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Post by captainconfident on Apr 15, 2021 12:56:42 GMT
£4m raise on Abundance. If electric charging points are the new petrol stations, and once committed to the electric car they bought, people have to pay the current electricity price to fill up, where is the risk that prices these debentures at 9%?
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Steerpike
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Post by Steerpike on Apr 15, 2021 13:17:43 GMT
Charging has been free of charge and has cost the council £200k, they want to unload the network prior to charging being introduced, so this could be a real opportunity or it could be a collection of mostly 7kW chargers that are certainly not the fastest. There may be a continuing demand for these types of charger but will there be a decent return on investment? If Octopus green electricity costs let's say 10p and sells for 25p and each charger operates on average for 6 hours per day that looks like a gross profit per charger of about £2,000 per annum, which may not be that exciting.
Future focus is likely to be on much faster chargers comparable with the Supercharger network. Clearly VW, Mercedes et al will be investing heavily directly or indirectly in charging networks, will this one be left behind or bought up at a nice profit for I***a? I***a network of companies only formed in the last year, some very recently indeed, to take over part of the A**y business because A**y have decided they don't want this part of the business.
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shimself
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Post by shimself on Apr 15, 2021 16:15:07 GMT
Charging has been free of charge and has cost the council £200k, they want to unload the network prior to charging being introduced, so this could be a real opportunity or it could be a collection of mostly 7kW chargers that are certainly not the fastest. There may be a continuing demand for these types of charger but will there be a decent return on investment? If Octopus green electricity costs let's say 10p and sells for 25p and each charger operates on average for 6 hours per day that looks like a gross profit per charger of about £2,000 per annum, which may not be that exciting.
Future focus is likely to be on much faster chargers comparable with the Supercharger network. Clearly VW, Mercedes et al will be investing heavily directly or indirectly in charging networks, will this one be left behind or bought up at a nice profit for I***a? I***a network of companies only formed in the last year, some very recently indeed, to take over part of the A**y business because A**y have decided they don't want this part of the business. The info pack is all about new installations isn't it?
I don't think it's guaranteed but I get the impression these must be Rapid (50Kw for unit illustrated) so that's say £7-50/hour profit, £50 a day, £20kpa. 2.5 years to pay back? Then there's some words about advertising but I don't have much faith in that.
ALSO (I have asked AI these): The budget is £50k per unit (50 units for £2.47M). It says here www.propertymanagerinsider.com/how-much-do-ev-charging-stations-cost/ that it's more like $13000 say £10,000. OK it's the USA not UK, but still 5X the cost? Working capital for early operations £0.79M. It sounds like an awful lot compared to yr 1 £0.5M (300K GP) sales. Or indeed yr 2 at £1.2M sales (720K GP).
Also noted if they get to 4M raised not the 3.2M then that extra 800K is spent 380K on more units and 340K on more working capital (80k on finance). Why add 43% to working capital but only 18% on units?
It all feels a bit fag packet budgeting to me
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Post by GentlemansFamilyFinances on Apr 15, 2021 22:31:07 GMT
This is just the sort of project that Abundance should be putting up to raise capital. For those of us who can't charge at home, having a network of charging stations is essential and these guys seem to be ones that can make that happen.
Just think of how much money needs to be invested into the infrastructure to make EVs work. 50 charging points is a drop in the ocean - potentially a deep vein of future revenue for the folks at Abundance.
So, I'm glad that this is listed and if I have some money I'll bung it in - but it is filling fast (Around 33% full after around 12 hours!).
The interest rate must be tempting a lot of people to put their money in.
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Post by GentlemansFamilyFinances on Apr 15, 2021 22:34:57 GMT
just wondering if paying 25p/kWh is worth it if you can get a city centre parking space and not have to pay for parking? At 40kWs and 25p/kWh, an hours parking would cost you a tenner! But more like £4 (extra cost of leccy based on a home cost of 15p/unit. It costs £3/h in the centre of Manchester to park. secure.manchester.gov.uk/info/500346/city_centre_parking/146/on-street_parking/2I've not driven an electric car let alone charged one, but is there a way to charge slowly? If so, charging your car might be a good way to park on the cheap. |
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Post by optymystic on Apr 16, 2021 10:47:25 GMT
I cannot resist observing the paucity of EV charging points on the S*****c Business Park, home to subsidy farmer and electricity generator M*****w V****y CHP elsewhere in these pages. We might be wondering about the level of commitment to renewable energy.
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Steerpike
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Post by Steerpike on Apr 16, 2021 11:14:13 GMT
There is also a, much more modest, fund raise on Seedrs for Virtus Energy, we can expect many opportunities for investments in the EV charger network over the next few years.
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Post by GentlemansFamilyFinances on Apr 20, 2021 19:41:50 GMT
Looks like this one will fill-up before the end of the week - possibly by Wednesday.
I'm surprised by the rate at which it was subscribed after the other one has not filled up as quickly (and still nowhere near)
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eeyore
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Post by eeyore on Apr 21, 2021 9:25:05 GMT
Looks like this one will fill-up before the end of the week - possibly by Wednesday. I'm surprised by the rate at which it was subscribed after the other one has not filled up as quickly (and still nowhere near) Maybe because there was an article in The Guardian last Saturday about the project pointing out the green credentials? No doubt other papers printed articles based on the same press release. PS: The $13,000 estimated cost of installation per charging point in the earlier post in this thread covers only the cost of the equipment and connection to the premises' existing distribution cabling. It does NOT include any cost associated with planning approval, building regulations, site acquisition, groundworks, etc, etc.
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Post by GentlemansFamilyFinances on Apr 21, 2021 14:23:05 GMT
Blink and you'll miss it - now sitting at £3.99m filled!
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Post by GentlemansFamilyFinances on Apr 21, 2021 14:37:09 GMT
All filled now in what must be a record 7 days?
Hopefully the first of many new projects.
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Post by GentlemansFamilyFinances on Dec 10, 2021 7:44:41 GMT
New EV charging debenture listed, number 2 for this lot.
Seeking to raise £6.5m with a min. Of £3m.
I've not looked at it in any detail and I am not sure I'll invest yet.
It is a way though to support the move to electric vehicles if you can't / won't buy an electric car right now.
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easynow
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Post by easynow on Dec 10, 2021 11:26:37 GMT
I have only had a very quick look at this myself, but at £100k per charger  , how does this compare to the previous offering? "I***a will help boost EV uptake by developing publicly and privately funded chargers for the established Be.EV charging network. They are raising £6.5m to fund the construction of 65 additional EV chargers within Greater Manchester and the North West."
Uptake doesn't seem to be too shabby, with over £500k subscribed in the first 24 hours. |
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Post by GentlemansFamilyFinances on Dec 10, 2021 16:13:17 GMT
That £100k per charger struck me as being a high cost but maybe that's the cost of new infrastructure.
The cost for the charger themselves is a fraction of that sum but you've got to think of who else takes a piece of the action.
How the transition to electric cars is paid for is anyone's guess.
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Post by captainconfident on Dec 11, 2021 10:50:03 GMT
The article in the Economist titled "A Lack of Chargers could Stall the Electric Vehicle Revolution" (11th Dec 2021 edition) said the following:- " A common kind is kerbside charging, via converted lampposts or other dedicated points, where cars might park overnight. Then there is “destination” charging, of the sort that is becoming more widely available in car parks at shopping centres, restaurants, cinemas and the like. Both kinds are level-2, with installation costs usually between $2,000 and $10,000 per point.
Fast charging, which typically adds 100-130km of range every 20 minutes, is vital on main roads for drivers making long inter-city trips and in cities for a quick emergency jolt. Commercial vehicles driving longer distances, such as taxis, need fast charging, too. But since charging firms need to recoup hefty costs of $100,000 or more per fast charger, using such facilities is pricey."
The Swarco Raption 50 and 150 units shown in the offer document are that sort of high capacity charger, making sense of the apparent £100 000 price tag. The Economist article was in the context of the lack of EV infrastructure compared to potential demand, so the picture presented by the borrower does become clearer. The reference to fast chargers and taxis also find an echo in the offer document, as our borrower "commenced work to install a further 60 chargers to be used by dedicated electric vehicle taxis". The problem for companies like this is low take-up in the early months after installation, but with the one-year deferred interest repayment and the electric taxis providing a captive market of guaranteed early revenue stream, you begin to see that this project starts to add up. In the course of reading about all this I came across the problem of ICEing of chargers. Read more! www.motoringresearch.com/advice/what-is-iceing-electric-car-charger/ |
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, how does this compare to the previous offering?