Introduction

Cathal Friel brings his 5^th IPO to the London Market, and it looks to be one of the most exciting yet.

European Green Transition “EGT” is focused on acquiring, integrating and optimising revenue-generating and profitable services businesses in the critical infrastructure sector across the UK and Ireland.

As laid out in its IPO strategy, EGT recently announced the acquisition of a Wind Power related critical infrastructure service platform.  This article will focus on the acquisition as it’s a major milestone and a key driver for the company’s growth going forwards.

The company does however have some legacy mining projects such as its Olserum Rare Earths project in Sweden and has been working up the assets in the background, however under the company’s strategy, these will likely be sold so it can focus on its new core business and further potential acquisitions.

In addition to the company’s recent ‘game-changing’ acquisition, the company will continue to look for further revenue generating businesses in the critical infrastructure services sector across energy, water, transport and data centres.

The company will look for businesses that have low capital intensity, that are cash generative with a recurring revenue model.

The company has just raised £7.5M in its recent heavily over-subscribed fundraise which puts the company on a solid financial footing and according to the company— no requirement to complete any further fund-raises due to its revenue generating and EBITDA positive business.

The Acquisition

“this acquisition from Arena capital partners is probably one of the best and most exciting deals I have done or will ever do”, Cathal Friel, Co-Founder & Exec Chair

Under the acquisition, EGT recently acquired four O&M business’s—the ‘Critical Infrastructure Service Platform’ for £3.5M as follows:

• Earthmill – 100%
• WEP – 85%
• Silverford – 85%
• Anemos – 52% 

On paper this looks a remarkable transaction when you consider that the business itself came with £2.5M of net operating cash and £3.95M of live inventory on the balance sheet—and its profit making!

In-fact EGT paid just 2.3x the business’s last audited EBITDA of £1.5M

To put this into context, in October 2024, AIM listed Renew holdings paid £50M for Full-Circle, a wind O&M business doing £25M revenue and £5M EBITDA.

That’s a purchase cost of 10x EBITDA Vs EGT’s acquisition cost of 2.3x EBITDA (2024)

It’s also worth pointing out that EGT plan to buy the remaining 15% of both WEP and Silverford from the founder.

The Landscape & Timing

The acquisition not only looks great value but the timing of it couldn’t be better. 

In July 2024, the government removed the de facto ban on onshore wind in England by revising planning policy, and the Onshore Wind Taskforce said this has put onshore wind back on the same footing as other development.

More recently, the UK Government outlined proposals to enable farmers, schools and industrial users to install small onshore wind turbines without the need for planning permission.

This not only re-enforces EGT’s existing business but now looks to be opening the door to a whole new line of business that EGT has expertise in.

The Businesses

EarthMill 

EarthMill is the largest part of the overall business with O&M (Operations and Maintenance) across the UK and Ireland and generated over £12M revenue in 2025.

The company covers:

• ·      Multi-brand turbine servicing
• ·      Repowering and Retrofit
• ·      SCADA and precision engineering
• ·      Monitoring via Anemos (more later on Anemos!)

The company has several strategic edges such as holding proprietary OEM IP for Endurance wind turbines and is the sole license holder to Northern Power turbines in the UK.

Repowering

Repowering is the process of upgrading/refurbishing or replacing wind turbine components to extend an existing turbines lifespan by up to 25 years as well as increasing energy output. 

With the UK Governments policy changes (discussed above), the company sees real growth opportunity in repowering.

The company has identified 280 of its current 900 clients as potential candidates for repowering and in addition has 55 heads of terms signed for repowering projects. 

Each repowering project can generate £450K in average revenue and with 55 heads of terms already signed—that equates to nearly £25M in additional revenue. 

Across the company’s entire client-base the revenue potential from repowering projects alone is some £126M.

These are big numbers by themselves for a c.£17M Market Cap company—and the growth opportunities go beyond EarthMill!

WEP & Silverford

You can think of these businesses as sister companies to EarthMill.  Both WEP and Silverford cover the South and North of Ireland.  The businesses cover:

• ·      Turbine Supply, Installation and Commisisoning
• ·      Full O&M for various turbine variants such as Vestas, Endurance etc.
• ·      Repowering & Major component changes
• ·      Monitoring

You can see that the businesses are very similar to that of Earthmill and its probably no surprise then that EGT will be looking to integrate all three business together.

As mentioned earlier, the company intends to acquire the remaining 15% of both WEP and Earthmill from the founder and under the direction of company MD, David Broadbank, who has been at Earthmill for over 15 years—integrate the three businesses which should result in some meaningful cost synergies.

We said earlier the growth opportunities for EGT go beyond EarthMill…

The Irish Opportunity

EGT has identified an additional £170M revenue opportunity in Ireland. 

The company has identified 100 rural food producers and enterprises facing high energy costs. With recent events in the middle east, exacerbating these and showing just how volatile energy costs can be. The attraction for these companies is clear—self-sufficiency and off grid power—that could potentially power the whole enterprise.

Each opportunity could be worth up to £1.7M in revenue to EGT and would involve EGT installing either single or twin Vesta turbines with 450Kw battery storage, at sight, and off grid. 

The planning process is expected to be more straight forwards also as the companies involved are established rural suppliers and thus local communities are likely to be supportive.

Further Opportunity

As with these rural food producers in Ireland (that’s just one sector being targeted), the UK Governments proposal to enable farmers, schools and industrial users to install small onshore wind turbines without the need for planning permission opens the door to yet another revenue stream— much like the Irish opportunity. Off-grid, locally generated power with batteries that can be hooked into the enterprise’s local switchboard.  The potential market here is huge. 

Data Centres

There has been a lot of recent investor interest in off-grid data centres— and EGT are potentially in the mix here too.

There is evidence that Big Tech are investing heavily in renewable-powered data centres, for example signing long-term wind power purchase agreements. 

The likelihood at least for now is data centres will not be completely off grid; however, hybrid models are of interest. 

A hybrid model sees the reliability of grid connection but coupled with the cost savings and ‘green credentials’ associated with wind/battery power. 

It’s an area to watch and something EGT look likely to get involved in.

Anemos  - ‘The Jewel in the Crown’?

Anemos is described by the company as a potential jewel in the crown. 

Essentially its 24/7 real-time condition monitoring and alerting software that uses tri-axial sensors and high frequency data to detect component failures. 

The system can even be used to monitor oil particulates and provide early-warning of potential and costly major component failure such as gearboxes.

Anemos leverages AI, and its key capabilities include predictive analytics and forecasting, early component degradation and a host of other innovative monitoring capabilities.

Now here’s the interesting thing, Anemos is currently used on over 90 turbines with an additional 200+ turbines targeted in 2026/27; however, its application can go far beyond wind turbines where its currently deployed.

In fact, the company are currently talking to a shipping company with over 30 ships that are interested in Anemos’s remote condition monitoring capabilities.  Anemos offers a ‘white-label’ proposition that can extend into other industries and sectors—internationally!

Just as we said earlier that Earthmill/WEP/Silverford can create additional sales opportunities for Anemos, the inverse is true.  Anemos sales to non EGT customers can generate a further pipeline, especially with ‘repowering’ projects. 

EGT are in fact tying in ‘repowering’ customers to a 5-year Anemos contract as part of the package which could well create further longevity in Anemos revenues given it’s probably easier to stick with your current supplier after 5 years!

Anemos works in perfect unison with EGT’s current businesses, but the opportunity is far greater. 

The company holds a 52% controlling interest in Anemos with the intention of increasing its ownership. 

It’s quite possible that Anemos could be spun off into a separate company and potentially sold—if of course the price was right!

This is a Growth Story

Investors like Growth.  Well, EGT have positioned themselves with the acquisition and fundraise to do just that—aside of any further acquisitions.

The company has set itself a medium target of £50M in annual revenue and double-digit EBITDA. 

Is this achievable?

Well from a starting point of £14.7M revenues which are sticky and recurring, and the additional revenue opportunities laid out earlier in this article, coupled with organic growth and the Governments supportive policies—that support re-powering, a huge growth driver that with the current heads of terms signed account for another £19M+—yes it looks to be.

Let’s not forget that that’s just 55 heads of terms against 280 identified re-powering opportunities and excludes the Irish rural on-shore off-grid wind turbines that could account for an additional £170M in total revenue. 

Then of course there is Anemos which could be a significant single growth-driver for the company. 

We haven’t talked about margin-expansion yet, but this could be a significant growth-driver too.  By integrating the three distinct OM businesses discussed earlier, the company could find significant cost synergies and ‘eek out’ that all important—higher margin.

Then there is further M&A, as with the recent acquisition, the company can grow organically as it generates cash combined with debt facilities to find more discounted, revenue-generating and EBITDA positive opportunities, that suit sitting under the umbrella of a listed company like EGT.

The success of course comes down to Management and their execution and in that regard, the board consists of both Capital Markets and direct business expertise with board members having had several previous IPO successes.

Investment Thesis 

Before we talk about this, let’s just acknowledge some risks. 

EGT is a nano-cap AIM listed company, and such companies generally carry higher investing risk.  The key risks to consider are:

• Execution:  the Management team will need to deliver their plan and maintain the business as a going concern.
• Funding:  The company will need to diligently manage its finances so the business can operate and scale.
• Sector:  EGT is aligned to the ‘Green Energy’ sector, any Government policy changes in the future could impact the business.

Why should investors look at EGT?

EGT has acquired a significant multi-million-pound revenue generating business that is profit making for arguably little or no cost and is a result of the company’s Management team having done due-diligence and swooping in on a larger liquidation event.

The acquired businesses are in a growth-sector, ‘Green Energy’ and benefit from recent Government policy changes that could provide a sizeable uplift in the number of clients and contracts.

There is a credible plan to get to a medium-term £50M annual revenue target and double-digit EBITDA

If you consider the company’s Market Cap of c.£17M post fundraise and the example transaction where Renew Holdings purchased Full-Circle for £50M (~10x EBITDA) then the value proposition is compelling.  Using the same metrics, EGT achieving double digit EBITDA could imply a £100M+ Market cap valuation, some c.6+ times the current company valuation.

The company has stated publicly that it does not intend to do any further fundraising in the form of dilutive equity placings.  This is a big plus point for investors.  The company can grow organically as previously discussed, and any further M&A could be funded via cash, debt facilities or possible equity if it’s the right deal.

The company may also realise some further cash injections via sales of its mining project portfolio, such as Europe’s largest Rare Earth project in Sweden.  This wouldn’t necessarily be a huge ticket, so to speak—but a cash injection, nonetheless.

The company has stated it intends to implement a dividend policy which will be progressive targeting a 5% annual growth.

EGT appears to have pulled off a cracking deal with its acquisition of several growth businesses in the right sector and at the right time.  If Management execute and hit/exceed their targets, EGT offers compelling upside for investors entering at the current share price level—6.5p