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VivoPower(VVPR) - 2021 Q2 - Quarterly Report
VVPRVivoPower(VVPR)2021-02-24 21:22
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Financial Performance - Group revenue for the six months ended December 31, 2020, was 22.7million,adeclineof2822.7 million, a decline of 28% from 31.4 million in the same period of the previous year[14]. - Gross profit decreased by 17% year on year to 4.6million,whilegrossprofitmarginimprovedto204.6 million, while gross profit margin improved to 20% from 18%[7]. - Underlying adjusted EBITDA was 1.2 million, down from 5.5millioninthepriorcorrespondingperiod[7].−RevenuefromtheCriticalPowerServicessegmentwas5.5 million in the prior corresponding period[7]. - Revenue from the Critical Power Services segment was 22.2 million, a decrease of 29% compared to 31.3millionintheprioryear,primarilyduetoCOVID−19impacts[18].−RevenuefromthenewlyacquiredElectricVehiclesbusinessforNovemberandDecember2020was31.3 million in the prior year, primarily due to COVID-19 impacts[18]. - Revenue from the newly acquired Electric Vehicles business for November and December 2020 was 0.4 million[19]. - Total revenue from Australia was 22.2million,down22.2 million, down 9.1 million from 31.4millioninthepreviousyear[20].−Revenuefromcontractswithcustomersdecreasedby27.831.4 million in the previous year[20]. - Revenue from contracts with customers decreased by 27.8% to 22.7 million for the six months ended December 31, 2020, compared to 31.4millionintheprioryear[74].−Operatingprofitfellby108.131.4 million in the prior year[74]. - Operating profit fell by 108.1% to a loss of 0.4 million, down from a profit of 4.6millioninthecorrespondingpriorperiod[74].−ProfitbeforeincometaxforthesixmonthsendedDecember31,2020,wasalossof4.6 million in the corresponding prior period[74]. - Profit before income tax for the six months ended December 31, 2020, was a loss of 16,000 compared to a profit of 2,173,000in2019,indicatingasignificantdecline[78].−Totalcomprehensivelossfortheperiodwas2,173,000 in 2019, indicating a significant decline[78]. - Total comprehensive loss for the period was 382,000, with retained earnings decreasing to (43,705,000)asofDecember31,2020[80].AcquisitionsandPartnerships−Theacquisitionof51(43,705,000) as of December 31, 2020[80]. Acquisitions and Partnerships - The acquisition of 51% of Tembo e-LV B.V. was completed on November 5, 2020, with the remaining 49% acquired post-balance sheet date on February 2, 2021[7]. - VivoPower executed a landmark partnership deal with GB Auto in Australia worth up to 250 million over the next four years[5]. - The company announced a marquee deal with Tottenham Hotspur FC to provide a full suite of sustainable energy solutions for their key infrastructure assets[6]. - The company acquired 51% of Tembo for 4.8million,withplanstoacquiretheremaining494.8 million, with plans to acquire the remaining 49% for 2.2 million plus shares[45]. - VivoPower completed the acquisition of the remaining 49% of Tembo for 2.2million,bringingtotalownershipto1002.2 million, bringing total ownership to 100%[70]. - The company secured a seven-year distribution agreement with GB Auto, expected to generate a minimum of 250 million over the initial four years[68]. Cost Management and Expenses - Cost of sales for the first half of the current fiscal year was 18.0million,downfrom18.0 million, down from 25.8 million in the prior fiscal year, reflecting a decrease of 30%[21]. - General and administrative expenses increased by 39% year-on-year to 3.8million,upfrom3.8 million, up from 2.8 million, due to increased headcount and share incentive awards[23]. - The loss on sale of assets was 0.3millioninthefirsthalfofthecurrentfiscalyear,comparedtoagainof0.3 million in the first half of the current fiscal year, compared to a gain of 2.7 million in the prior year[24]. - Finance income was 3.5million,whilefinanceexpenseswere3.5 million, while finance expenses were 1.3 million, resulting in a net finance income of 2.2million[30][31].−Thefinanceexpensedecreasedsignificantlyto2.2 million[30][31]. - The finance expense decreased significantly to 247,000 in 2020 from 1,632,000in2019,reflectingbetterdebtmanagement[78].AssetsandCashFlow−Intangibleassetsincreasedby1,632,000 in 2019, reflecting better debt management[78]. Assets and Cash Flow - Intangible assets increased by 6.2 million to 36.0million,drivenby36.0 million, driven by 3.2 million in goodwill from the acquisition of Tembo and exchange rate movements[33]. - Cash and cash equivalents rose to 17.4millionfrom17.4 million from 2.8 million, primarily due to a net share capital raise of 26.4million[44].−Thecompanycompletedasharecapitalraisegeneratinggrossproceedsof26.4 million[44]. - The company completed a share capital raise generating gross proceeds of 28.8 million, with net proceeds of 26.4millionaftercosts[43].−Totalassetsincreasedto26.4 million after costs[43]. - Total assets increased to 83.6 million as of December 31, 2020, up from 62.4millionasofJune30,2020[76].−Netcashusedinoperatingactivitiesincreasedto62.4 million as of June 30, 2020[76]. - Net cash used in operating activities increased to 6,746,000 in 2020 from 3,130,000in2019,reflectinghigheroperationalcosts[78].−Cashandcashequivalentsattheendoftheperiodroseto3,130,000 in 2019, reflecting higher operational costs[78]. - Cash and cash equivalents at the end of the period rose to 17,398,000 in 2020 from 2,751,000in2019,showingimprovedliquidity[78].−Thecompanyexperiencedanetcashoutflowfrominvestingactivitiesof2,751,000 in 2019, showing improved liquidity[78]. - The company experienced a net cash outflow from investing activities of 1,366,000 in 2020, compared to a net inflow of 803,000in2019[78].OperationalDevelopments−VivoPower′sU.S.solarprojectportfoliohasacombinedpotentialelectricalgeneratingcapacityof1.8GWdc,with22projectstotalingapproximately963MWdcdiscontinuedduetovariousissues[61][62].−J.A.Martincompletedacontractforthe39MWdcMolongSolarFarm,bringingitstotalcompletedandcontractedsolarfarmstoover150MWdc[54].−Thecompanyrefinanceditsfundingfacilities,achievinga38803,000 in 2019[78]. Operational Developments - VivoPower's U.S. solar project portfolio has a combined potential electrical generating capacity of 1.8 GWdc, with 22 projects totaling approximately 963 MWdc discontinued due to various issues[61][62]. - J.A. Martin completed a contract for the 39 MWdc Molong Solar Farm, bringing its total completed and contracted solar farms to over 150 MWdc[54]. - The company refinanced its funding facilities, achieving a 38% reduction in costs and more flexible terms to support anticipated growth[52]. - Tembo's revenue was 0.4 million for the six months ended December 31, 2020, with a loss before tax of 0.5millionduetooperationaldisruptionsfromCOVID−19[67].−Thecompanyreportedagainonsolardevelopmentof0.5 million due to operational disruptions from COVID-19[67]. - The company reported a gain on solar development of 324,000 in 2020, a recovery from a loss of 2,707,000in2019[78].−Thedecreaseintradeandotherreceivableswas2,707,000 in 2019[78]. - The decrease in trade and other receivables was 671,000 in 2020, down from 1,714,000in2019,indicatingimprovedcollectionefforts[78].−Non−controllinginterestincreasedto1,714,000 in 2019, indicating improved collection efforts[78]. - Non-controlling interest increased to 1,816,000 as of December 31, 2020, compared to $77,000 in the previous year, indicating growth in subsidiary investments[80].