EQS Group-Ad-hoc: Leclanché SA / Key word(s): Interim Report/Half Year
Results
Leclanché SA: Leclanché announces interim results for 2017 and reports an
84% increase in revenue during the first half of the year
13-Oct-2017 / 19:17 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
*Leclanché announces interim results for 2017 and reports an 84% increase in
revenue during the first half of the year*
- _Full year 2017 revenues forecast to be in line with or slightly above
2016_
_- EBITDA breakeven anticipated in late 2018/ H12019_
_- Launching Rights Offering to raise CHF 40 million to finance growth plan_
_- The business outlook remains solid_
*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."
*Business highlights *
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."_
# # #
*About Leclanché*
Leclanché is one of the world's leading fully vertically integrated energy
storage solution providers. It delivers a wide range of energy storage
solutions for homes, small offices, large industries, electricity grids, as
well as hybridization for mass transport systems such as bus fleets and
ferries. Established in 1909, Leclanché has been a trusted provider of
battery energy storage solutions for over 100 years. Founded in the
tradition of Georges Leclanché, the inventor of the dry cell battery,
Leclanché today has a rich portfolio of Battery Energy Storage Systems
(BESS) that include bespoke battery systems from industry leading
lithium-ion solutions.
Leclanché is listed on the Swiss stock exchange, and is the only listed
pure-play energy storage company in the world.
SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9
*Disclaimer*
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.
* * * * *
*Europe/global:*
Désirée Maghoo
T: +44 (0) 7775 522740
E-mail: dmaghoo@questorconsulting.com
Simon Barker
T: +44 (0)7866 314331
E-mail: sbarker@questorconsulting.com
*US and Canada: *
Rick Anderson
T: +1 (718) 986 1596
Henry Feintuch
T: +1 (212) 808 4901
E-mail: leclanche@feintuchpr.com
*Investor Contacts*
Anil Srivastava / Hubert Angleys
Tel.: +41 (0) 24 424 65 00
E-Mail: invest.leclanche@leclanche.com
# # #
End of ad hoc announcement
Language: English
Company: Leclanché SA
Av. des Sports 42
1400 Yverdon-les-Bains
Switzerland
Phone: +41 (24) 424 65-00
Fax: +41 (24) 424 65-20
E-mail: investors@leclanche.com
Internet: www.leclanche.com
ISIN: CH0110303119, CH0016271550
Valor: A1CUUB, 812950
Listed: SIX Swiss Exchange
End of Announcement EQS Group News Service
618977 13-Oct-2017 CET/CEST
(END) Dow Jones Newswires
October 13, 2017 13:17 ET (17:17 GMT)
