YVERDON LES BAINS, Switzerland, 13th October 2017: Leclanché SA (SIX: LECN), one of the world’s leading energy storage solution companies, today announced its interim results for the half year ending 30 June 2017.
Leclanché’s revenue grew by 84% year-on-year to CHF 10.6 million (from CHF 5.7 million) in the six months to 30 June of 2017.
The Company’s loss for the period reduced by 31% to CHF 11.9 million from CHF 17.3 million. Personnel costs declined by 10% year-on-year reflecting the restructuring and cost reduction measures taken in late 2016 and early 2017. Other operating expenses increased by 21% due to due diligence costs associated with the implementation of a debt facility.
Leclanché reduced its convertible debt to CHF 17 million from CHF 23 million thanks to conversions completed in September and October 2017. A further CHF 5 million reduction is expected upon completion of a Rights Offering, intended to raise CHF 40 million. The Company’s major shareholders have agreed to subscribe amounts proportional with their current shareholdings amounting to some 65%. The fund raising is due to be finalised by the end of December 2017.
The funding delay in the first half of the year will have an adverse impact on revenue recognition in the second half. However, the Company still expects its full year 2017 revenues to be equivalent or slightly above its 2016 results, and it is on track to achieve EBITDA breakeven in late 2018/ H12019.
Anil Srivastava, Leclanché CEO, said: “In spite of the funding delay at the start of 2017, we are delighted to report the Company’s strong performance in the first half of the year and to provide a positive outlook. Energy storage is one of the most dynamic, high growth industries in the world, driven by the shift from fossil fuels to clean energy sources, and we are proud to be at the forefront of innovation in our market.“
“As stated at our AGM in July, our confirmed orderbook grew from 95 MWh to 115 MWh, and in the coming weeks we expect to announce some significant customer project wins. We are delivering on some of the world’s largest stationary storage projects, in particular in North America; and in the last six months we have agreed very exciting deals in the electric vehicle space, including a Joint Development Agreement and a Framework Purchase Contract to supply Skoda Electric’s buses with battery solutions, agreements to develop storage solutions for fast charging stations solutions across Canada and in the Netherlands, and the delivery of our technology into the world’s first fully electric ferry, in Denmark.“
The Company has more than 70 MW / 55 MWh of projects under construction and has a pipeline of more than 700 MWh of awarded and expected projects, with a 110 MWh backlog through 2018.
Leclanché’s transformational eTransport contracts of H12017 should lead to an annual business unit volume of more than 200 MWh by 2019, contributing over USD 45 million per annum.
Funding and growth strategy
Leclanché’s growth plan is fully supported by its strategic investors. In July, Golden Partner invested CHF 27.5 million and Bruellan invested CHF 3.0 million, and in April, Baring Asset Management invested CHF 2.7 million and Bruellan CHF 1.0 million.
In addition to its planned rights issue, Leclanché is reviewing a potential second listing in Q22018, in a fast-growing energy storage market.
Leclanché is also negotiating an off-balance sheet project finance facility of more than USD 200 million.
In line with its growth strategy, Leclanché appointed three new directors to its Board at its AGM: Mr. Pierre-Alain Graf, a well-known industry leader in Switzerland and Europe; and Mr. Tianyi Fan and Ms. Cathy Wang from Golden Partner, both experienced finance professionals.
The Company is undergoing further internal reorganisation to realise its plans, including new structures for its Stationary Storage and eTransport businesses, and plans to make an announcement in Q42017. Leclanché is also reviewing the acquisition of an energy management software company, which is expected to add 3.5% points to the gross margin of the stationary storage business.
Jim Atack, Chairman of Leclanché, said: “The board of directors wish to thank Anil Srivastava and his team for the continued success of Leclanché. The Company’s financial results are very encouraging and we are excited about the huge opportunities ahead for Leclanché as it consolidates its leading position in global energy storage, a market which is set for long-term high growth.”
Srivastava added: “We are very grateful for the ongoing support and dedication of all our stakeholders and look forward to continuing to deliver on our growth plan.”
Publication of results
Leclanché SA published today its 2016 interim report which is available in pdf format on the Company Web site:
Headquartered in Switzerland, Leclanché SA is a leading provider of high-quality energy storage solutions designed to accelerate our progress towards a clean energy future. Leclanché’s history and heritage is rooted in over 100 years of battery and energy storage innovation and the Company is a trusted provider of energy storage solutions globally. This coupled with the Company’s culture of German engineering and Swiss precision and quality, continues to make Leclanché the partner of choice for both disruptors, established companies and governments who are pioneering positive changes in how energy is produced, distributed and consumed around the world. The energy transition is being driven primarily by changes in the management of our electricity networks and the electrification of transport, and these two end markets form the backbone of our strategy and business model. Leclanché is at the heart of the convergence of the electrification of transport and the changes in the distribution network. Leclanché is the only listed pure play energy storage company in the world, organised along three business units: stationary storage solutions, e-Transport solutions and specialty batteries systems. Leclanché is listed on the Swiss Stock Exchange (SIX: LECN).
SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9
This press release contains certain forward-looking statements relating to Leclanché’s business, which can be identified by terminology such as “strategic”, “proposes”, “to introduce”, “will”, “planned”, “expected”, “commitment”, “expects”, “set”, “preparing”, “plans”, “estimates”, “aims”, “would”, “potential”, “awaiting”, “estimated”, “proposal”, or similar expressions, or by expressed or implied discussions regarding the ramp up of Leclanché’s production capacity, potential applications for existing products, or regarding potential future revenues from any such products, or potential future sales or earnings of Leclanché or any of its business units. You should not place undue reliance on these statements. Such forward-looking statements reflect the current views of Leclanché regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantee that Leclanché’s products will achieve any particular revenue levels. Nor can there be any guarantee that Leclanché, or any of the business units, will achieve any particular financial results.
Media Switzerland /Europe:
T: +41 (0) 79 785 35 81
Media North America:
Henry Feintuch / Ashley Blas
T: +1-914-548-6924 / +1-509-494-4053
T: +49 (0) 711 947 670
Anil Srivastava / Hubert Angleys
T: +41 (0) 24 424 65 00