Fund Manager Summary
The fund managers believe that FBR Ltd presents a significant investment opportunity following its recent announcement of a binding suite of agreements for a US Demonstration Program with CRH Ventures Americas, Inc. This partnership could lead to a US joint venture and the potential establishment of a US$40m rolling loan facility to fund the construction of Hadrian X® units. In their opinion, the projected revenue from deploying 300 units at 70% utilization exceeds US$1.1B annually, with gross margins anticipated to surpass 50%. However, the need for FBR to raise ~$12m for operational funding has led to a decline in share price, which may present a buying opportunity for investors willing to navigate the current volatility.
Source: Trading View
Commentary From The Managers
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Saville Capital
31 Mar 2025
$0.01
Summary
- Saville Capital sold their investment in FBR due to the lapsed option agreement with CRH Ventures.
- There was no imminent deals to fund FBR's entry into the US construction market.
- Despite their belief in FBR's technology, Saville Capital decided to exit the position.
- They will remain close observers of FBR's activities, especially concerning Samsung.
- With emerging investment opportunities in the market, Saville Capital felt their capital could be better utilized elsewhere.
- FBR is working towards an agreement with Samsung and seeking other partners in the US.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Saville Capital
31 Mar 2025
$0.01
- Saville Capital sold their investment in FBR due to the lapsed option agreement with CRH Ventures.
- There was no imminent deals to fund FBR's entry into the US construction market.
- Despite their belief in FBR's technology, Saville Capital decided to exit the position.
- They will remain close observers of FBR's activities, especially concerning Samsung.
- With emerging investment opportunities in the market, Saville Capital felt their capital could be better utilized elsewhere.
- FBR is working towards an agreement with Samsung and seeking other partners in the US.
Summary
Saville Capital
28 Feb 2025
$0.02
- Saville Capital highlights the completion of the Demonstration Program with positive feedback from PulteGroup.
- FBR did not receive formal notice from CRH regarding the JV option, which is seen as a disappointment.
- The introduction of a new CEO at CRH may have influenced its decision not to proceed with the joint venture.
- FBR is now tasked with seeking other potential partners within the US building sector.
- Despite setbacks, Liebherr remains committed as a manufacturing partner for FBR.
- The search for a new partner will require more time and working capital.
- FBR successfully demonstrated its technology to Samsung Heavy Industries on February 24.
- The demonstration aims to assess the feasibility of applying FBR’s technology in the shipbuilding industry.
- Negotiations for a business agreement between FBR and SHI are set to begin, focusing on joint development and prototyping.
Summary
Saville Capital
31 Dec 2024
$0.04
- FBR announced the completion of the Demonstration Program with CRH Ventures in Florida.
- Nine homes were constructed using the Hadrian X® and concrete masonry blocks from CRH Ventures.
- One home was built in a single day, confirmed by independent structural engineers.
- The completion of the program triggers a 45-day period for CRH to exercise an exclusive joint venture option with FBR starting January 2, 2025.
- This option includes a US$400k payment to FBR upon exercise.
- FBR and CRH aim to build additional homes for major US builders outside the program.
- CRH, a major construction materials company, has a market cap of ~US$60B.
- A US$40m rolling loan facility will support the construction of Hadrian X® units once the option is exercised.
- The joint venture plans to execute a binding conditional purchase order for 20 units and has options for more units, subject to metrics.
- Exclusive concrete block supply from CRH subsidiaries will enhance profit sharing from the JV.
- Revenue potential of deploying 300 units at 70% utilisation exceeds US$1.1B annually.
- Target gross margins are expected to exceed 50%.
- Completion of the program has not yet influenced FBR’s share price, possibly due to perceived risks.
- FBR is positioned for significant value creation for shareholders moving forward.
Summary
Saville Capital
30 Sept 2024
$0.05
- FBR has launched its US Demonstration Program, achieving a milestone by completing the first home walls in Florida.
- This completion represents the first international build by Hadrian X®.
- Collaboration with New Century USA, a participating builder, showcases the technology's adaptability.
- FBR plans to construct walls for four additional homes for New Century in the Demonstration Program.
- Christopher Alan Homes, another builder in the program, adds credibility as the largest homebuilder in Southwest Florida.
- The Demonstration Program aims to highlight the versatility and compliance of FBR's technology across different home styles.
Summary
Saville Capital
31 Aug 2024
$0.04
- FBR raised $12.5m via a placement to fund its working capital during important phases for US JV Option exercise with CRH Ventures.
- Completed a Site Acceptance Test at Fort Myers facility, triggering a US$600k payment, yet stock declined from ~$0.05/share to placement price of $0.038.
- Currently undergoing a US Demonstration Program, constructing five houses with potential for five additional houses funded by CRH Ventures.
- Houses will be certified by an independent structural engineer upon completion.
- Completion will yield US$400k from CRH Ventures and begin a 45-day period for exercising joint venture option for Wall as a Service®.
- Significant event anticipated for FBR upon formation of the joint venture.
Summary
Saville Capital
31 July 2024
$0.05
- Saville Capital continues to hold due to FBR's surge on the arrival of Hadrian X® in Florida.
- The surge is viewed as a delayed reaction to earlier positive developments and a capital raising in challenging markets.
- In January, FBR announced a binding suite of agreements for a US Demonstration Program with CRH Ventures Americas, Inc.
- CRH is a major player with a market cap of ~US$55B and is one of the largest construction materials companies globally.
- On exercising the joint venture option, a US$40m rolling loan facility will fund construction of Hadrian X® units.
- Orders for 20 units under a binding conditional purchase order are anticipated, with additional conditions for further orders.
- Revenue potential of 300 units at 70% utilization exceeds US$1.1B annually, with target gross margins over 50%.
- FBR may need to raise additional capital to fund operations during the Demonstration Program.
- Upon clearing financial hurdles and exercising the JV Option, FBR's value could increase significantly from current levels.
Summary
Saville Capital
28 Feb 2024
$0.02
- FBR continues to trade below its recent capital raise price.
- Successful completion of the Factory Acceptance Test for CRH has triggered a second milestone payment of US$800k.
- The test structure achieved an effective lay rate of 330 blocks/hour, exceeding the required 285 blocks/hour.
- Preparations are underway to ship the Hadrian X® to Florida for the Site Acceptance Test.
- This will precede a 5 – 10 house Demonstration Program.
- FBR’s Hadrian X® will be serviced at Liebherr’s facilities in Florida, facilitating knowledge transfer.
- This collaboration aims to accelerate manufacturing ramp up following a long-term Manufacturing and Commercialisation Agreement.
Summary
Saville Capital
31 Jan 2024
$0.02
- FBR has executed a binding suite of agreements for a US Demonstration Program in Florida to construct external walls of 5-10 single storey houses.
- Partnership established with CRH Ventures Americas, Inc., which is part of a NYSE-listed company with a market cap of ~US$50B.
- CRH is one of the largest construction materials companies globally, with operations in the US, Europe, and Australia.
- Upon exercising the exclusive Option, a US$40m rolling loan facility will be set up to fund construction of Hadrian X® units.
- Initial binding conditional purchase order for 20 units will be executed, with potential additional orders based on utilisation and gross margin metrics.
- CRH subsidiaries will supply concrete blocks exclusively to the US joint venture, sharing profits as units are hired out.
- The revenue potential from deploying 300 units at 70% utilisation is estimated at over US$1.1B annually, with target gross margins over 50%.
- FBR needed to raise approximately $12m to continue operations amid share price decline due to capital raise challenges.
- Saville Capital continues to hold investments in FBR due to the long-term potential of these agreements and revenue generation capabilities.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"The potential partnership with CRH Ventures hints at a transformative leap for FBR Ltd, yet the capital raise casts a shadow on immediate prospects. It's a classic case of high stakes in a micro-cap arena, where ambition meets the harsh reality of funding challenges."
Last Updated: 31 Mar 2025
Query The Data
Frequently Asked Questions
Who is investing in FBR Ltd (ASX:FBR)?
Fund managers including Saville Capital have invested in FBR Ltd (ASX:FBR).
Why do fund managers invest in FBR Ltd?
Fund managers are investing in FBR Ltd due to its strategic partnership with CRH Ventures Americas, Inc., a major player in the construction materials sector. This collaboration includes a US Demonstration Program for building homes, with a potential revenue exceeding $1.1 billion annually from deploying 300 units of their Hadrian X® technology. The agreements also outline a significant loan facility and exclusive supply arrangements, positioning FBR for substantial profit-sharing opportunities. Despite recent capital raises impacting share price, the long-term growth potential and favorable market conditions make FBR an attractive investment.
What happened to FBR Ltd (ASX:FBR)?
There have been no recent updates from fund managers regarding FBR Ltd although fund managers including Saville Capital have previously commented.