Egm in the X-ray: the electric Tenax saw a 38% leap in revenue

These vehicles, like the vehicles of Tenax International, are 'native electric' and not electrified ex post. This results in lower weight (and therefore consumption) than electrified vehicles, and very low voltage, 48V batteries, which also result in lower maintenance costs than diesel-powered vehicles, which Tenax no longer produces. The business perimeter of Esagono Energia Srl subject to the transaction includes assets of €1.1 million, including the approvals of vehicles in the range, as well as technological know-how, use of the brand name and employment contracts relating to the 17 employees of the acquired company, as well as existing distribution and sales contracts. Subsequently, Tenax International, after the approval of the financial statements as at 31/12/2027 of the acquired company (i.e. in 2028), will be obliged to take it over for a fixed consideration of €760,000, from which the rental fees paid over the years will have to be deducted as a "price account". There is also a variable portion that will amount to up to 40% of the ebit of the financial year 2027.

For the financial year 2024, the weight of Esagono International Srl on Tenax International's results is not expected to be very high, mostly translating into a higher incidence of labour costs (at the end of 2023 there were 76 employees, so an increase of 17 is percentually significant); in addition, in June the contract of Tenax employees was renewed with a fixed monthly salary increase of EUR 21, an hourly productivity allowance increased to 14 cents per hour (plus EUR 50 one-off for 2024) and an annual performance bonus of up to EUR 1.100 euro as well as other minor benefits.

But remember that for Tenax normally the second half of each financial year is marked by higher revenues and margins than the first half of the year, and that there will be a contribution from the new Electra 5.0 machines.

From 2025, of course, everything changes, with the expansion of the production range to segments not previously covered by the company. Actually, as for cars, also for sweepers, street-washers, pick-ups and shuttles our country is unfortunately not in the front row. In 2023, 94% of Tenax International's revenues were earned abroad (the company is present in 45 countries both directly and with a dealer network), and last year the markets of North America, South Korea, Germany, the Middle East and Australia were developed in particular, although no less than 115 machines out of the 162 sold in total (they were 131 in 2022) were placed on European markets. In this sense, the situation will not be very different after the creation of Esagono International Srl, since Esagono Energia also sells mainly in the EU area and mainly to municipalities, as is the case with Tenax.

Tenax International has a relatively high free float for a company in the Euronext Growth Milan (28.44% of the share capital), and since the IPO an important investment company (Algebris Investments Ireland Ltd.) has been present in the shareholding structure, which currently holds a 5.12% stake. The trading volume is unfortunately very low, but the market has shown its belief in the company, given that a total of 77% of the warrants issued on the occasion of the IPO were exercised in the three exercise periods, with total proceeds of 1.26 million.

What is missing for Tenax International to further attract the attention of investors? Probably just more emphasis on its 'green' vocation, since not only are its products environmentally friendly, but they are also manufactured using 'zero impact' technology in a factory powered by a 50 kW photovoltaic system. From a social point of view, moreover, Tenax is among the supporters of Rugby Parma, in particular of mini-rugby players up to 12 years of age. It would be a natural candidate for a sustainability report.