VivoPower International PLC Reports Unaudited Preliminary Results for the Six Months Ended December 31, 2023
January 17 2024 - 8:45AM
VivoPower International PLC (Nasdaq: VVPR, the “Company” or
“VivoPower”) today announced its half year unaudited preliminary
results for the six months ended December 31, 2023.
Highlights for the half year ended
December 31, 2023
- Revenue from continuing operations
declined to $5.9 million, from $8.7 million in the half year ended
December 31, 2022, reflecting a disciplined refocus on profitable
revenues, especially from the Critical Power Services business
unit, adverse foreign exchange movements (relating to the
Australian dollar) and a heightened focus on scaling up the
Electric Vehicle business unit.
- Net after-tax loss from continuing
operations decreased to $7.8 million, as compared to a loss of
$10.4 million in the half year ended December 31, 2022 despite the
decline in revenues and increasing headcount in Tembo UK and
Australia. This was aided by the focus on higher margin revenues as
well as technology and outsourcing driven efficiency savings and
reduced non-recurring costs.
- Tembo signed a definitive joint
venture agreement with Francisco Motor Corporation in September
2023 to develop and supply electric utility vehicle (“EUV”)
electrification kits for a new generation of electric jeepneys
(e-jeepneys) in the Philippines.
- VivoPower signed a joint venture
with Geminum Pty Ltd in October 2023 to design, test and implement
digital twins of Tembo’s EUVs and ancillary Vivopower sustainable
energy solutions (SES).
- VivoPower’s Solar Development
business unit has secured board and shareholder approval to spin
off the majority of its portfolio in exchange for a distribution in
kind in the form of stock in the spin off entity.
- Tembo was honoured with the
electrical vehicle innovation of the year award at the Tech
Innovation Awards 2023 hosted in Dubai.
“Our unaudited preliminary half year results
reflect a heightened focus on profitable revenues (especially from
the Critical Power Services business unit led by Aevitas) as well
as technology and outsourcing driven efficiency cost savings. As a
result, while our revenues declined, our net loss from continuing
operations contracted. Notwithstanding a very challenging macro
environment for electric vehicle companies, we have made
significant strategic and commercial progress with Tembo, our
Electric Vehicle business unit. On the commercial front, in
September 2023, Tembo signed a definitive joint venture agreement
with Francisco Motor Corporation to develop and supply EUV
electrification kits for a new generation of electric jeepneys
(e-jeepneys) in the Philippines, which is expected to open up an
estimated $10 billion total addressable market opportunity. On the
operational front, we completed our first shipment of the next
generation EUV conversion kits while our next generation pilot
vehicle has now travelled more than 1000km without any issues as
the team focuses on preparing the ramp-up in assembly required to
meet the demand from our existing partners and customers. Further,
following December 31, 2023, we achieved certain milestones
required to proceed to a follow on strategic direct investment of
$5 million into Tembo at a pre-money valuation of $120 million,
from a private investment office based by a member of the ruling Al
Maktoum family of Dubai.
With regards to our Solar Development business
unit, we have secured Board approval for the spin off of the
majority of our Solar Development assets based in the United States
in exchange for a distribution in kind in the form of stock in the
spin off entity. We expect the spin off to be completed before our
fiscal year end.
Finally, for our Sustainable Energy Solutions
business unit, we signed a joint venture with Geminum Pty Ltd in
October 2023 to design, test and implement digital twins of Tembo’s
EUVs and ancillary Vivopower sustainable energy solutions
(SES)”.
The expected first half 2024 results set out above are
preliminary and subject to the Company’s half year-end close
procedures. The Company’s consolidated financial statements as of,
and for the six months ended, December 31, 2023 are not
yet available. Accordingly, the information presented herein
reflects the Company’s preliminary estimates subject to the
completion of the Company’s financial closing procedures and any
adjustments that may result from the completion of the review of
the Company’s consolidated financial statements. As a result, these
preliminary estimates may differ from the actual results that will
be reflected in the Company’s consolidated financial statements for
the first half when they are completed and publicly disclosed.
These preliminary estimates may change and those changes may be
material.
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.
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 characterizations of future events
or circumstances, including any underlying assumptions. 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 benefits of the events or transactions described in this
communication and the expected returns therefrom. 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.
For further guidance on risks, uncertainties and
other factors that can have an impact on our outcomes, please refer
to Item 3. Key Information – D. Risk Factors, as reported in the
Company’s Annual Report on Form 20-F, for the year ended June 30,
2023. Specifically, the consolidated financial statements included
therein were prepared on a going concern basis and do not include
any adjustments that result from uncertainty about our ability to
continue as a going concern. However, if losses continue, and
if we are unable to raise additional financing on sufficiently
attractive terms or generate cash through sales of solar projects
or other material assets or other means, then we may not have
sufficient liquidity to sustain our operations and may not be able
to continue as a going concern. Similarly, the report of our
independent registered public accounting firm on our consolidated
financial statements as of and for the year ended June 30, 2023
includes an explanatory paragraph indicating that a material
uncertainty exists which may cast material doubt on the group’s
ability to continue as a going concern if it is unable to secure
sufficient funding. Our consolidated financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.
Contact
Shareholder Enquiries
shareholders@vivopower.com
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