Daldrup & Söhne AG is an onshore drilling and environmental services company, with vertically integrated competences in geothermal projects (from feasibility study, permitting and constructing to power supply contracting). It is seeking to create predictable revenue stream as an independent power producer.
Investment summary
Following a disappointing 2018, Daldrup & Söhne has embarked on a strategic realignment. Although the realignment will take some time to bear fruit, the outlook for FY19 appears more promising and the financial position of the company should improve after the recently announced disposals. For FY19 Daldrup & Söhne is expecting group revenue of €40m and a breakeven performance at the EBIT level. Based on consensus forecasts, the company is trading on an EV/Sales multiple for 2019 of 1.2x, towards the bottom end of the range for its peer group (average 3.3x).
