€65m market cap

€1.29 last close

Orège is a clean-tech company founded in 2006 and listed on Euronext in 2013. It has developed an innovative, patented technology (SLG) to significantly reduce sludge treatment costs and improve environmental sustainability of the treatment process.

Investment summary

Orège’s proprietary and patented SLG technology reduces sludge treatment costs for utilities by up to 80%, with a strong investment case for clients (payback period <3 years) and large environmental sustainability advantages. We estimate a €439m annual addressable market for SLG technology in North America, UK, Germany and France. On 26 June 2019 Orège announced a substantial rights issue (1.8x market cap) to strengthen its balance sheet and accelerate commercial development. The trading update shows a significant ramp-up in orders in H1 and our FY19 revenue forecast (2.8x FY18 sales) appears achievable.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.7 (10.1) (13.5) (72.5) N/A N/A
2018A 2.3 (7.7) (10.9) (58.5) N/A N/A
2019E 6.3 (5.9) (9.8) (52.8) N/A N/A
2020E 11.0 (3.8) (8.5) (45.4) N/A N/A
Industry outlook

SLG offers a technological innovation to a market characterised by well-established and consolidated technologies. Frost&Sullivan estimates the market for the business areas where Orège operates generates $9.5bn revenues pa (excluding services associated with the equipment sale, which we estimate represent 50–100% of the equipment business). Global Water and Intelligence estimates the global wastewater market is growing 5–6% pa.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net debt (€m) 55.4
Forecast gearing ratio (%) 337
Price performance
Actual (3.7) (24.9) (60.1)
Relative* (5.1) (25.1) (60.7)
52-week high/low €3.3/€1.2
*% relative to local index
Key management
Pascal Gendrot CEO
George Gonsalves CFO