Currency in GBP
Last close As at 30/03/2023
GBP0.01
▲ −0.13 (−8.61%)
Market capitalisation
GBP21m
Research: Industrials
Quadrise has signed a framework agreement with MSC Shipmanagement that covers proof-of-concept (POC) tests and subsequent letters of no objection (LONO) trials using both bioMSAR and MSAR from Quadrise on one or more commercial container vessels. These trials are essential preliminaries to Quadrise potentially supplying its proprietary fuels to MSC for use in its fleet, which is the largest container ship fleet in the world, thus helping MSC reduce its greenhouse gas emissions.
Quadrise Fuels International |
Moving forward with MSC Shipmanagement |
Framework agreement |
Alternative energy |
28 July 2022 |
Share price performance Business description
Analyst
Quadrise Fuels International is a research client of Edison Investment Research Limited |
Quadrise has signed a framework agreement with MSC Shipmanagement that covers proof-of-concept (POC) tests and subsequent letters of no objection (LONO) trials using both bioMSAR and MSAR from Quadrise on one or more commercial container vessels. These trials are essential preliminaries to Quadrise potentially supplying its proprietary fuels to MSC for use in its fleet, which is the largest container ship fleet in the world, thus helping MSC reduce its greenhouse gas emissions.
Year end |
Revenue (£m) |
EBITDA (£m) |
PBT* |
EPS* |
DPS |
P/E |
06/18 |
0.0 |
(3.3) |
(3.5) |
(0.37) |
0.00 |
N/A |
06/19 |
0.0 |
(2.8) |
(3.0) |
(0.32) |
0.00 |
N/A |
06//20 |
0.0 |
(3.0) |
(3.3) |
(0.32) |
0.00 |
N/A |
06/21 |
0.0 |
(2.8) |
(2.8) |
(0.23) |
0.00 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The POC tests will take place on the Seago Istanbul, which was previously used by Maersk to carry out successful demonstrations of MSAR and is now owned by MSC. The POC tests will start by the end of calendar year 2022 provided the vessel is available. The tests will require 1,000 tonnes each of bioMSAR and MSAR.
Assuming the results from the POC tests are positive, MSC will then conduct lengthier trials (4,000 hours of operation) to provide commercial operating experience, potentially culminating in obtaining LONOs from the engine manufacturer, Wärtsilä. Management expects the LONO trial will take around six to eight months to complete. The tests will require 25,000 tonnes each of bioMSAR and MSAR, which will be produced by Quadrise and sold to MSC.
Provided that the fuel trialling process reached the interim stage of the LONO trial successfully, which would be around four months into the trial, Quadrise and MSC will negotiate a commercial agreement regarding the supply of bioMSAR and/or MSAR for use by MSC. The two companies also intend to trial Quadrise’s ‘Blend-on-Board’ solution in which the fuel is manufactured on-board a suitable MSC vessel using a miniaturised processing unit.
|
|
Research: Healthcare
Ergomed’s H122 trading update re-emphasised its robust business model and resilient growth despite the challenging macro environment. Revenues grew 24.8% y-o-y to £69.9m, underpinned by strong and sustained demand for both the clinical research services (CRO) and pharmacovigilance (PV) segments. In February 2022, Ergomed acquired ADAMAS, which added supplementary quality assurance services to its portfolio, and we expect this to further enhance group margins in the forthcoming quarters. Importantly, the order book continues to be strong, recording 18.7% growth since end-December 2021, indicating robust contractual revenues into H222. With a £12m cash balance and £80m in debt facilities, the balance sheet remains robust. Management expects FY22 revenue and adjusted EBITDA to be ‘in line with market expectations’. We maintain our estimates and valuation for the company.
Get access to the very latest content matched to your personal investment style.