Invinity Energy Systems (IES) H2 2024 earnings summary

Executive summary

• 2024 marked a transition year, shifting from VS3 to ENDURIUM, with the first ENDURIUM shipments and strong customer feedback, especially from Gamesa Electric.

• FY24 saw a -77% year-over-year revenue decline to £5.0 million, reflecting the product transition and initial ENDURIUM sales from La Plana.

• EBITDA loss improved 20% year-over-year to £18.0 million, with net loss slightly reduced to £22.8 million.

• Total cash and investments rose to £35.4 million, and the group remains debt free.

• Strategic focus is on cost reduction, scaling manufacturing, and leveraging partnerships to access global opportunities.

Financial highlights

• Revenue and grant income dropped from £22.0 million in 2023 to £5.0 million in 2024, mainly due to the transition from VS3 to ENDURIUM and sales cycle timing.

• Gross loss increased to £3.5 million, mainly due to higher warranty costs and new facility overheads.

• Gross margin loss improved from -20% to -8% year-over-year.

• EBITDA loss improved by 20% year-over-year after adjusting for R&D and one-off expenses.

• Year-end cash position was GBP 35 million, with GBP 5 million ring-fenced for LDES projects.

Outlook and guidance

• Projected year-end 2025 cash balance is GBP 8–13 million, with cash burn at about GBP 2 million per month.

• Substantially all projected 2025 revenue is covered by four major projects currently in manufacturing.

• Large-scale projects in negotiation for 2026 and beyond, with global opportunities in the U.K., U.S., Europe, Asia, and Australia.

• Anticipates significant volume growth through 2030, driven by participation in global LDES procurement schemes.

• ENDURIUM development and cost-down roadmap expected to enhance competitiveness and expand market reach.