Merit Functional Foods and Partners Receive Co-investment From Protein Industries Canada - Financial Post - Canada News Media
Connect with us

Investment

Merit Functional Foods and Partners Receive Co-investment From Protein Industries Canada – Financial Post

Published

on


Funding will enable Merit to significantly expand its new and disruptive plant protein technology

WINNIPEG, Manitoba — Merit Functional Foods, in consortium with Pitura Seeds and The Winning Combination, announces today that it has received a co-investment from Protein Industries Canada (PIC), which will facilitate the rapid growth of the new company.

PIC is an industry-led, not-for-profit organization committed to positioning Canada as a global source of high-quality plant protein ingredients. It is one of Canada’s five innovation superclusters, which are government-initiated efforts to significantly boost Canada’s job market, GDP, groundbreaking research, and bold innovations.

“This investment is exciting and empowering for Merit as it grows as a company,” Merit Co-CEO Ryan Bracken said. “It is helping us overcome many of the hurdles that new companies typically experience and, instead, unlocking numerous opportunities for us – including job creation, technology expansion, and more.”

With PIC’s support, Merit can now rapidly expand its ability to meet market demand for its plant-based proteins, including pea and canola. Merit is using Burcon NutraScience’s patented and disruptive protein extraction technology, which has been in development for more than 19 years.

The funding will also help bolster throughput, increase efficiency, decrease energy consumption, and reduce Merit’s environmental footprint. Merit anticipates adding more than 240 jobs over the coming months and years to support its growth.

“This project is a great example of why the Innovation Superclusters Initiative was created,” Protein Industries Canada CEO Bill Greuel said. “The consortium consists of businesses from across the value chain coming together to create new products not currently produced anywhere else in the world. This will increase the demand and value of some of Western Canada’s biggest agricultural commodities – peas and canola – and create new products to sell to customers across the globe.”

Merit is currently building its plant-based protein processing facility, where it will produce the world’s first high-purity, non-GMO canola protein. This will create a new value-added revenue stream for canola grown in Western Canada, which was previously limited to the extraction and sale of canola oil.

Further partnerships will involve Merit Functional Foods and Pitura Seeds of Domain, Manitoba, to develop best practices as it relates to pea and canola genetics, as well as to build standards for seed cleaning specifications necessary to achieve optimal protein.

“Pitura Seeds is proud to partner in this new project, which will bring significant value to Western Canadian farmers,” said Tom Greaves, Pitura Seeds President and General Manager.

Additionally, a partnership with The Winning Combination of Winnipeg will help Merit assess and confirm pea and canola protein functionality and stability.

“We are very excited to be working with two local businesses to produce a Manitoba product that meets the growing global demand in this space,” said Mark Colley, Chief Operating Officer of The Winning Combination.

Merit is also collaborating with the Manitoba Food Development Centre to perform functionality and applications work on Merit’s various by-product offerings to understand how they can be utilized.

Protein Industries Canada and Merit held an event to formally announce the grant on Jan. 10 at Merit’s site in Winnipeg.

“The support we’ve received from Protein Industries Canada thus far has been outstanding, and it is a crucial driver for our continued growth,” Bracken said. “We’re entering the new year grateful and determined, and we’re eager to start offering our protein to the market when our facility is completed in the fourth quarter of 2020.”

For more information on Merit Functional Foods, visit meritfoods.com.

About Merit Functional Foods

Established in 2019, Merit Functional Foods is committed to exceeding expectations for plant-based protein, providing the market with the highest quality protein ingredients and blends that offer unmatched purity, exceptional taste, and excellent solubility. Merit is building a state-of-the-art 94,000-square foot production facility in Winnipeg, where it will produce a portfolio of pea and canola protein ingredients with exceptional functional and nutritional values. For more information, visit meritfoods.com.

About Protein Industries Canada

Protein Industries Canada is an industry-led, not-for-profit organization committed to positioning Canada as a global source of high-quality plant protein ingredients. It currently has 22 projects being evaluated for investment. The projects represent potential investment of more than $130 million and include projects from Alberta, Saskatchewan, Manitoba, and Ontario. For more information, visit proteinindustriescanada.ca.

About Pitura Seeds

Pitura Seeds owns and operates the largest family-owned seed processing facility in Western Canada. With a commitment to pedigreed seed that dates back to 1950 and spans three generations, today the company grows and contract produces more than 35,000 acres of top-quality cereals, pulses, and oilseeds on a yearly basis. Its industry-leading quality control, highly efficient seed processing and treating, and top-tier agronomy team deliver the high standards its customers have come to trust. For more information, visit pituraseeds.ca.

About The Winning Combination, Inc.

Founded in 1999, The Winning Combination is one of Canada’s largest manufacturers of natural health products and nutrition supplements. Fully compliant with all Canadian and international quality control standards, The Winning Combination manufactures all of its products in accordance with GMP guidelines. Manufacturing and selling products in both domestic and global markets, The Winning Combination is active in virtually all health-related business channels leading to a better lifestyle and improving the lives of people. For more information, visit winning-combination.com.

logo

Contacts

Erin Robbins
MarketPlace
erin.robbins@market-pl.com
+1-314-366-3562

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

What We Think Of Silicon Power Computer & Communications Inc.’s (GTSM:4973) Investment Potential – Simply Wall St

Published

on


Today we’ll evaluate Silicon Power Computer & Communications Inc. (GTSM:4973) to determine whether it could have potential as an investment idea. To be precise, we’ll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.

First, we’ll go over how we calculate ROCE. Then we’ll compare its ROCE to similar companies. Then we’ll determine how its current liabilities are affecting its ROCE.

What is Return On Capital Employed (ROCE)?

ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that ‘one dollar invested in the company generates value of more than one dollar’.

So, How Do We Calculate ROCE?

The formula for calculating the return on capital employed is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

Or for Silicon Power Computer & Communications:

0.068 = NT$125m ÷ (NT$2.5b – NT$681m) (Based on the trailing twelve months to September 2019.)

So, Silicon Power Computer & Communications has an ROCE of 6.8%.

See our latest analysis for Silicon Power Computer & Communications

Does Silicon Power Computer & Communications Have A Good ROCE?

One way to assess ROCE is to compare similar companies. It appears that Silicon Power Computer & Communications’s ROCE is fairly close to the Tech industry average of 8.1%. Separate from how Silicon Power Computer & Communications stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Investors may wish to consider higher-performing investments.

We can see that, Silicon Power Computer & Communications currently has an ROCE of 6.8%, less than the 11% it reported 3 years ago. This makes us wonder if the business is facing new challenges. You can see in the image below how Silicon Power Computer & Communications’s ROCE compares to its industry. Click to see more on past growth.

GTSM:4973 Past Revenue and Net Income, January 27th 2020

When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. You can check if Silicon Power Computer & Communications has cyclical profits by looking at this free graph of past earnings, revenue and cash flow.

Silicon Power Computer & Communications’s Current Liabilities And Their Impact On Its ROCE

Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.

Silicon Power Computer & Communications has total liabilities of NT$681m and total assets of NT$2.5b. As a result, its current liabilities are equal to approximately 27% of its total assets. This is a modest level of current liabilities, which would only have a small effect on ROCE.

The Bottom Line On Silicon Power Computer & Communications’s ROCE

That said, Silicon Power Computer & Communications’s ROCE is mediocre, there may be more attractive investments around. But note: make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a P/E ratio below 20).

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Should Binasat Communications Berhad’s (KLSE:BINACOM) Weak Investment Returns Worry You? – Simply Wall St

Published

on


Today we are going to look at Binasat Communications Berhad (KLSE:BINACOM) to see whether it might be an attractive investment prospect. In particular, we’ll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business.

Firstly, we’ll go over how we calculate ROCE. Then we’ll compare its ROCE to similar companies. And finally, we’ll look at how its current liabilities are impacting its ROCE.

Understanding Return On Capital Employed (ROCE)

ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. In general, businesses with a higher ROCE are usually better quality. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that ‘one dollar invested in the company generates value of more than one dollar’.

So, How Do We Calculate ROCE?

The formula for calculating the return on capital employed is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

Or for Binasat Communications Berhad:

0.051 = RM4.8m ÷ (RM107m – RM11m) (Based on the trailing twelve months to September 2019.)

Therefore, Binasat Communications Berhad has an ROCE of 5.1%.

See our latest analysis for Binasat Communications Berhad

Does Binasat Communications Berhad Have A Good ROCE?

ROCE can be useful when making comparisons, such as between similar companies. In this analysis, Binasat Communications Berhad’s ROCE appears meaningfully below the 11% average reported by the Telecom industry. This performance could be negative if sustained, as it suggests the business may underperform its industry. Regardless of how Binasat Communications Berhad stacks up against its industry, its ROCE in absolute terms is quite low (especially compared to a bank account). Readers may wish to look for more rewarding investments.

Binasat Communications Berhad’s current ROCE of 5.1% is lower than 3 years ago, when the company reported a 36% ROCE. This makes us wonder if the business is facing new challenges. You can click on the image below to see (in greater detail) how Binasat Communications Berhad’s past growth compares to other companies.

KLSE:BINACOM Past Revenue and Net Income, January 27th 2020

When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. If Binasat Communications Berhad is cyclical, it could make sense to check out this free graph of past earnings, revenue and cash flow.

Do Binasat Communications Berhad’s Current Liabilities Skew Its ROCE?

Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counteract this, we check if a company has high current liabilities, relative to its total assets.

Binasat Communications Berhad has total assets of RM107m and current liabilities of RM11m. As a result, its current liabilities are equal to approximately 11% of its total assets. This is a modest level of current liabilities, which will have a limited impact on the ROCE.

What We Can Learn From Binasat Communications Berhad’s ROCE

While that is good to see, Binasat Communications Berhad has a low ROCE and does not look attractive in this analysis. Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with modest (or no) debt, trading on a P/E below 20.

I will like Binasat Communications Berhad better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Alternative assets investment trust launches £200m UK float – City A.M.

Published

on


An investment trust focused on alternative assets and asset managers today outlined plans for a £200m float in London, claiming to offer a new model for investors to access the sector.

Cabot Square Alternatives (ALTS) will invest directly in a portfolio of infrastructure, property, and specialist debt, as well as in asset managers managing these holdings. 

Read more: UK active fund managers suffer bruising 2019

According to its investor prospectus, ALTS will target dividends of three per cent in its first year and five per cent in its second and annual total net asset value returns of between eight and ten per cent. 

It will be managed by London-based private equity firm Cabot Square Capital, which has £760m assets under management.

Cabot Square said it believes “there is a shortage of capital and a lack of expertise in the market of investing in infrastructure and property investments with a value between £1 million and £25 million, which can result in attractive risk adjusted returns for those willing and able to invest in this range.”

“ALTS represents a new model for investors to access returns from investing directly in attractive infrastructure and property alternative assets as well as share in the value creation of specialist alternative asset managers by building alternative asset platforms,” said Cabot Square Capital fund manager and partner Keith Maddin.

As well as raising £200m through the initial placing, ALTS announced the establishment of a share placing programme worth up to £500m.

Cabot Square said the investment trust had already received non-binding commitments of approximately £30m from three investors. 

Read more: The number of floats in London dropped to a decade-low last year

Placing for ALTS is scheduled to close on 13 February, with shares admitted to the London Stock Exchange five days later. 

Cantor Fitzgerald Europe is acting as sole bookrunner for the placing, with Kepler Partners acting as intermediaries offer adviser. BDO is acting as sponsor for the initial issue and admission. 

Let’s block ads! (Why?)



Source link

Continue Reading

Trending