Report
Andy Smith

CORPORATE SPONSORED MATERIAL: Aggregated Micro Power* (AMPH LN, BUY, T/P 136p) - Initiation | The rise of a challenger utility

Aggregated Micro Power Holdings (AMPH) is emerging as a challenger utility presenting a unique investment opportunity. It is essentially an asset play offering exposure to a diverse stream of energy related revenues taking advantage of the fundamental changes in the UK energy sector as it strives to meet its legally binding CO2 emission targets. Revenues are forecast to grow from £19.7m in FY17 to £70m by FY21 and for EBITDA to reach £4m by FY21. In addition to earnings growth it is also creating value in the form of off-balance sheet ‘deferred carry’ interest. Combined, the earnings profile and deferred carry interest support our price target of 136p. We initiate with a BUY.
Underlying
Aggregated Micro Power Holdings

Aggregated Micro Power is engaged as a suppliers of wood fuels under Forest Fuels brand. Co. operates through three business divisions: Forest Fuels, which sells wood chip and wood pellet to end customers throughout the U.K. in the form of fuel only contracts, heat contracts and/or fuels plus operation and maintenance; Project Development, which develops, manages and facilitates financing of distributed energy projects focusing on biomass heat and biomass CHP for a range of applications and customers; and Investments, which aim to grow funds under management.

Provider
Whitman Howard
Whitman Howard

Whitman Howard is an independent institutional stockbroking and investment banking business focused on servicing the needs of our corporate clients and institutional investor base.

The company began trading in 2011 with a team of highly experienced market professionals and the goal of building a leading capital markets business in an entrepreneurial environment.

Analysts
Andy Smith

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