reports
- Robin Byde
- Robin Byde
- Liberum Research Team
- Liberum Research Team
- Liberum Research Team
- Liberum Research Team
- Robin Byde
Esken Ltd (ESKN LN) - Progress on strategic review
Esken will seek a managed disposal of its core Aviation and Renewables businesses to unlock value for shareholders. We calculate a SOTP/break-up valuation of 24p – plenty of potential upside assuming transactions to divest operations complete. Esken has also updated on trading to its February full year-end. Customer plant outages have continued to impact Renewables and EBITDA guidance has been cut slightly to c.£19m from c.£20m. The general outlook for the aviation sector and Aviation has improv...
- Liberum Research Team
- Liberum Research Team
- Gerald Khoo
LIBERUM: Esken* - More short-term pressure in Renewables
Guidance for the Renewables division has been cut again on further customer plant outages and weak waste wood market conditions. Management expects 2023E EBITDA of £19m for the division, down from the previous £20m guidance. The strategic review of the divisions continues. A sale process for Renewables is underway, and a sale of the Aviation business will now also be explored. There are execution risks, but we remain hopeful of value being crystallised.
- Liberum Research Team
- Liberum Research Team
- Gerald Khoo
LIBERUM: Esken* - Customer plant outages trigger cut in Renewables gui...
Management has cut current year guidance for the Renewables division. 2023E EBITDA is now seen at £20m (vs. £22m previously). Unplanned outages at biomass plant customers have cut demand for waste wood fuel and impacted gate fee income too. We have reduced our current year forecasts to reflect the revised guidance but make no material changes to later years. Our recommendation remains BUY with an unchanged SOTP-based target price of 15p.
- Liberum Research Team
- Liberum Research Team
- Robin Byde
Audio Note: Esken - New debt funding secured; strategic review trigger...
In this audio note, Zeus’ Robin Byde summarises the investment case for Esken. Esken has reported in-line H1 results. More importantly new debt funding has been secured to provide stability (albeit at a high coupon rate), and the Board has triggered a strategic review of the two operating divisions with a view to a transaction. Listen to the audio note below, and read the full research here.
- Robin Byde
Esken (ESKN LN) - New debt funding secured; strategic review triggered
Esken has reported in-line H1 results. More importantly new debt funding has been secured to provide stability (albeit at a high coupon rate), and the Board has triggered a strategic review of the two operating divisions with a view to a transaction. Esken has secured £50m of committed debt financing and £40m uncommitted. This is welcome and allows a clean-up of various legacy issues. Trading in H1 (core EBITDA £6.5m, -35% y-o-y) was in-line with our expectations, and our full year forecasts for...
- Robin Byde
Esken (ESKN LN) - FY22a: Steady improvement
Esken has reported full year results, these show steady improvement. The Renewables and Aviation divisions generated EBITDA of £19.5m (FY21a: £3.9m); in-line with our estimate. The Renewables division performed particularly strongly, reporting EBITDA of £20.3m; ahead of previous guidance. Aviation, as expected, remained subdued with reduced passenger activity at London Southend Airport. Divisional LBITDA was (£0.8m) and included a £3.5m one-off credit, but this was still a good improvement on (£...
- Andy Hanson
- Bob Liao
- Mike Allen
- Rachel Birkett
- Robin Byde
- Robin Savage
Zeus Top Picks for 2022: 2021 review and outlook for 2022
In early 2021 we set out our top stock picks for the year. From the date of that note to 31 December 2021, the average performance of our ten top picks was 32.0%, outperforming the AIM All-Share and FTSE All-Share by 29.4% and 21.5% respectively. In this note we discuss our 2021 picks’ performance, equities trends in 2021, and our outlook for 2022, before setting out our new top picks for 2022.
- Robin Byde
Esken (ESKN LN) - Visit to Tilbury green energy power plant
We have visited Esken’s wood biomass storage and processing operations at the Tilbury renewables energy power plant. Esken, through its Stobart Energy unit, is the leading supplier of wood biomass in the UK; sourcing, processing, and transporting fuel to energy plants such as Tilbury. Supply is typically under long-term and index-linked contracts. Stobart Energy continues to perform robustly and will generate £18m-£20m of EBITDA this year. In Aviation, Esken’s other division, London Southend Air...
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