Invinity Energy Systems (IES) H1 2024 earnings summary

Executive summary

• Leadership transition with Jonathan Marren appointed CEO, following the retirement of Larry Zulch, and new hires in commercial and sales leadership to address issues from the September trading statement.

• Total income for H1 2024 was £1.6m, down from £14.8m in H1 2023, reflecting timing of project deliveries and revenue recognition, with 4 MWh of sales closed and 6.2 MWh manufactured.

• Completed a £57.4m fundraise in May 2024, including £25m from UK Infrastructure Bank, boosting cash to £49.2m and supporting manufacturing expansion and working capital.

• Revenue recognition delayed as key projects (Everdura and LODES) shifted from 2024 to 2025, impacting near-term financials.

• Emphasis on cost reduction, operational efficiency, and leveraging government support for long-duration storage.

Financial highlights

• H1 2024 revenue was £1.6m, with a gross loss of £1.1m and administrative expenses of £10.3m; loss from operating activities was £11.4m, an improvement from £12.6m in H1 2023.

• Cash and short-term investments totaled £49.2m as of 30 June 2024, up from £12.9m in H1 2023; company remains debt-free except for leases.

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

• 2024 revenue forecast at GBP 5 million, mainly from two projects; 2025 target at GBP 25 million, largely covered by Everdura and LODES.

• Net assets increased to £77.3m as of 30 June 2024.

Outlook and guidance

• Focus on delivering 2024 and 2025 revenue targets with conservative forecasts and improved visibility, with 2024 revenue covered by signed contracts and 2025 materially covered.

• Launch of Mistral product for general sale before year-end, with ongoing cost-down initiatives and production cost reduction program underway.

• Anticipation of further regulatory support in the U.K. for long-duration storage, potentially boosting future demand.

• Commercial pipeline deals targeted to support volume ramp and revenue forecasts, with focus on closing deals and ramping production.