Last close As at 05/08/2026
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Market capitalisation
GBP21m
Research: Industrials
During FY21 Quadrise made significant progress on trials in each of its target sectors: industry, marine, upstream and power; and launched a bio-fuel branded as bioMSAR. Progress has been slower than management expected, primarily because of COVID-19 restricting travel and site access. Nevertheless, the funds raised in March still provide the cash resources to progress the ongoing trial programmes to commercial revenues and positive sustainable cash flows even though management’s estimated timescale for this has slipped from calendar year (CY) Q422 to CY Q123.
Written by
Quadrise Fuels International International |
Year of progress despite coronavirus |
FY21 results |
Alternative energy |
5 October 2021 |
Share price performance
Business description
Next events
Analyst
Quadrise Fuels International is a research client of Edison Investment Research Limited |
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During FY21 Quadrise made significant progress on trials in each of its target sectors: industry, marine, upstream and power; and launched a bio-fuel branded as bioMSAR. Progress has been slower than management expected, primarily because of COVID-19 restricting travel and site access. Nevertheless, the funds raised in March still provide the cash resources to progress the ongoing trial programmes to commercial revenues and positive sustainable cash flows even though management’s estimated timescale for this has slipped from calendar year (CY) Q422 to CY Q123.
Year end |
Revenue (£m) |
EBITDA |
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.
Progress on three trial programmes despite delays
Following the signing of a joint development agreement in January 2021, Quadrise and MSC Shipmanagement could potentially start on-vessel, commercial-scale trials as early as CY H122. If successful, the trials may be followed by commercial roll-out of bioMSAR and/or MSAR across MSC’s global fleet. Recent tests on samples from Greenfield Energy’s site in Utah have confirmed that heavy sweet oil from the site is suitable for conversion to both MSAR or bioMSAR for potential power and marine applications. Quadrise and the customer in Morocco are preparing for a larger-scale industrial trial in early CY Q421 and a commercial trial later in the same quarter. Recent third-party tests on Quadrise’s new biofuel show CO2 savings that are materially ahead of existing biofuels.
Cash runway to sustainability maintained
Quadrise is still pre-revenue. Stripping out share option and exceptional charges, operating losses narrowed by £0.3m y-o-y in FY21 to £2.9m, reflecting lower administrative costs. Free cash outflow decreased by £0.6m to £2.4m. Quadrise completed a placing and oversubscribed open offer in March, raising £7.0m (gross) at 2.7p/share, leaving the group with £7.0m cash, no debt and no convertible securities at end FY21. Despite the programme delays, management expects it has the cash resources to progress the ongoing trial programmes to commercial revenues and positive sustainable cash flows by CY Q123.
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 heavy fuel oil (HFO) under a licensing model would generate $15.9m in annual EBITDA (see our November 2020 outlook note).
Exhibit 1: Financial summary
£000s |
2018 |
2019 |
2020 |
2021 |
||
Year end 30 June |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||
Revenue |
|
|
9 |
22 |
0 |
17 |
EBITDA |
|
|
(3,284) |
(2,780) |
(3,006) |
(2,752) |
Operating Profit (before amort. and except.) |
|
|
(3,514) |
(3,010) |
(3,178) |
(2,887) |
Amortisation of acquired intangibles |
0 |
0 |
0 |
0 |
||
Exceptionals |
0 |
0 |
(1,199) |
(1,266) |
||
Share-based payments |
(53) |
(154) |
(474) |
(303) |
||
Reported operating profit |
(3,567) |
(3,164) |
(4,851) |
(4,456) |
||
Net Interest |
11 |
(3) |
(139) |
46 |
||
Profit Before Tax (norm) |
|
|
(3,503) |
(3,013) |
(3,317) |
(2,841) |
Profit Before Tax (reported) |
|
|
(3,556) |
(3,167) |
(4,990) |
(4,410) |
Reported tax |
294 |
184 |
147 |
150 |
||
Profit After Tax (norm) |
(3,209) |
(2,829) |
(3,170) |
(2,691) |
||
Profit After Tax (reported) |
(3,262) |
(2,983) |
(4,843) |
(4,260) |
||
Minority interests |
0 |
0 |
0 |
0 |
||
Discontinued operations |
0 |
0 |
0 |
0 |
||
Net income (normalised) |
(3,209) |
(2,829) |
(3,170) |
(2,691) |
||
Net income (reported) |
(3,262) |
(2,983) |
(4,843) |
(4,260) |
||
Average Number of Shares Outstanding (m) |
862.2 |
888.7 |
982.8 |
1,175.4 |
||
EPS - normalised (p) |
|
|
(0.37) |
(0.32) |
(0.32) |
(0.23) |
EPS - diluted normalised (p) |
|
|
(0.37) |
(0.32) |
(0.32) |
(0.23) |
EPS - basic reported (p) |
|
|
(0.38) |
(0.34) |
(0.49) |
(0.36) |
Dividend per share (p) |
0.00 |
0.00 |
0.00 |
0.00 |
||
BALANCE SHEET |
||||||
Fixed Assets |
|
|
3,885 |
3,654 |
3,506 |
3,384 |
Intangible Assets |
2,924 |
2,924 |
2,924 |
2,924 |
||
Tangible Assets |
961 |
730 |
582 |
460 |
||
Investments & other |
0 |
0 |
0 |
0 |
||
Current Assets |
|
|
2,600 |
1,396 |
2,766 |
7,279 |
Stocks |
61 |
61 |
61 |
61 |
||
Debtors |
188 |
169 |
213 |
117 |
||
Cash & cash equivalents |
2,229 |
1,060 |
2,380 |
7,006 |
||
Other |
122 |
106 |
112 |
95 |
||
Current Liabilities |
|
|
(400) |
(288) |
(2,243) |
(276) |
Creditors |
(400) |
(288) |
(198) |
(276) |
||
Tax and social security |
0 |
0 |
0 |
0 |
||
Short term borrowings |
0 |
0 |
0 |
0 |
||
Convertible securities |
0 |
0 |
(2,045) |
0 |
||
Long Term Liabilities |
|
|
0 |
0 |
0 |
0 |
Long term borrowings |
0 |
0 |
0 |
0 |
||
Other long term liabilities |
0 |
0 |
0 |
0 |
||
Net Assets |
|
|
6,085 |
4,762 |
4,029 |
10,387 |
Minority interests |
0 |
0 |
0 |
0 |
||
Shareholders' equity |
|
|
6,085 |
4,762 |
4,029 |
10,387 |
CASH FLOW |
||||||
Op Cash Flow before WC and tax |
(3,284) |
(2,780) |
(3,072) |
(2,752) |
||
Working capital |
298 |
(77) |
(140) |
191 |
||
Exceptional & other |
0 |
130 |
65 |
7 |
||
Tax |
294 |
184 |
147 |
150 |
||
Net operating cash flow |
|
|
(2,692) |
(2,543) |
(3,000) |
(2,404) |
Capex |
(135) |
(24) |
(24) |
(29) |
||
Acquisitions/disposals |
0 |
0 |
0 |
0 |
||
Net interest |
11 |
(3) |
1 |
46 |
||
Equity financing |
0 |
1,401 |
2,343 |
6,513 |
||
Dividends |
0 |
0 |
0 |
0 |
||
Other |
0 |
0 |
0 |
0 |
||
Net Cash Flow |
(2,816) |
(1,169) |
(680) |
4,126 |
||
Opening net debt/(cash) |
|
|
(5,045) |
(2,229) |
(1,060) |
(2,380) |
FX |
0 |
0 |
0 |
0 |
||
Other non-cash movements |
0 |
0 |
2,000 |
500 |
||
Closing net debt/(cash) |
|
|
(2,229) |
(1,060) |
(2,380) |
(7,006) |
Source: Company accounts
|
|
Research: Investment Companies
Acorn Income Fund (AIF) ordinary shareholders have less than a week to decide whether to cash in their investment or roll over into the open-ended Unicorn UK Income Fund run by AIF’s small-cap portfolio managers, Fraser Mackersie and Simon Moon. The proposals are subject to a vote in favour of discontinuation at the AGM and subsequent EGM approval (proxy forms to be returned by 8 October) and elections for the rollover or cash exit must be received by the registrar by 11 October. AIF’s 2022 zero-dividend preference share (ZDP) holders need take no action at present. In this note, we outline the background to and substance of the proposals, as well as considering how the Unicorn fund stacks up against the AIF portfolio.