The strategy update was in line with the recent communications from the company, but provided more details ahead of the capital increase. While the oil & gas activities continue to recover, the priority remains on renewables (both inorganic and organic). A large share of the proceeds will fund acquisitions, with one soon to be announced in renewables services. Furthermore, the company is aiming to break-even at operating cash flow level by the end of the year.
Of the €4m of targeted fundraising (a combination of shares and financing lines from Negma): 60% will be used for acquisitions (€2.4m), 15% in r&d (€600k), 10-15% in recruitment (€400-600k), 10-15% for working capital needs and deleveraging.
The company will announce a new acquisition soon and more are planned, on our understanding mainly in renewables services. The successful acquisition of 8.2 France seems to be a footprint for future targets. The synergies with Dolfines’ engineers are visible with the development of the telescopic arm for offshore heavy maintenance.
In research & development, most of the investments will be allocated to the development of the larger floater TrussFloat15. The OHMe (Offshore Heavy Maintenance enabler) project (telescopic arm) might receive external public funding.
