Currency in GBP
Last close As at 09/06/2023
GBP0.00
▲ 0.04 (21.05%)
Market capitalisation
GBP7m
Research: Oil & Gas
Coro Energy has announced that in light of the unprecedented market changes, its board has initiated a material cost-reduction programme. As a result, James Menzies, the company’s CEO, saw his employment terminated with immediate effect. The board also mutually agreed with Nick Cooper that he will leave the company with immediate effect. Following these changes, the board will consist of James Parsons as nonexecutive chairman and Andrew Dennan, Marco Fumagalli and Fiona MacAulay as non-executive directors. As result of recent developments and Coro’s current situation, we are suspending our valuation.
Written by
Carlos Gomes
Coro Energy |
Cost reductions result in board restructuring |
Directorate changes |
Oil & gas |
3 April 2020 |
Share price performance Business description
Analyst
Coro Energy is a research client of Edison Investment Research Limited |
Coro Energy has announced that in light of the unprecedented market changes, its board has initiated a material cost-reduction programme. As a result, James Menzies, the company’s CEO, saw his employment terminated with immediate effect. The board also mutually agreed with Nick Cooper that he will leave the company with immediate effect. Following these changes, the board will consist of James Parsons as non-executive chairman and Andrew Dennan, Marco Fumagalli and Fiona MacAulay as non-executive directors. As result of recent developments and Coro’s current situation, we are suspending our valuation.
Year-end |
Revenue |
EBITDA |
PBT* |
Cash from operations ($m) |
Net (debt)/ |
Capex |
12/18** |
0.0 |
(3.5) |
(3.5) |
(12.7) |
9.4 |
(1.0) |
12/19e |
0.0 |
(5.5) |
(8.1) |
(8.2) |
(12.6) |
(12.7) |
12/20e |
0.0 |
(4.6) |
(4.6) |
(4.6) |
(69.1) |
(51.9) |
Note: *PBT normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **FY18 actuals reported in euros; FY18 not yet restated in US$ and consequently FY18/19 estimated figures include some Edison assumptions.
Coro’s board is implementing a material cost-reduction exercise to position the company for the new environment the oil and gas industry is facing. The board offered the executive directors different options including taking an unpaid sabbatical; receiving three months’ notice (subject to conditions), payable in new ordinary shares in the company, for terminating their employment; and/or stepping into an NED role. James Menzies did not accept any of the options and the board terminated his employment with immediate effect without payment (excluding notice provisions in his service agreement). Share options previously awarded to Mr Menzies have also lapsed.
At 31 March 2020, Coro had unaudited cash of c $4.5m, according to the company. The board estimates that cost reductions, including a reduction in G&A on an annualised basis by c $2.3m, will result in sufficient working capital to meet its requirements until April 2021, when the second annual coupon payment becomes due on Tranche A of the company’s €22.5m Eurobond.
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Research: Industrials
The coronavirus outbreak has led to widespread temporary closures across the UK building materials supply chain and Epwin has taken similar steps. We have brought our FY19 estimates in line with management’s update comments. Clearly, there will be downward pressure on trading for a currently indeterminate period and, it is important to note that estimates beyond FY19 are yet to be adjusted for COVID-19 impacts.
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