Update: Bentley funding key

The next few months are critical to the future of Xcite. $135m of bonds mature at the end of June 2016 and there is no visibility yet that they can be refinanced, or at what cost. At the same time, Xcite has done an excellent job of driving down costs for its Bentley development, both through cost deflation and optimisation of the project. With improving fiscal terms, the Bentley project is potentially more robust than ever before and is resilient across a wide range of commodity prices. However, with depressed equity and debt markets and cautious industry sentiment, securing development fundi...

Outlook: Critical year ahead

2015 is a critical year for Xcite and its shareholders. Having seen its Bentley development delayed, the company is taking an innovative approach, engaging early with major service contractors to put in place a development group that would get it through FID as well as reduce execution risk to both cost and schedule. With the consortium complete, we examine how potential terms could affect returns, concluding there is strong upside potential for all parties, Xcite and contractors alike, with an aligned development strategy. However, we caution that investors need to be patient, as a sequential...

Institutional Comment: Daily comment

Accsys Technologies - Upgrading guidance for the full year

Accsys Technologies had a strong H125 with a return to revenue growth and gross margin exceeding its target of 30%. Adjusted EBITDA improved on the back of better than expected volume growth from the plant in Arnhem. The company has simplified and de-risked the group through the successful start-up of the plant in the United States and the decision to discontinue the project in Hull. After the good start of the year, Accsys increased guidance for the full year, with underlying profitability expected to improve in H2 as Accoya USA continues to ramp up.

Topps Tiles - Market outperformance again in FY24

Topps Tiles (TPT) has reported a good profit outturn for FY24, ahead of our prior expectations, which is encouraging in the context of the challenging external environment. Management believes the overall revenue decline of 5% means TPT has once again outperformed the market that it estimates to have declined by 10–15%. TPT has made good early progress on the key growth areas under its recently announced Mission 365 strategy, which are expected to drive the bulk of the growth in the medium term. With respect to the outlook for FY25, TPT has returned to positive revenue growth in the first eigh...

Nabaltec - Resilience and margin expansion

Nabaltec recorded revenue growth across the group of 1.5% y-o-y to €158.2m at 9M24, with sales volumes increasing 7.9% y-o-y despite selling prices falling. Functional Fillers revenue grew by 3.8% y-o-y to €114.1m due to strong demand for its viscosity optimised and fine precipitated aluminium hydroxides. Speciality Alumina revenue, however, decreased 4.1% y-o-y, partially offsetting group revenue growth due to a lack of impetus for reactive alumina in the wider market. Group EBIT grew 28.2% y-o-y to €16.8m (10.3% margin), due to higher capacity utilisation and lower costs of materials, energy...