TIDM ‘ticker’ to become ‘SEG’). A General Meeting is scheduled for Wednesday, 17 October 2018 at 11.30 a.m. to consider and, if thought fit, approve the Proposals.
§ {C}{C}Given a current nominal share value of £0.0001, the Board has proposed an equity consolidation so that every one thousand of the Existing Ordinary Shares in issue, will become one New Ordinary Share having a nominal value of £0.1. Following this consolidation there will be 1,558,956 New Ordinary Shares in issue which, subject to their Admission, are expected to commence trading on 18th October.
§ {C}{C}The Directors are also seeking increased authority to allot equity securities up to a nominal value of £112,000, and to disapply statutory pre-emption rights to the allotments so authorised.
§ {C}{C}The Company has been assessing the use of a pyrolysis technology to convert waste to electricity under a potential joint venture project in Spain and also the potential use of this technology with its own coal assets in South Australia. Negotiations are ongoing and the Board continues to review various potential opportunities for this technology. The company did note, however, that in order to fully exploit this technology, further funding will be required, the timing and quantum of which has not yet been decided.
The Company has stated the Directors are unanimously in favour of these proposed resolutions, and believes the changes are in the best interests of the Company.
COMPANY DESCRIPTION
Altona Energy is seeking to develop use of pyrolysis technology for sale in China and Australia.