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
Daldrup & Söhne (D&S) continues to implement its corporate restructuring programme and in July it sold 49% of Geysir Europe to IKAV. H119 results showed a small decline in profitability versus H18 (but an improvement versus FY18) and D&S believes the transition will continue into FY20. The executive board continues to guide for a total group output of €40m and an operational break-even for FY19. Consensus remains more optimistic than guidance and based on consensus forecasts, D&S is trading on an EV/sales multiple for FY19 of 1.2x, compared with a peer group average of 4.1x.
