LPE - Locality Planning Energy

[duncan22]

LPE - Locality Planning Energy

Seems great value to me - they are an energy retailer that sells to strata blocks putting in their own meters and then saving both the apartments and common areas money by amalgamating all the use and buying wholesale.

Here are a few details:
- Raised $6m at end of 2015 @ 2c and RTO'd (from SXT) + raised $5.78m @ 2c at start of 2017.
- Have now hit 100GWh under management with average contract length of 7.2 years (way better than normal retail energy providers who have massive churn). Margins steady at 18-20%.
- Achieving pretty consistent month on month growth in revenue which is forecast to continue - have only targeted SE Queensland so far so lots of room for growth.
- Forecasting $44.2m revenue, 680knpat this year so trading on FY18/19 PE multiple of 61 due to cost of expansion, FY19/20 forecast of $79.7m revenue, $4.65npat so forecast PE 9.5.
- Have a $10m debt facility to fund infrastructure for each strata which is paid back over time.
- Founders & management own 60% and voluntarily escrowed most of this.
- Currently at 52-week lows despite all of this progress - market cap of $42m.

Investor presentation here: https://hotcopper.com.au/threads/ann.../#.W0Aau9IzZPY

Anyone looked into LPE? Have any thoughts? Do you think it represents value or have I missed something?