Invinity Energy Systems Share Discussion Threads

[wheeze] 27/6/2024 08:46

I agree it's high time Zulch left - he has presided over a collapse in the share price

[owenski] 27/6/2024 08:29

It was, but now you've turned up ;-)

[chester3] 27/6/2024 08:24

Thought this thread was troll free!!

[hamidahamida] 27/6/2024 08:18

Shockingly Company has already burnt through close to 4 million in 1 month alone since the May raise

[owenski] 27/6/2024 08:15

Indeed, quite concerning really.

[sleveen] 27/6/2024 08:07

Appears more MW being sold in 2024, inferring a larger loss for 2024 v 2023.

[owenski] 27/6/2024 07:59

Not expecting the share price to open up here. Cheap gets cheaper.

[indiestu] 27/6/2024 07:56

Fitting out and staffing the new factory I guess. Add that expense to the neutral or negative product margin.

[owenski] 27/6/2024 07:51

They make a loss on everything they sell, this is still an unsustainable business.

Loss making companies always seem to produce extraordinary amounts of waffle from every member of the board, biblical amounts of the stuff, makes up for the fact that they make no money.

Their salvation lays in getting Mistral out there - still waiting - and in the capex light royalty business. I think it could still be well over a year before they become cash positive.

Results marked as going concern for one year only.

Can't see a reason to rush in here.

[purchaseatthetop] 27/6/2024 07:45

GBCol.

“The Company has a strategic aim to move to delivering projects at positive gross margins and this positive trend continues with the majority of the gross loss being attributed to projects signed before 2022 and with the more recent projects being at broadly flat or small positive gross margins at the project level (before allocation of facility costs).”

Missed a bit. The facility costs. What are they? How big?

[guppygould] 27/6/2024 07:42

LLM Summary is as follows:

Invinity Energy Systems reported a substantial 511% increase in total income to £22.0 million in 2023, compared to £3.6 million in the previous year, primarily due to an eightfold increase in products shipped. The company sold or was awarded funding for 136.7 MWh of batteries, with 99.6 MWh related to its upcoming Mistral product, set for launch later in the year. The global pipeline of commercial interest surged to 6.6 GWh, indicating heightened market interest. Despite a loss from operations of £22.8 million, there was a 10% reduction in cash outflows to £19.7 million, and the company ended the period debt-free with £53.2 million in cash, bolstered by a significant fundraising round. Invinity's commercial pipeline showed significant growth across all categories, with a total percentage increase of 195% from May 2023 to June 2024. CEO Larry Zulch emphasized the company's progress and its focus on moving towards positive cash flow with a new product and a scalable, low-capital expenditure strategy.

[gbcol] 27/6/2024 07:35

Purchaseatthetop re 6863.

That’s not correct.
“The majority of the 2023 gross loss relates to projects signed before 2022. Margin improvement is a key strategic objective and more recent projects are forecast to achieve broadly flat or small positive gross margins at the project level”


More importantly, they have stated that mistral will have a 25-30% improvement in gross margin.

[indiestu] 27/6/2024 07:34

Looking at the cash. If we assume there was nothing left in the pot at the time of the raise they have spent 4 million in 30 days! At this rate there is enough cash to last until the end of August next year considering there is no profit in the product. Likely the loss will be much greater as they will be losing more money selling more loss making product. Predict another fund raise by the end of the year. Targeting selling at cost is a disaster waiting to happen. Mistral news delayed until end of year. Stinks.

[hope1815] 27/6/2024 07:18

RNS seems in line what has been reported. The Conclusion from the Chairman-

The coming years for Invinity are all about scale. We need our products to be at a scale so they can solve grid operators' and project developers' most pressing challenges. We need our book of business to scale to where we can set the direction of a rapidly evolving global market and regulatory landscape. And we need our organisation to scale so we can deliver the revenue and profits that will see us continually enhance shareholder value.

The foundations for scale - both the opportunity we seek to serve and the capabilities we'll deliver to do so - are clear. The need for durable, safe, long duration storage as a critical component of a high renewables net zero grid is no longer in question and plans to deliver on that need are being developed by the world's most influential agencies, governments and regulators. With Mistral, Invinity will have the tool to deliver our vanadium flow batteries' capabilities to the global market. This foundation is an incredible starting point, and I'm looking forward to delivering its potential alongside the Invinity team.

Then the CEO conclusion second paragraph

Mistral in itself is not enough. We must have an appropriate strategy, tailored by region, for commercialization and manufacturing; embrace and enhance our relationships with partners; operate efficiently and effectively; and reduce the potential impact of events outside of our control. And, finally, we must rapidly become profitable, the ultimate measure of our success.

The last line is what most of us want.

Happy Investing

[purchaseatthetop] 27/6/2024 07:18

Um. Errr. But the more they sell the more they lose at gross margin level. How on earth does that work even medium term?

[wheeze] 27/6/2024 07:16

Strip out the cash and the market values this company and all of its IP at a little over thirty million quid. With mistral on target to launch later this year we should be due for a serious re-rating soon. If Labour comes in they will have to stand by their pledge to pour money into the green energy sector which will benefit IES. About time.

[itsriskythat] 27/6/2024 07:16

Important bit here ..

"The Company has a strategic aim to move to delivering projects at positive gross margin and this positive trend continues with the more recent projects being at broadly flat or small positive gross margins at the project level (before allocation of facility costs). Delivering on this margin is a key corporate priority and will make an important contribution to the Company being able to fund its administrative costs from cash from operations in the future.

To this end, the Company continues to develop Mistral. Mistral is expected to be manufactured at significantly lower cost than the Company's existing product, the VS3 and, when deployed, will occupy a comparatively smaller physical footprint that will lead to lower costs for operations and maintenance. These characteristics are expected to enable the Company to sell this new product at a materially lower and more competitive price point than currently."

Mistral development is continuing, it says, but how much longer can it be?

[wheeze] 27/6/2024 07:12

511% increase in total income1 YoY to £22.0m (2022: £3.6m), marginally ahead of guidance provided on 18 December 2023 and largely due to an 800% YoY increase in products shipped (32.5 MWh) during the period. 136.7 MWh of Invinity batteries sold or awarded funding during 2023 for delivery in 2024 or 2025 including 99.6 MWh relating to Invinity's next generation Mistral product, which remains on track for commercial launch later this year. 170% increase in total global pipeline of commercial interest to 6.6 GWh as of 17 June 2024 (24 May 2023: 2.47 GWh) reflecting growing commercial interest in Invinity's products and longer duration energy storage solutions in general.Debt-free with £53.2m of cash at 31 May 2024 (2023: £15.4m)reflecting a post period £57.4m fundraise cornerstoned by a £25m investment from UK Infrastructure Bank completed in May 2024.

[megaman2] 25/6/2024 13:55

To. Be fair I wouldn't have known either but it was posted on here by another. Ies don't even have to be the main alternative just a slice of the pie the market is huge.

[colsmith] 25/6/2024 13:26

MEG - thanks for the link. I guess there are several BES contenders flywheel, sold state batteries, not sure if BES contender, Newton Battery etc. What would be nice is to see the relative strength of each such as footprint on ground, fiscals, electrical efficiency etc. If a product is commercially worthwhile I don't see why Government cash (taxpayer) is needed. Maybe currently all this lot are after Government money, that in itself raises a query on viability IMO.

[megaman2] 25/6/2024 12:16

Wrong again hamida if they execute on plan they break even next year ( a c $2mill loss from memory £30mill still in hand).according to the broker and make a $5 mill net profit in 2026..

All you have to do is do some very basic research and read the analysts reports on the company website which you clearly haven't .

It's executing the plan which is questionable . At least if you are going to deramp have a proper go and come up with something decent ...it's not actually that hard ..it's clear you know little here and have an unresearched agenda.if instead you stated you find it hard to believe zilch will deliver given the step up required from historic performance and scale at which they need to now produce that becomes more difficult to rebuff...

[hamidahamida] 25/6/2024 12:11

In just last 6 months aloneNet cash outflow was Over 12 million Wow company Burns Money like no tomorrow and still valued over 80 million.Imho company is years away from making any money that's IF they execute on the plan around 10p is probably a good risk reward price

[megaman2] 25/6/2024 11:54

Colsmith you really are not keeping up to date ..highview power just announced a 300 mwh £300 mill liquid to air battery funded by the national grid and the same bank investing in ies a much smaller sum your post seems unresearched...

hxxps://thenextweb.com/news/highview-power-funding-uk-liquid-air-battery

The same company is talking about a follow on 2.5 gwh which as things stand seems more attainable than ies pipelines

In the UK vfrb are playing third fiddle..