Last close As at 05/08/2026
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Market capitalisation
GBP21m
Research: Industrials
Quadrise successfully completed a pilot trial at a customer site in Morocco during calendar H220 and launched its biofuel variant, bioMSAR which produces 20–30% lower carbon dioxide (CO2) emissions as well as lower nitrogen oxide and particulates. The company is currently preparing for larger scale trials in Morocco, a pilot trial in Utah and on-vessel trials with MSC Shipmanagement, having signed a joint development agreement with the shipping company this January. Management notes that these activities could potentially result in the first commercial shipments of MSAR by the end of calendar year (CY) 2021.
Written by
Quadrise Fuels International |
Progressing trials in three sectors |
Interims |
Alternative energy |
30 March 2021 |
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Business description
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Quadrise Fuels International is a research client of Edison Investment Research Limited |
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Quadrise successfully completed a pilot trial at a customer site in Morocco during calendar H220 and launched its biofuel variant, bioMSAR which produces 20–30% lower carbon dioxide (CO2) emissions as well as lower nitrogen oxide and particulates. The company is currently preparing for larger scale trials in Morocco, a pilot trial in Utah and on-vessel trials with MSC Shipmanagement, having signed a joint development agreement with the shipping company this January. Management notes that these activities could potentially result in the first commercial shipments of MSAR by the end of calendar year (CY) 2021.
Year end |
Revenue (£m) |
EBITDA |
PBT* |
EPS* |
DPS |
P/E |
06/17 |
0.1 |
(3.9) |
(4.1) |
(0.45) |
0.00 |
N/A |
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 |
(3.1) |
(3.4) |
(0.32) |
0.00 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Three trial programmes underway
Quadrise and the customer in Morocco are preparing for a larger-scale industrial trial in CY H121 and a commercial trial in early CY H221, potentially resulting in the first commercial shipments of MSAR to the customer early in CY22. Assuming the ongoing scoping and feasibility activities go well, Quadrise and MSC Shipmanagement will start one or more on-vessel trials by early CY22. If successful, the trials may potentially be followed by commercial roll-out of MSAR across MSC’s global fleet starting in CY Q222. Quadrise is waiting for evaluation samples prior to carrying out an on-site trial in Utah with Greenfield Energy for upstream oil and gas applications. If this trial is successful, it could lead to the development of commercial MSAR plants processing up to 10,000 barrels of oil per day at sites owned or operated by Greenfield in Utah.
Extending cash runway to sustainability
Quadrise is still pre-revenue. Stripping out share option and exceptional charges, operating losses narrowed by £0.4m y-o-y in FY H121 (calendar H220) to £1.4m, reflecting lower production and development and administrative costs. Free cash outflow decreased by £0.4m to £1.3m. Post-period end, the group completed a placing and oversubscribed open offer, raising £7.0m (gross) at 2.7p/share. Management expects it now has the cash resources to progress the ongoing trial programmes to commercial revenues and positive sustainable cash flows by July 2022.
Valuation: Modest adoption transformational
Based on data from the company, our scenario analysis calculates that even modest adoption of MSAR would generate material profits. A single refinery producing MSAR equivalent to 1.9Mtpa HFO under a licensing model would generate $15.9m in annual EBITDA (see our November outlook note for details).
Exhibit 1: Financial summary
£000s |
2016 |
2017 |
2018 |
2019 |
2020 |
||
30-June |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
|||||||
Revenue |
|
|
2 |
126 |
9 |
22 |
0 |
EBITDA |
|
|
(3,989) |
(3,858) |
(3,284) |
(2,780) |
(3,072) |
Operating Profit (before amort. and except.) |
|
|
(4,137) |
(4,069) |
(3,514) |
(3,010) |
(3,244) |
Amortisation of acquired intangibles |
0 |
0 |
0 |
0 |
0 |
||
Exceptionals |
0 |
0 |
0 |
0 |
(1,133) |
||
Share-based payments |
(802) |
(242) |
(53) |
(154) |
(474) |
||
Reported operating profit |
(4,939) |
(4,311) |
(3,567) |
(3,164) |
(4,851) |
||
Net Interest |
33 |
9 |
11 |
(3) |
(139) |
||
Profit Before Tax (norm) |
|
|
(4,104) |
(4,060) |
(3,503) |
(3,013) |
(3,383) |
Profit Before Tax (reported) |
|
|
(4,906) |
(4,302) |
(3,556) |
(3,167) |
(4,990) |
Reported tax |
149 |
213 |
294 |
184 |
147 |
||
Profit After Tax (norm) |
(3,955) |
(3,847) |
(3,209) |
(2,829) |
(3,236) |
||
Profit After Tax (reported) |
(4,757) |
(4,089) |
(3,262) |
(2,983) |
(4,843) |
||
Minority interests |
0 |
0 |
0 |
0 |
0 |
||
Discontinued operations |
0 |
0 |
0 |
0 |
0 |
||
Net income (normalised) |
(3,955) |
(3,847) |
(3,209) |
(2,829) |
(3,236) |
||
Net income (reported) |
(4,757) |
(4,089) |
(3,262) |
(2,983) |
(4,843) |
||
Average Number of Shares Outstanding (m) |
809.6 |
846.1 |
862.2 |
888.7 |
982.8 |
||
EPS - normalised (p) |
|
|
(0.49) |
(0.45) |
(0.37) |
(0.32) |
(0.32) |
EPS - diluted normalised (c) |
|
|
(0.49) |
(0.45) |
(0.37) |
(0.32) |
(0.33) |
EPS - basic reported (c) |
|
|
(0.59) |
(0.48) |
(0.38) |
(0.34) |
(0.49) |
Dividend per share (p) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
||
BALANCE SHEET |
|||||||
Fixed Assets |
|
|
4,080 |
3,980 |
3,885 |
3,654 |
3,506 |
Intangible Assets |
2,924 |
2,924 |
2,924 |
2,924 |
2,924 |
||
Tangible Assets |
1,156 |
1,056 |
961 |
730 |
582 |
||
Investments & other |
0 |
0 |
0 |
0 |
0 |
||
Current Assets |
|
|
4,685 |
5,561 |
2,600 |
1,396 |
2,766 |
Stocks |
0 |
61 |
61 |
61 |
61 |
||
Debtors |
297 |
302 |
188 |
169 |
213 |
||
Cash & cash equivalents |
4,268 |
5,045 |
2,229 |
1,060 |
2,380 |
||
Other |
120 |
153 |
122 |
106 |
112 |
||
Current Liabilities |
|
|
(576) |
(247) |
(400) |
(288) |
(2,243) |
Creditors |
(576) |
(247) |
(400) |
(288) |
(198) |
||
Tax and social security |
0 |
0 |
0 |
0 |
0 |
||
Short term borrowings |
0 |
0 |
0 |
0 |
0 |
||
Convertible securities |
0 |
0 |
0 |
0 |
(2,045) |
||
Long Term Liabilities |
|
|
0 |
0 |
0 |
0 |
0 |
Long term borrowings |
0 |
0 |
0 |
0 |
0 |
||
Other long term liabilities |
0 |
0 |
0 |
0 |
0 |
||
Net Assets |
|
|
8,189 |
9,294 |
6,085 |
4,762 |
4,029 |
Minority interests |
0 |
0 |
0 |
0 |
0 |
||
Shareholders' equity |
|
|
8,189 |
9,294 |
6,085 |
4,762 |
4,029 |
CASH FLOW |
|||||||
Op Cash Flow before WC and tax |
(3,989) |
(3,858) |
(3,284) |
(2,780) |
(3,072) |
||
Working capital |
308 |
(428) |
298 |
(77) |
(140) |
||
Exceptional & other |
2 |
0 |
0 |
130 |
65 |
||
Tax |
149 |
213 |
294 |
184 |
147 |
||
Net operating cash flow |
|
|
(3,530) |
(4,073) |
(2,692) |
(2,543) |
(3,000) |
Capex |
(596) |
(111) |
(135) |
(24) |
(24) |
||
Acquisitions/disposals |
0 |
0 |
0 |
0 |
0 |
||
Net interest |
33 |
9 |
11 |
(3) |
1 |
||
Equity financing |
0 |
4,952 |
0 |
1,401 |
2,343 |
||
Dividends |
0 |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
0 |
||
Net Cash Flow |
(4,093) |
777 |
(2,816) |
(1,169) |
(680) |
||
Opening net debt/(cash) |
|
|
(8,361) |
(4,268) |
(5,045) |
(2,229) |
(1,060) |
FX |
0 |
0 |
0 |
0 |
0 |
||
Other non-cash movements |
0 |
0 |
0 |
0 |
2,000 |
||
Closing net debt/(cash) |
|
|
(4,268) |
(5,045) |
(2,229) |
(1,060) |
(2,380) |
Source: Company reports
|
|
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