Sign up Australia
Proactive Investors - Run By Investors For Investors

Market starts to appreciate Aggregated Micro Power Holdings' progress

Acquisitions over the past year had driven the improvement and will give sales a further kicker in the current year.
wood chip pile
AMPH supplies wood chips to boilers

Wood chip and boiler specialist Aggregated Micro Power Holdings plc (LON:AMPH) has seen a step change in the scale of the business over the past twelve months.

Its latest annual numbers demonstrated the progress.

Revenues jumped to £19.7mln (£1.3mln for 15 months), while the AIM-listed group also posted a profit of £930,000 (£7.7mln loss).

WATCH: Aggregated Micro Power's' Richard Burrell 'delighted' with full year results

Richard Burrell, chief executive, said acquisitions over the past year had driven the improvement and will give sales a further kicker in the current year. 

"The acquisition of three fuels businesses, which will see further turnover growth next year reflecting a full year's trading, has made for a transformational year at AMP.”

Most of the profits this time came from the boiler installation scheme financed by its projects business, which chipped in £1.64mln, while wood fuels contributed £367,000.

Assets under management grew to £66m comprising operational boilers, in-development peaking plant assets and other biomass assets on long term contracts.

 

Vertical integration

Aggregated Micro is a case study of a vertically integrated business.

The acquisition last year of Forest Fuels made it one of the UK’s largest woodchip suppliers.

From which it supplies the biomass-fuelled boilers used by schools, care homes and business parks.

Once a boiler project is finished it is taken over by a special purpose investment vehicle AMPIL, which frees up capital to fund more new projects.

AMP provides fuel for the boilers (wood chip and wood pellets) and commissions and installs them on a long term contract.

The government's recent Renewable Heat Incentive changes through to 2021 have also helped the strategy of installing larger biomass installations with commercial heat users.

A second investment vehicle to run boiler projects installed by AMP, AMPIL2, was launched in October and this will utilise both AMP to install boilers but also buy fuel from Forest Fuels.

 

Peaking plant progress

AMP is also branching out into power supply and has over 80Mws of grid balancing projects with planning permission and grid connection offers. These peaking projects kick-in when demand is overwhelming the grid.

In January, it got funding (£14mln) for its first peaking plant.

Located on the Kingsnorth Industrial Estate in Kent the Ashford Power project will comprise some 21Mw of natural gas reciprocating engines, which will sell into the grid at times of peak demand.

The financing is provided by funds managed by Triple Point Investment Management.

"This is our first peaking plant project to reach financial close,” said Burrell.

“AMPH will earn project development fees, on-going operation and maintenance fees and has shares in the project which are subject to a hurdle return being achieved by Triple Point.”

 

Shares rising

Even though the company has yet to see the full impact of its wood chip and fuels fuels expansion and the peaking plant side has yet to make any real contribution, investors have started to recognise the progress being made.

Shares have risen by 50% this year to 109p, now valuing the group at £55mln.



PhilW.jpg
Why Invest In Aggregated Micro Power Holdings plc? Read More Here

Register here to be notified of future AMPH Company articles
View full AMPH profile View Profile

Aggregated Micro Power Holdings plc Timeline

Related Articles

shutterstock_302650592_58dc0a99d5fca.jpg
March 30 2017
This week the firm has bolstered its coffers to the tune of over $20mln via a now closed bought deal financing.
picture of truck
October 25 2017
AMP acquired Billingtons from Drax for £2mln. Of that, £1.6mln is being paid in shares to give the power station operator just over a 4% stake
UUV-Aquabotix_Hybrid-and-Endura-pic-757.jpg
June 19 2017
Brendan Martin talked underwater drone technology and commercialisation.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use