Our key feature this month is a review of the UK/EU Electricity sector by Nigel Hawkins who has recently joined Hardman to cover the utilities and renewable energy market. Nigel has had a long career in the City covering both industries having worked at Hoare Govett covering water and electricity privatisation, and at Yamaichi and W de Bröe.
The main conclusions are:
► Despite a number of key government initiatives across Europe to encourage new investment by smaller companies, the electricity industry remains dominated by the very large corporates.
► Falling demand has caused power prices to fall sharply, especially in Germany.
► Most of the larger energy companies have given priority to reducing high debt levels, either selling non-core assets or in some cases reducing dividends.
► Electricity generating companies are no longer regarded as defensive assets as investors in RWE and E.On have discovered.
► Over the past decade a shift to renewable generation, aided by generous public subsidies, has been a notable feature of the UK/EU energy landscape.
This months report contains research for the following companies:
► Advanced Oncotherapy Plc
► Allergy Therapeutics Plc
► Alliance Pharma Plc
► Avacta
► Burford Capital
► City of London Investment Group
► Grafenia
► Lombard Risk Management
► MedicX Fund
► Murgitroyd
► PPHE Hotel Group
► Primary Health Properties
► Premaitha Health
► Purplebricks
► Real Good Food
► Redx Pharma
► Tethys Oil AB
► Tissue Regenix
► Titon Holdings
► Verona Pharma