VivoPower Reports Unaudited Financial Results For the Six Months Ended December 31, 2019
VivoPower comprises one of the largest solar project portfolios in the United States, solar development projects in Australia as well as a fast growing Australian critical power services group, Aevitas (which comprises two businesses, J.A. Martin and Kenshaw). The VivoPower business has not been without challenges, which we have documented in the past, read more on that, here.
The exceptional turnaround was fuelled by Aevitas, the critical power services group that was once considered an “unfixable write off” by a number of former stakeholders. In fact a former chairman strongly advocated to place the group into voluntary administration a few years ago. However, following a strategy transformation initiated by Arowana and with focussed execution, especially in the last 12 months, Aevitas is becoming another #hyperturnaround out of the Arowana stable of companies. This unfixable writeoff has now completed its turnaround phase and is experiencing a new set of challenges, associated with hypergrowth businesses.
However, as Arowana parachuted in to support the management team, together we were able to execute on this #hyperturnaround, and this period, the VivoPower group delivered the following key results:
- Group revenue increased 63% year-on-year to US$31.4 million, driven by record results and contribution from the Critical Power Services business (Aevitas) in Australia
- Positive adjusted EBITDA of US$5.5 million earned in six months, compared to a loss of US$0.6 million in the comparative period
- Profit after tax of US$1.1 million earned for the period – the Group’s first profit reported since March 2017
- Earnings per share (EPS) of US$0.12 for the period, compared to a loss of US$0.30 in the comparative period
VivoPower Australia also contributed to the result by successfully monetising the Sun Connect solar portfolio, comprised of 53 operating solar projects, representing a 2.0x multiple on invested capital and an unlevered IRR of 20.1% before tax.
The Aevitas group is now focused on building its forward order book and growing its business development pipeline across a range of new industry sectors with significant growth tailwinds, including solar, data centres, and healthcare to further drive sustainable growth.
VivoPower is also executing on its strategy to drive value maximisation in relation to its U.S. solar project portfolio with a view to monetization. This includes discussions with the joint venture partner to enable VivoPower to take control of the joint venture.
Kevin Chin, Arowana CEO and VivoPower’s Chairman, stated: “We have had to overcome a myriad of challenges for VivoPower since its IPO. The focus, dedication and resilience of the leadership team over the past 12 months has been key to the strong turnaround and growth of VivoPower, particularly in Australia. Our objective now is to build on the base that we have created and continue to scale up the business in a sustainable and profitable manner. In addition, we remain very focused on driving value creation for our US solar portfolio with a view to maximising proceeds from monetisation. This will then pave the way to consideration of a strategic pivot at the appropriate time, as previously flagged.”
Read the full VivoPower story here.
Read the press release here.