Invinity Energy Systems#: Full Year Results 2019
Performance on Track
The Group has today announced Full Year results for the period ending December 31st, 2019. The financial numbers reported are primarily for previously AIM listed redT energy (LON:RED). RED merged with US-based Avalon Battery in April 2020 to create Invinity Energy Systems plc (IES LN). An equity fund raising of £8.0m was also undertaken in April 2020 for the new combined entity. IES is seeking to achieve scale in battery storage markets for utility, industrial and commercial applications. IES issued a Trading Update on June 15th, 2020 and VSA Capital initiated full research coverage on 30 June 2020.
Growth Opportunity
The £8.0m raised through the issue of new shares was to fund development of IES including investment in R&D, marketing and also working capital to increase volume to meet an identified project pipeline of just over 4,000 units (circa 161MWh). We estimate unit volumes to rise to 1,250 in 2021 and 3,200 in 2022, driving revenues of £21.2m and £52.2m.
Breadth of Applications
The IES Vanadium Flow Battery (VFB) has been designed to provide a standardised module that can be produced in high volume. There are already over 160 in use. In the June 2020 Trading Update, the Group announced that since the beginning of 2020, it has received orders for 1.7 MWh of its VFBs, comprising 40 VFB modules. The anticipated revenue contribution of these sales, according to IES, is approximately £1.1m including the VFBs themselves, ancillary components and related services. The recent business wins reflect breadth of markets with orders secured from a global retailer, U.S. municipal utility and leading Asia-based energy storage project developer.
Phil Smith, Equity Analyst, Alternative Energy | T: +44 (0)20 3617 5187 | E: psmith@vsacapital.com
VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com
This email is intended solely for the named recipient. It may contain privileged and/or confidential information. If you are not one of the intended recipients, please notify the sender immediately, and destroy this email: any disclosure, copying to any person or any action taken or omitted to be taken in reliance on this e-mail, is prohibited and may be unlawful. Any views expressed in this message are those of the individual sender, except where specifically stated to be the view of VSA Capital Limited, its subsidiaries or associates. Whilst all efforts are made to safeguard inbound and outbound emails, VSA Capital Limited and its subsidiaries or associates cannot guarantee that attachments are virus-free or compatible with your systems and do not accept any liability in respect of viruses or computer problems experienced.
VSA Capital Limited will use your personal information to administer your account in order to provide any products and services you have requested from us. Your personal information will be kept secure and will not be shared with any other party unless you provide consent to that effect.
VSA Capital Limited is Authorised and Regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
The Company is registered in England with company number 2405923 at New Liverpool House, 15-17 Eldon Street, London EC2M 7LD.
Please consider the environment before printing this e-mail
unsubscribe from this list update subscription preferences