Report
Pierre-Yves Gauthier

End of coverage

End of coverage

SIGNIFICANT NEWS

Europlasma is going through a complete revamp of its management, its strategy and its finances. We stop coverage after seven years of paid-for research.

FACT

- Europlasma’s new owners and managers published its 2018 accounts in October with a €-53m loss after a €32m amortisation of various assets. 2018 shareholders’ funds stand at €-34m. Net debt stands at €28m.
- The management team is deemed to be completely renewed by November 2019,
- The AGM on the 2018 accounts and strategic review is to be held on 29//11/2019.


ANALYSIS

In our previous update, we commented on the phenomenal dilution to be expected from the “equity line” type funding designed to make Europlasma survive as a going concern.
The last count on the number of shares is c. 550m. We had allowed for a rough 640m by the close of this year. Historical shareholders have thus been reduced to fine dust, as expected.
The new strategy is definitely centred on Europlasma’s competences in the treatment of hazardous waste and the market opportunities offered by lower carbon intensity requirements.


IMPACT

We end coverage of Europlasma with this release.
Underlying
Europlasma

Europlasma SA. Europlasma SA is a France-based company that offers a range of solutions for hazardous waste treatment. The Company's technology allows converting toxic waste into reusable materials. The Company is composed of four entities, such as Europlasma Torch & Process, which provides engineering consulting for hazardous waste treatment, and sells and licenses its plasma torches and technology; Inertam SAS, which specializes in destruction and valorization of asbestos waste and operates ash melting units; CHO Power SAS, which supplies technological solutions for the efficient transformation of biomass and waste into electric energy and Europe Environnement, which offers ventilation and air cleaning systems for industrial applications.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

AlphaValue Corporate Services capitalise on the research and credit analysis expertise deployed by AlphaValue with major institutional investors at European level over the past nine years. The proprietary tools and processes enabling AlphaValue Corporate Services to establish a valuation and/or a credit risk assessment are identical to those used by AlphaValue to the benefit of its institutional clients. The only difference is the recognition that a company evaluation cannot be dissociated from the fact that the latter is paying for the service (AlphaValue Corporate Services), as opposed to the investor footing the bill (AlphaValue). AlphaValue’s research tools are characterised by the transparency of the valuation methodologies, their responsiveness to market data and by nine years’ experience of a universe numbering more than 450 European companies. Through its coverage and sector exhaustiveness, AlphaValue ranks alongside the major research houses in Europe and constitutes the only new entrant to the European space in the past decade. This significant presence is reflected in an unrivalled distribution capability via platforms commonly adopted by investors to access research: Factset, Bloomberg, Capital IQ and the numerous websites. AlphaValue is one the largest research contributors to these platforms, to the benefit of AlphaValue Corporate Services issuer clients.  The AlphaValue Corporate Services analysts are AlphaValue’s sector specialists. Their robust knowledge of the business models in their sectors enables the rapid generation of incisive, relevant research and advantageous interaction with the management teams.

Analysts
Pierre-Yves Gauthier

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