Invinity Energy Systems (IES) H2 2023 earnings summary

Executive summary

• Achieved a 511% year-over-year increase in revenue to £22.0m, driven by an 800% rise in product shipments and significant project deliveries across multiple continents.

• Signed or awarded funding for 136.7 MWh of orders for 2024/25 delivery, including 100 MWh of Mistral orders.

• Commercial pipeline grew 170% YoY to 6.6 GWh as of June 2024, reflecting strong market demand.

• Secured a clean going concern statement from new auditors, enhancing credibility with customers and suppliers.

• Transitioning from a development-phase business to a sustainable, profit-generating model, with a focus on launching the new Mistral product and capex-light manufacturing expansion.

Financial highlights

• Revenue reached £22.0 million in 2023, a substantial increase from the prior year, exceeding guidance.

• Loss from operations increased to £22.8m, mainly due to legacy loss-making projects, while most new projects achieved flat or positive gross margins.

• Cash outflows reduced by 10% to £19.7m due to improved working capital management; admin costs remained broadly unchanged year-over-year.

• Staff costs rose due to increased headcount, reflecting investment in operational and R&D capabilities.

• Ended the period debt-free, with a net cash position of £53.2 million after a £57.4m fundraise and repaying the Riverfort facility.

Outlook and guidance

• Mistral product launch expected by year-end 2024, with ongoing pilot builds and customer-focused testing.

• Targeting net cash generation and profitability within two years.

• Commercial pipeline has grown significantly, with average opportunity size now over 100 MWh and increasing interest from global customers.

• Focus on scaling manufacturing and leveraging a capital-light license and royalty model for non-core markets.

• Focus on closing advanced pipeline opportunities, especially higher-value Mistral sales.