Invinity Energy Systems (IES) H1 2024 earnings summary

Executive summary

• H1 2024 total income was £1.6m, with 4 MWh of sales closed and 6.2 MWh manufactured; revenue for 2024 is expected at GBP 5 million, with key projects (Everdura and LODES) delayed to 2025, supporting a GBP 25 million target for that year.

• Operating loss for H1 2024 was £11.4m, an improvement from £12.6m in H1 2023, with gross loss reduced to £1.1m.

• £57.4m was raised in May 2024, including £25m from UK Infrastructure Bank, boosting period-end cash to £49.2m.

• CEO transition: Larry Zulch retired, Jonathan Marren appointed CEO; new hires in commercial, sales, and market intelligence.

• Strategic focus remains on UK, Europe, and North America, with Australia and Asia addressed via partners.

Financial highlights

• H1 2024 revenue was £1.6m, with a gross loss of £1.1m and administrative expenses of £10.3m; cash and short-term investments at period end totaled £49.2m.

• First half revenue was second-half weighted, with OPALCO project delivered and Rincon modules manufactured and ready for shipment.

• Inventory and pre-paid inventory at period-end was £6.4m, supporting upcoming project deliveries.

• Loss per share for H1 2024 was 4.6p, improved from 8.2p in H1 2023.

• Company remains debt-free excluding leases.

Outlook and guidance

• 2024 revenue visibility is strong, with two key projects (OPALCO and Rincon) underpinning consensus forecasts; 2025 revenue target of GBP 25 million is largely covered by Everdura and LODES.

• General commercial launch and first pilot shipments of Mistral product on track before year-end.

• Production cost reduction program underway, aiming for improved margins in 2025 and beyond.

• 2024 revenue covered by signed contracts; 2025 materially covered; 2026 ~50% covered.

• Focus on closing deals from pipeline and ramping volume production in line with forecasts.