VivoPower International PLC Reports Preliminary Estimated Unaudited Financial Results for the Fiscal Year Ended June 30, 2024
VivoPower International PLC (Nasdaq: VVPR) reported preliminary unaudited results for FY2024. Annual consolidated revenue declined 22% to $11.8 million, reflecting a strategic shift towards Electric Vehicle and Sustainable Energy Solutions. Gross profit increased 170% to $1.6 million. Underlying net loss was ($25.1) million, with EPS of ($8.01). Cash balance increased to $0.8 million.
Key highlights include Tembo E-LV executing a Business Combination Agreement with CCTS at a $904 million enterprise value, and the sale of Kenshaw Electrical for A$5.0 million. Tembo achieved milestones in EUV powertrain delivery, joint ventures, and supply chain establishment.
VivoPower International PLC (Nasdaq: VVPR) ha riportato risultati preliminari non verificati per l'anno fiscale 2024. I ricavi consolidati annuali sono diminuiti del 22% a 11,8 milioni di dollari, riflettendo un cambiamento strategico verso veicoli elettrici e soluzioni energetiche sostenibili. Il profitto lordo è aumentato del 170% a 1,6 milioni di dollari. La perdita netta sottostante è stata di 25,1 milioni di dollari, con un EPS di 8,01 dollari. Il saldo di cassa è aumentato a 0,8 milioni di dollari.
Tra i punti salienti, Tembo E-LV ha eseguito un Accordo di Combinazione Aziendale con CCTS a un valore aziendale di 904 milioni di dollari, e la vendita di Kenshaw Electrical per 5,0 milioni di dollari australiani. Tembo ha raggiunto traguardi nella consegna del gruppo propulsore EUV, nelle joint venture e nell'istituzione della catena di approvvigionamento.
VivoPower International PLC (Nasdaq: VVPR) reportó resultados preliminares no auditados para el año fiscal 2024. Los ingresos consolidados anuales disminuyeron un 22% a 11.8 millones de dólares, reflejando un cambio estratégico hacia vehículos eléctricos y soluciones energéticas sostenibles. El beneficio bruto aumentó un 170% a 1.6 millones de dólares. La pérdida neta subyacente fue de 25.1 millones de dólares, con una EPS de 8.01 dólares. El saldo de efectivo aumentó a 0.8 millones de dólares.
Los puntos destacados incluyen que Tembo E-LV ejecutó un Acuerdo de Combinación Empresarial con CCTS a un valor empresarial de 904 millones de dólares, y la venta de Kenshaw Electrical por 5.0 millones de dólares australianos. Tembo logró hitos en la entrega del tren motriz EUV, en joint ventures y en el establecimiento de la cadena de suministro.
VivoPower International PLC (Nasdaq: VVPR)는 FY2024에 대한 잠정적인 비감사 결과를 보고했습니다. 연간 통합 수익은 22% 감소한 1,180만 달러이며, 이는 전기 자동차 및 지속 가능한 에너지 솔루션으로의 전략적 전환을 반영합니다. 총 이익은 170% 증가하여 160만 달러에 달했습니다. 기초 순손실은 2,510만 달러였으며, EPS는 8.01달러입니다. 현금 잔고는 80만 달러로 증가했습니다.
주요 하이라이트로는 Tembo E-LV가 CCTS와 함께 9억 4천만 달러의 기업 가치로 비즈니스 통합 계약을 체결했으며, Kenshaw Electrical을 5백만 호주 달러에 판매한 것입니다. Tembo는 EUV 파워트레인 납기, 공동 기업 및 공급망 구축에서 이정표를 달성했습니다.
VivoPower International PLC (Nasdaq: VVPR) a rapporté des résultats préliminaires non audités pour l'exercice 2024. Le chiffre d'affaires consolidé annuel a diminué de 22 % pour atteindre 11,8 millions de dollars, reflétant un changement stratégique vers les véhicules électriques et les solutions énergétiques durables. Le bénéfice brut a augmenté de 170 % pour atteindre 1,6 million de dollars. La perte nette sous-jacente s'élevait à 25,1 millions de dollars, avec un BPA de 8,01 dollars. Le solde de trésorerie a augmenté à 0,8 million de dollars.
Les faits saillants incluent que Tembo E-LV a exécuté un Contrat de Combiné d'Affaires avec CCTS à une valeur d'entreprise de 904 millions de dollars, et la vente de Kenshaw Electrical pour 5,0 millions de dollars australiens. Tembo a atteint des jalons dans la livraison du groupe motopropulseur EUV, dans les coentreprises et dans l'établissement de la chaîne d'approvisionnement.
VivoPower International PLC (Nasdaq: VVPR) berichtete über vorläufige, ungeprüfte Ergebnisse für das Geschäftsjahr 2024. Die jährlichen konsolidierten Einnahmen sanken um 22% auf 11,8 Millionen Dollar, was einen strategischen Wechsel zu Elektrofahrzeugen und nachhaltigen Energiesystemen widerspiegelt. Der Bruttogewinn stieg um 170% auf 1,6 Millionen Dollar. Der zugrunde liegende Nettoverlust betrug 25,1 Millionen Dollar, mit einem EPS von 8,01 Dollar. Der Bargeldbestand erhöhte sich auf 0,8 Millionen Dollar.
Zu den wichtigsten Höhepunkten gehört, dass Tembo E-LV einen Geschäftskombinationsvertrag mit CCTS zu einem Unternehmenswert von 904 Millionen Dollar abgeschlossen hat und den Verkauf von Kenshaw Electrical für 5,0 Millionen australische Dollar realisierte. Tembo erzielte Meilensteine bei der Lieferung des EUV-Antriebsstrangs, bei Joint Ventures und beim Aufbau der Lieferkette.
- Gross profit increased 170% year-on-year to $1.6 million
- Cash balance improved to $0.8 million from $0.6 million in FY2023
- Tembo executed a Business Combination Agreement at $904 million enterprise value
- Sale of non-core business Kenshaw Electrical for A$5.0 million
- Tembo achieved milestones in EUV powertrain delivery and joint ventures
- Annual consolidated revenue declined 22% to $11.8 million
- Underlying net loss increased to ($25.1) million from ($20.1) million in FY2023
- EPS worsened to ($8.01) from ($0.82) in FY2023
- Adjusted EBITDA loss from continuing operations slightly increased to ($5.9) million
The 22% y-o-y revenue decline to
The Tembo Business Combination with CCTS, valuing the EV subsidiary at
However, the cash balance of
Tembo's progress in the EV sector is impressive. The delivery of next-generation EUV powertrain conversion kits and the launch of the Tembo Tusker OEM electric pickup demonstrate product readiness. Strategic partnerships, like the joint venture with Francisco Motor for electric jeepneys in the Philippines, target key emerging markets.
The robust supply chain across Asia is important for scaling operations efficiently. The joint venture with Geminum for digital twin technology shows foresight in leveraging advanced tech for product development and operational efficiency.
However, the EV market is highly competitive with established players. Tembo's success will depend on its ability to differentiate its offerings, particularly in niche markets like utility vehicles and emerging economies. The potential Nasdaq listing through CCTS could provide needed capital and visibility to compete effectively in this capital-intensive industry.
VivoPower's strategic shift towards EVs and Sustainable Energy Solutions aligns with global trends, but execution is key. The Tembo Business Combination at a
The company's focus on emerging markets, particularly in Asia, is astute. These regions often have less entrenched competition and growing demand for sustainable transport solutions. The electric jeepney project in the Philippines is a prime example of targeting market-specific opportunities.
However, the 22% revenue decline and ongoing losses indicate challenges in managing this transition. The sale of non-core assets like Kenshaw Electrical shows commitment to the new strategy, but also highlights the need for additional funding sources. The success of Tembo's potential Nasdaq listing will be important for providing the capital needed to compete in the rapidly evolving EV market and achieve profitability.
Annual consolidated revenue of
Underlying consolidated adjusted EBITDA1 from continuing operations declined slightly to a (
Cash balance at June 30, 2024 was
Tembo E-LV, a subsidiary of VivoPower executed a definitive Business Combination Agreement with CCTS for a combined enterprise value of US
Kenshaw Electrical, one of the Company’s Critical Power business units, was sold for approximately A
LONDON, Aug. 30, 2024 (GLOBE NEWSWIRE) -- VivoPower International PLC (Nasdaq: VVPR) (“VivoPower” or the “Company”) today announced its preliminary estimated unaudited results for the fiscal year ended June 30, 2024.
Financial Highlights for the Fiscal Year Ended June 30, 2024
- Annual consolidated revenue declined
22% y-o-y to$11.8 million , reflecting a strategic shift towards prioritizing profitable revenue streams, particularly within the Critical Power Services business unit, and adverse foreign exchange movements related to the Australian dollar relative to the USD, and an intensified effort to scale up the Electric Vehicle business unit. - Annual consolidated gross profit from continuing operations increased
170% y-o-y to$1.6 million from ($2.3) million gross loss in fiscal year 2023 ("FY23"). This positive turnaround reflects a focus on higher margin revenue streams and operational efficiencies, as well as cessation of any weather related losses from solar projects in Australia that impacted the company in the last financial year; - Annual underlying net after-tax loss was (
$25.1) million , with an earnings per share (“EPS”) of ($8.01) , reflecting a decline from net loss of ($20.1) million ) from continuing operations) and ($0.82) EPS in FY23. Annual adjusted net after-tax loss2 remained unchanged at ($14.2) million compared to FY23 despite the decline in revenues and increasing headcount for Tembo. This was aided by the focus on higher margin revenues as well as technology and outsourcing driven efficiency savings and reduced non-recurring costs. However, the adjusted underlying EPS2 worsened to ($4.53) per share, down from ($0.58) per share in FY23. It is important to note that the FY24 per share figures account for the 10-to-1 reverse stock split implemented by the company during the year. - Annual underlying consolidated adjusted EBITDA loss from continuing operations was (
$5.9) million , representing a slight decrease y-o-y to ($5.7) million adjusted EBITDA loss from continuing operations for FY23. - Consolidatedcash balance increased to
$0.8 million at June 30, 2024 (excluding restricted cash balances, bank guarantee deposits and other cash equivalents) in comparison to$0.6 million at June 30, 2023.
Business Highlights for the Fiscal Year Ended June 30, 2024
- On 2 April, 2024, VivoPower signed a heads of agreement for a business combination between Tembo and Nasdaq-listed Cactus Acquisition Corp. 1 Limited (“CCTS”) at a pre-money equity value of US
$838 million (such transaction, the “Tembo Business Combination”). Should the Tembo Business Combination be consummated, it would result in Tembo becoming a separate listed company on Nasdaq. However, it is expected that VivoPower will continue to be the major shareholder in the post-Tembo Business Combination company, and, on that basis, Tembo would continue to be a controlled subsidiary of VivoPower and consolidated in its financial statements. - On 3 July, 2024, Tembo agreed to a one-month extension of its exclusive heads of agreement with CCTS until July 31, 2024. This was further extended on 30 July, 2024, extending the exclusivity period to August 31, 2024.
- On 29 June 2024, VivoPower’s major shareholder agreed to amend and extend its US
$34m shareholder loan financing agreement. The agreement consolidated all shareholder loans into a single tranche and reclassified them as non-current, further de-risking the Company’s balance sheet. - During the fiscal year ended 30 June 2024, Tembo, achieved several key milestones:
- Commenced delivery of its next-generation electric utility vehicle (“EUV”) powertrain conversion kits, following successful testing programs.
- Entered into a definitive joint venture with Francisco Motor Corporation in the Philippines, to deliver electrification kits for a new generation of electric jeepneys.
- Executed a joint venture with Geminum to design, test, and implement digital twins of Tembo’s EUVs and ancillary sustainable energy solutions.
- Established a robust supply chain across Asia, partnering with key players in the Philippines, Thailand, China, and India.
- Introduced [and launched] a fully electric OEM pickup utility vehicle, the “Tembo Tusker” to enable customers and partners to choose between a conversion or a new electric pick up truck.
- Honoured with the electrical vehicle innovation of the year award at the Tech Innovation Awards 2023 hosted in Dubai.
Subsequent Events
- On August 29, 2024, Tembo executed a definitive Business Combination Agreement at a combined enterprise value of US
$904m with CCTS. An independent third-party fairness opinion was satisfactorily completed, and the BCA was signed after a four-month period of due diligence. - On 7 July, 2024, VivoPower completed the sale of one of its non-core business units, Kenshaw Electrical, to ARA Group Limited for approximately A
$5.0 million . This divestment aligns with VivoPower’s strategy to reinvest in its high-growth businesses, particularly its Electric Vehicle business unit.
Executive Chairman, Kevin Chin, reflected on the fiscal year ended June 30, 2024, noting the year was marked by both challenges and significant progress. “Fiscal year 2024 was a year of executing on our strategy to focus on the business units with the largest total addressable markets and tailwinds, these being our electrical vehicle and sustainable energy solutions business units. At the same time, we battled through a difficult macroeconomic environment which made fund raising very challenging, as well as inflationary, labour market and forex pressures in Australia, that adversely impacted our Critical Power business units. After the fiscal year end, we consummated the sale our Kenshaw Electrical business in accordance with this strategic refocus.
Notwithstanding these challenges, we were able to make significant progress with our Tembo electric vehicle business in particular. This includes:
- the execution of a definitive Business Combination Agreement at a combined enterprise value of US
$904m with Cactus Acquisition Corp. 1 Limited. This transaction, if completed, will result in Tembo becoming a separate NASDAQ listed entity, with its own funding avenues. VivoPower is expected to remain the majority shareholder of the post-Tembo Business Combination entity. - delivery of Tembo’s next-generation electric utility vehicle (“EUV”) powertrain conversion kits, following successful testing programs.
- entering into a definitive joint venture with Francisco Motor Corporation in the Philippines, to deliver electrification kits for a new generation of electric jeepneys.
- executing a joint venture with Geminum to design, test, and implement digital twins of Tembo’s EUVs and ancillary sustainable energy solutions.
- establishing a robust supply chain across Asia, partnering with key players in the Philippines, Thailand, China, and India.
- introducing and launching a fully electric OEM pickup utility vehicle, the “Tembo Tusker” to enable customers and partners to choose between a conversion or a new electric pick up truck.
As we move into fiscal year 2025, we are optimistic about the opportunities ahead, particularly with the continued growth opportunities for Tembo and the anticipated completion of the Tembo Business Combination and separate listing of Tembo. The VivoPower team remains steadfast in our mission to deliver sustainable energy solutions and drive long-term value creation for our stakeholders.”
About Non-IFRS Financial Measures
Our preliminary estimated unaudited results include certain non-IFRS financial measures, including adjusted EBITDA, adjusted net after-tax loss and adjusted EPS. Management believes that the use of these non-IFRS financial measures provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of our results of operations, and also facilitates comparisons with peer companies, many of which use similar non-IFRS or non-GAAP (“Generally Accepted Accounting Principles”) financial measures to supplement their IFRS or GAAP results. Non-IFRS results are presented for supplemental informational purposes only to aid in understanding our results of operations. The non-IFRS results should not be considered a substitute for financial information presented in accordance with IFRS and may be different from non-IFRS or non-GAAP measures used by other companies.
The tables included in this press release titled “Reconciliation of Adjusted (Underlying) EBITDA for Continuing Operations to IFRS Financial Measures” and “Reconciliation of Adjusted (Underlying) Net After-Tax Loss for Continuing Operations and Adjusted (Underlying) EPS to IFRS Financial Measures” provide reconciliations of non-IFRS financial measures to the most recent directly comparable financial measures calculated and presented in accordance with IFRS.
Adjusted (Underlying) EBITDA equates to earnings before interest, taxes, depreciation and amortization, non-cash-based share compensation, impairment of assets, impairment of goodwill, and restructuring and other non-recurring costs. See the reconciliation of non-IFRS measures below.
Adjusted (Underlying) net after-tax loss equates to net after-tax loss adjusted for restructuring and other non-recurring costs and cost of sales – nonrecurring. See the reconciliation of non-IFRS measures below.
Adjusted (Underlying) EPS equates to earnings per share adjusted for restructuring and other non-recurring costs and cost of sales - nonrecurring. See the reconciliation of non-IFRS measures below.
Reconciliation of Adjusted (Underlying) EBITDA for Continuing Operations to IFRS Financial Measures
| Year ended June 30 | ||||||||
| (US dollars in thousands) | 2024 | 2023 | ||||||
| Net after-tax loss | (25,114 | ) | (24,355 | ) | ||||
| Loss from discontinued operations | - | 4,207 | ||||||
| Net after-tax Loss from continuing operations | (25,114 | ) | (20,148 | ) | ||||
| Income tax | 1,164 | 540 | ||||||
| Net finance expense | 5,797 | 6,210 | ||||||
| Share based compensation expense | - | 148 | ||||||
| Restructuring & other non-recurring costs1 | 10,913 | 2,084 | ||||||
| Depreciation and amortisation | 1,348 | 1,581 | ||||||
| Non-recurring cost of sales 2 | - | 3,850 | ||||||
| Adjusted (Underlying) EBITDA for continuing operations | (5,891 | ) | (5,735 | ) | ||||
Note:
| (1 | ) | 2024 amounts include | |
| (2 | ) | 2023 amounts include |
Reconciliation of Adjusted (Underlying) Net After-Tax Loss for Continuing Operations and Adjusted (Underlying) EPS to IFRS Financial Measures
| Year ended June 30 | ||||||||
| (US dollars in thousands except per share amounts) | 2024 | 2023 | ||||||
| Net after-tax loss from continuing operations | (25,114 | ) | (20,148 | ) | ||||
| Restructuring & other non-recurring costs1 | 10,913 | 2,084 | ||||||
| Non-recurring cost of sales 2 | - | 3,850 | ||||||
| Adjusted (Underlying) net after-tax loss from continuing operations | (14,200 | ) | (14,215 | ) | ||||
| Loss from continuing operations – per share | (8.01 | ) | (0.82 | ) | ||||
| Restructuring & other non-recurring – per share | 3.48 | 0.08 | ||||||
| Non-recurring cost of sales 1 – per share | 0.00 | 0.16 | ||||||
| Adjusted (Underlying) continuing EPS | (4.53 | ) | (0.58 | ) | ||||
Note:
| (1 | ) | 2024 amounts include | |
| (2 | ) | 2023 amounts include | |
About VivoPower
VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for customised and ruggedised fleet applications, battery and microgrids, solar and critical power technology and services. The Company’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel in Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
Statement Regarding Preliminary Unaudited Financial Results
The unaudited financial information published herein is preliminary and subject to potential adjustments. Potential adjustments to operational and consolidated financial information may be identified from further work performed during the Company’s year-end review, which could result in differences from the unaudited financial information published herein. For the avoidance of doubt, the preliminary unaudited financial information published herein should not be considered a substitute for the further financial information contained within the Annual Report on Form 20-F for the fiscal year ended June 30, 2024 to be filed by the Company with the Securities and Exchange Commission.
Forward-Looking Statements
This communication includes certain statements that may constitute “forward-looking statements” for purposes of the U.S. federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterisations of future events or circumstances, including any underlying assumptions, information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company’s management, and the Company’s assumptions regarding such performance and plans. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the achievement of performance hurdles, or the benefits of the events or transactions described in this communication and the expected returns therefrom, including the Tembo Business Combination. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty, and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.
Contact
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shareholders@vivopower.com
1 Adjusted EBITDA is not calculated in accordance with International Financial Reporting Standards (“IFRS”). See “About Non-IFRS Financial Measures” below for a discussion of the non-IFRS measures used in this release and a reconciliation to their most comparable IFRS measure.
2 Adjusted net after tax loss and adjusted EPS are not calculated in accordance with IFRS. See “About Non-IFRS Financial Measures” below for a discussion of the non-IFRS measures used in this release and a reconciliation to their most comparable IFRS measure.
FAQ
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