Trading Update

RNS Number : 8615P

Invinity Energy Systems PLC

15 June 2020

 

This announcement contains inside information

15 June 2020

Invinity Energy Systems plc

("Invinity" or the "Group")

Trading Update

£1.1m of sales closed, manufacturing operations resume and Group integration continues despite impact of pandemic.

Invinity Energy Systems plc (AIM:IES), manufacturer of vanadium flow batteries for the large-scale energy storage requirements of businesses, industry and electricity networks, is pleased to provide an update on the Group's activities following its creation in April 2020 from the merger of Avalon Battery Corporation and redT energy plc.

Positive commercial progress

Despite ongoing economic uncertainty, Invinity is pleased to announce that, since the beginning of 2020, it has received signed order confirmations for a total of 1.7 MWh of its vanadium flow batteries ("VFBs"), comprising 40 VFB modules.

The above orders have been received from a variety of customers located across Europe, Asia and the United States, further validating Invinity's progress in those markets. End-users for these VFBs include:

· A major US-based municipal utility;

· A leading Asia-based developer of energy storage projects; and

· A major global retail chain.

Invinity anticipates working with these customers to further expand their use of VFBs and will announce such developments in due course as appropriate. These orders open new geographies and applications for the Group's products, demonstrating growing market confidence in Invinity's durable, reliable and economical VFB storage solutions for a rapidly changing energy landscape.

The anticipated revenue contribution of these sales of approximately £1.1m includes the VFBs themselves, ancillary components and related services to be provided by Invinity. Revenues will be recognised by the Group as these projects are installed and commissioned.

These module sales are in addition to the 5 MWh, 162-module order for Energy Superhub Oxford (ESO), a project previously announced by Invinity and Pivot Power, a subsidiary of EDF Renewables.

In addition to the above, Invinity has delivered 240 kWh of battery modules since the beginning of 2020 to a demonstration project sponsored by a municipal US utility; these modules have been delivered under a programme intended to validate VFBs' potential to improve the future operating performance of the utility within its geographic mandate.

Manufacturing continues despite COVID-19 situation

Measures introduced to limit the impact of COVID-19, including work-from-home regulations, have affected Invinity's operations in the UK, Canada, the US and its outsourced manufacturing in China. The Group is pleased to report that manufacturing operations in China have now returned to normal capacity and the manufacturing facilities in Vancouver and the UK are restarting operations. Invinity's staff have continued to work remotely since the outbreak of the pandemic and are now returning to the facilities in the UK and Canada as required whilst adhering to local regulations and following best practices as advised by regional and national health authorities. Supply of components and assembly for the projects mentioned above is underway; the Group expects to resume deliveries in the second half of 2020.

Invinity continues to progress towards fulfilment of the 162-module order for use at Energy Superhub Oxford. The Group is working closely with its project partners to adapt work plans and schedules to COVID-19 restrictions and remains confident that module delivery will commence before the end of the year as previously stated.

Financial

As at the end of May 2020, following the completion of the merger and fundraising, the Group's cash reserves stood at £5.8m. This was before any drawdowns on the RiverFort £3m loan facility and in line with management expectations.

The Group expects to announce its 2019 Full Year Results and publish its 2019 Annual Report and Financial Statements by no later than 31 July 2020 (further to 'Inside Aim: Coronavirus - Temporary measures for publication of annual audited accounts'). Announcements regarding the exact timing of the results and the company's AGM, which is likely to be held virtually, will be made in due course.

Larry Zulch, Chief Executive Officer at Invinity said:

"We're pleased at the progress Invinity is making despite ongoing challenges presented by the COVID-19 crisis. We're working effectively as one team and have resumed production of our VFBs. A silver lining to the current crisis will be if the global response to the potentially larger crisis of climate change is sped up. We believe that renewable energy requires a proven alternative to lithium storage that is safe, economical and long-lasting. Invinity is proud to provide that alternative with its VFBs."

Enquiries :

Invinity Energy Systems plc	[phone]
Larry Zulch, Chief Executive Officer
Fraser Welham, Chief Financial Officer Joe Worthington, Head of External Communications
Investec Bank plc (Nominated Adviser and Joint Broker)	[phone]
Jeremy Ellis / Chris Sim / Will Fenby
VSA Capital (Financial Adviser and Joint Broker) Andrew Monk / Andrew Raca	[phone]
Hudson Sandler (Financial PR) Nick Lyon / Toby Andrews	[phone]

Notes to Editors

Invinity Energy Systems plc (AIM:IES) manufactures vanadium flow batteries for the large-scale energy storage requirements of businesses, industry and electricity networks.

Developed specifically for high-utilisation applications that make low-carbon renewable generation reliable, Invinity's highly scalable, factory-built flow battery products can run continually with no degradation, charging and discharging for over 25 years. Energy storage systems based on Invinity's batteries are safe, reliable, and economical, and range in size from less than 250 kilowatt-hours to tens of megawatt-hours.

Invinity was created in April 2020 through the merger of two flow battery industry leaders: redT energy plc and Avalon Battery Corporation. With over 10MWh of systems deployed to date across 40 sites in 14 countries, Invinity is active in all major global energy storage markets and has operations in the UK, Canada, USA, China and South Africa. Invinity Energy Systems plc is listed on the London Stock Exchange.

To find out more, visit  invinity.com  or call Investor Relations on [phone].

 

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