Investors hoping for a punchy, number-laden summary of Quadrise Fuels ' (QFI) recent development will have been disappointed by the group's wordy 2015 highlights reel. But while revenue growth still appears a way off, half-year results provided one key source of solace. Outgoing executive chairman Ian Williams now reports that the "progress of lead projects has become better aligned with forecasts".
Indeed, several recent milestones derisk the investment case for the supplier of MSAR fuel, a play on the spread between heavy fuel oil and diesel rather than headline energy prices. Its contract to supply CEPSA's San Roque refinery with a manufacturing unit is on track to complete mid-2016. That should be followed by a 10-month 4,000 hour programme to collect engine operating data from a fleet of Maersk Line vessels.
Quadrise is also finalising terms for its venture in Saudi Arabia, though the "production to combustion" demonstration has now been pushed back to the autumn, and will complete by this time next year. Based on current project timescales, the company says its cash pile should carry it through to sustainable early revenues.
Analysts at Peel Hunt are forecasting an adjusted pre-tax loss of £4.1m for the year to June, giving a 0.5p loss per share.
QUADRISE FUELS INTERNATIONAL (QFI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 13p | MARKET VALUE: | £105m | |
| TOUCH: | 12.5-13p | 12-MONTH HIGH: | 24p | LOW: 9p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 1.3p* | NET CASH: | £6.5m | |
| Half-year to 31 Dec | Turnover £000 | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 58 | -2.2 | -0.27 | nil |
| 2015 | 2.0 | -2.4 | -0.29 | nil |
| % change | -97 | - | - | - |
*Includes intangible assets of £2.9m, or 0.4p a share. | ||||
