Northland Capital partners view on Amphion Innovations (LON:AMP): Today’s announcement is a positive step forward for Amphion, as the group has effectively rolled over a large tranche of its debt, and is negotiating the roll over of the balance.
| Convertible Promissory Note and Macaleer loan terms extended |
| n A meeting of its Unsecured Convertible Promissory Notes 2008-2015 holders was held on 30 December 2015 at which it was resolved by a large majority that the terms of these notes be amended such that the due date for settlement becomes 28th February 2016 rather than 31st December 2015. Discussions with these note holders about a longer-term resolution are expected to be concluded by the end of February 2016.
n Second, agreed in principle to replace the $3,308,600 of promissory notes payable to R. James Macaleer, the former Chairman of the Company and the $3,300,000 issued to the RJM Amphion Trust, a trust set up for the benefit of Mr Macaleer’s children, with promissory notes that mature on 31st December 2016 from 31st December 2015. The rate of interest on the New Notes remains unchanged at 7%. The New Notes also contain certain provisions for early repayment. n These new notes contain certain provisions for early repayment, however, In no case will any payment be made on these notes until the amounts currently owed under Amphion’s existing Loan Facility are fully repaid. The final payment under the Loan Facility is currently scheduled for 1st November 2016. |
| Year end Dec | Revs ($m) | Adj. EBITDA ($m) | Adj. PBT ($m) | Tax (%) | Adj. EPS (c) | PER (x) | Div (c) | Net cash ($m) | Yield (%) |
| 2012A | 1.4 | (6.4) | (6.9) | – | (5.0) | – | – | (15.2) | – |
| 2013A | 1.0 | (2.6) | (6.4) | – | (4.0) | – | – | (16.4) | – |
| 2014E | Coverage pending | ||||||||
| 2015E | |||||||||
| Source: Northland Capital Partners Limited.
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