Don't worry too much about these full-year results from Quadrise Fuels (QFI) - it's the commercialisation of the group's proprietary low-cost synthetic MSAR fuel oil that's more important and that's likely to commence from the second half of next year.
Importantly, there's now more clarity regarding the commercial and intellectual property (IP) side now that Quadrise has re-contracted its relationship with AkzoNobel (AKZA). In future, the companies will share IP ownership on technologies developed during the commercial rollout, but Quadrise will be sole licensor for the MSAR technology itself, while holding worldwide rights for Akzo's bolt-on refinery units.
Operationally, Quadrise's net loss ticked up by 18 per cent to £4.96m - reflecting non-cash, fair value adjustments of unquoted Canadian securities. But, with development costs covered and an annual cash-burn of around £1.9m, Quadrise has more than enough cash to see it through MSAR's certification process and onto to its commercial phase. That should follow 2013's sea-trials of Marine MSAR 2 in Maersk vessels - using engines produced by maritime engineering heavyweights Wartsila and MAN.
| QUADRISE FUELS INTERNATIONAL (QFI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 24.3p | MARKET VALUE: | £188m | |
| TOUCH: | 24-25.5p | 12-MONTH HIGH: | 28p | LOW: 7.6p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 1.3p* | NET CASH: | £3.24m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 4.73 | -5.11 | -1.10 | nil |
| 2010 | 0.07 | -3.82 | -0.86 | nil |
| 2011 | 0.04 | -6.64 | -1.19 | nil |
| 2012 | 0.04 | -4.21 | -0.56 | nil |
| 2013 | 0.08 | -5.00 | -0.64 | nil |
| % change | +100 | - | - | - |
*Includes intangible assets of £3.61m, or 0.5p a share | ||||
