Kontrol Technologies – Seizing a huge ground floor opportunity amid the global rush to stamp out energy waste in buildings
There is an enormous number of commercial buildings in North America.
In fact, these structures are thought to cover roughly 90 billion square feet in total—enough to envelop Los Angeles County more than two times over.
Collectively, these buildings use a lot of energy.
It’s hardly a surprise—given their scale, they probably need to.
But while this may be the case, there are also severe problems when it comes to the way in which this energy is actually consumed…
You see, it’s currently estimated that around 30% of the energy used by North America’s commercial buildings is wasted.
Not only that, but it’s now thought that these buildings are also responsible for up to 40% of the region’s greenhouse gas emissions.
Whatever way you look at it, it’s an unsustainable situation.
And it becomes all the more concerning when you consider that, by 2050, the goal is for every commercial building in the world to achieve net-zero energy use.
It’s not as if the industry can hide from these problems.
After all, it’s thought that buildings will be responsible for consuming more than half of the world’s energy by as soon as 2030.
So, with close to a third of that energy currently being wasted, there’s still some way to go before the problem is fixed.
Excitingly, these issues have given rise to an enormous opportunity in making commercial buildings cleaner and more efficient when it comes to energy consumption.
In fact, the addressable market for such ‘smart buildings’ is already thought to be worth more than $100 billion a year in the US and $600 billion globally.
And this is why Kontrol Technologies represents such an exciting investment right now.
You see, thanks in part to the transformational acquisition it has just completed, which adds an order book worth in excess of $155 million to its operations…
Kontrol is poised and ready to claim a very significant slice of the Smart Building market as it continues to boom.
As it does so, it will be the smart investors who got in on the ground floor who are most likely to enjoy game-changing returns.
To learn more about how the deep value deal that has just added a $155 million order book to Kontrol Technologies’ roster, READ OUR EXCLUSIVE REPORT
Blue-chip clients and powerful data insights—Kontrol’s strong fundamental position
Before considering Kontrol’s recent acquisition, it’s worth noting that the company already represents a highly attractive investment proposition.
Indeed, by deploying the latest building automation devices and patented energy-monitoring technology, Kontrol has not only been able to establish a portfolio of major blue-chip clients paying out strong recurring revenues….
But, thanks to the data it collects, it is consistently able to improve the quality of its service by increasing its own knowledge of how to reduce costs, create better energy efficiencies, and lower GHG emissions.
Indeed, thanks to the solid foundation built along with the new acquisition, Kontrol anticipates 2021 revenues of between $33 and $35 million.
That’s more than double the $13 million it generated in the 2020 financial year.
But still, though this sum is already extremely promising, the fact is that Kontrol is now ready for much bigger things.
In fact, the business has even identified a clear path to $100 million-a-year turnover.
How does it plan to do deliver on this?
Well, for one thing, Kontrol expects to enjoy significant natural demand growth from customers looking to make their existing buildings more energy-efficient and ‘smart’.
But, perhaps most excitingly, the business is also making key strategic acquisitions that accelerate its revenue growth even further.
As we’ll see next, the company has just taken a major step forward in this area, closing on a deal that is not only its biggest to date but also puts it well on its way to hitting its ambitious turnover targets.
The recent acquisition of Global HVAC could be a game-changer in itself
Kontrol is well-known for making smart and strategic acquisitions.
The focus has always been on value, with the company searching out the ideal combination of solid cash flows and an attractive valuation.
It’s also keen to always ensure the smoothest transition possible and the most effective integration of its own technology and practices.
The approach was already well established, having underpinned a total of five smart deals throughout Kontrol’s history.
But it has never been used to greater effect than with the group’s most recent acquisition of a more traditional building solutions business called Global HVAC & Automation.
Indeed, this deal stands to be an absolute game-changer for Kontrol that could transform its bottom line like never before.
Well, the simple fact of the matter is that with the consolidation of Global HVAC & Automation, Kontrol has established an order book that’s worth in excess of $155 million over the next three years.
It’s worth taking note of that figure again:
Make no mistake, for a company of Kontrol’s relativelysmallsize right now, this kind of additional revenue—even if it is only partly realized—could be hugely transformative.
But there’s actually an even more exciting angle here that could see the true turnover from this acquisition exceed even this already significant potential.
You see, until now, Global HVAC has focused almost entirely on larger, one-off projects that generate substantial, but still only one-off revenues.
By the way, in case you’ve not come across the term before, HVAC refers to heating, ventilation, and air conditioning. These are the key factors that contribute to a building’s overall ‘energy consumption and health’ in energy efficiency terms.
Here’s the thing, though…
Being a more traditional, family-run business, Global HVAC has not really exploited the opportunity to provide ongoing software and services to clients that would generate ongoing, recurring revenues.
Kontrol is in the perfect position to change this, and it intends to.
By integrating its own smart software with the traditional heating, ventilation, and air conditioning services offered by Global HVAC, Kontrol could potentially turn the firm’s $155 million order book into an ongoing source of recurring revenue that could fuel huge exponential growth.
And all this for an acquisition cost of just $7 million, along with an additional vendor performance payment equal to 45% of adjusted three years cumulative earnings after tax in excess of $4.5 million.
Not only does Kontrol already have this cash on its balance sheet, but—all in—it equates to an acquisition price of just 0.25X revenues!
Everything adds up to make Kontrol an extremely attractive addition to any portfolio.
But the investment casedoesn’t even end there.
Indeed, we’ve still not even considered one of the most exciting projects the company is currently working on…
Kontrol’s real-time air-analyzer and early viral detection technology represents yet another exciting catalyst for growth
The natural tailwind from the growing demand to make buildings smarter and more energy-efficient is one thing that will excite investors about Kontrol.
The recent acquisition of Global HVAC and the $155 million order book is undoubtedly another.
But the fact is, this organizationis also sitting on a ground-breaking piece of technology that could change the way smart buildings work and provide a whole new level of protection to people working in buildings all across North America and beyond.
It’s called BioCloud, and it is designed to to detect airborne pathogens like viruses, bacteria, and fungi.
Even without the recent coronavirus pandemic, this would be a huge deal. But now, of course, it’s bigger than ever.
In fact, the technology has already been extremely well received and its development has attracted around $2.5 million in grants from the National Research Council of Canada and the Ontario Government.
For a closer look at the blue-sky potential presented by BioCloud, the game-changing air and viral monitoring technology developed by Kontrol Technologies, READ OUR EXCLUSIVE REPORT
And be clear, this is a technology that is actively being used now.
BioCloud is not something still waiting to be finalized…
It’s not pie-in-the-sky…
It’s already being utilized by customers like the Canadian Olympic Committee, which is using it to help safeguard Team Canada at the Tokyo Olympics.
As you’d expect, the market for real-time viral detection in the air around us is set to explode in the coming months and years, and will surely become a multi-million—if not billion-dollar—industry in itself.
So, with its BioCloud units already making waves in the industry and getting noticed, Kontrol looks set to add yet another potentially huge revenue stream to its bottom line.
The picture here is clearly a bright one, and there is no wonder the company has a good level of internal share ownership, with the team behind the scenes convinced of its future success.
Indeed, unlike so many smaller companies…
Kontrol is already using organic and acquired growth to move rapidly towards the $100 million a year revenue mark, has already established a stable of strong blue-chip clients, and has already fixed the cash flow it needs to fund blue-sky projects like BioCloud.
This all makes for a very attractive investment on a fundamental level.
So, with numerous potential catalysts on the horizon, today represents the ideal opportunity for smart investors to grab Kontrol with both hands.
Indeed, if they wait too long, they may very well find that this undiscovered gem has already entered the radar of mainstream investors…
IMPORTANT NOTICE AND DISCLAIMER
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Kontrol Technologies Corp. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred sixty-six thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.
CHANGES IN SHARE TRADING AND PRICE
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.
NO OFFER TO SELL OR BUY SECURITIES
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.
Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.
This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.
NO FINANCIAL ADVICE
The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.
FORWARD LOOKING STATEMENTS
This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.
INDEMNIFICATION/RELEASE OF LIABILITY
By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.
All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.
valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.
ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.