Tribune

Tribune Group – fuel and emissions reduction…

A New Combustion technology that increases profits and lowers the worlds carbon footprint. TGL holds an exclusive licence to commercialise retrofit Alchemist products in a number of countries across the world and conduct all R&D necessary to make the products.

Summary

Type Private Equity
Sector Technology & Emmissions Reduction
Target Return 40x ROI (projected exit in 5 yrs)
Equity Raise £2.5 million
EIS-Approved? Yes
Download the Full Investment Memorandum

Highlights

15-20% Average net Fuel Saving for HGVs, and up to 35% CO2 emmissions reduction.

EIS-approved (tax efficient investment) led by a 12-strong experienced management team.

£1.5 million R&D expenditure to date, with 4 Sub Licensees & 4 Reseller Agreements in place.

£20.4 million Year 1 sales target, with 109m pipeline (Top 4 trials clients).

First of 40 trial units installed across early adopters. Top 4 have an accumulative fleet size of 7303.

20 Yr Licence. Exploit ALL patents. (Alchemist invention; improves the air-fuel mix).

Background

Over the last two years, thousands of miles of testing and validation has taken place to develop Alchemist: a revolutionary fuel reduction and emissions lowering technology. No other innovation in this field produces such large savings across both fuel and emissions reduction.

TGL holds an exclusive licence to commercialise retrofit Alchemist products in a number of countries across the world and conduct all R&D necessary to make the products.

The Alchemist addresses several issues for both transport operators and governments around the world. Lowering fuel costs by up to 22%, whilst tackling the high cost of air pollution, which is the focus of governments and campaign groups worldwide.

How it works

The Alchemist mixes very small amounts of LPG, changing the fuel chemistry, which produces a greater energy release during the combustion cycle. As a result of this very clean burn, the emissions across the board are also significantly reduced. The amount of LPG injected is precisely calculated to the engine’s operating conditions and is only used in very small amounts as a medicinal dose, not as a replacement fuel or dual fuel.

The opportunity ahead

New heavy commercial vehicles (HCV) over 16 tonnes: Three months into 2017, the EU market grew by 4.8%, reaching 75,329 new units. Italy (+43.9%), France (+5.7%), Germany (+4.9%), Spain (+2.0) and the UK (+0.6%) all saw their demand for heavy trucks increase.

One month after the soft launch, 40 Alchemists have been ordered to fulfil client trials. An estimated 10,000+ vehicles make up the total fleets. The top 4 trial clients account for an accumulative fleet size of 7303 vehicles.

Total revenues, including royalty receipts and pre-tax profits over the 5 years are forecast at £1.59bn and £1.01bn, being on average 64% net margin. Proposed dividends are built into the financial model. These are based upon 10% of the pre tax profits. Dividend payments over the 5 years amount to £158.4m.

TGL anticipates valuing the company, at exit, in excess of £1.4bn, that being 3 x EBIT or 2 x revenues. This would result in a ROI over x40. Due to the unique nature of this product, its forecast demand and its global potential, assessing exits from similar companies is very difficult although ‘Auto-related’ companies have been sold in recent years for in excess of x30 EBIT.

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