Record annual revenues of $48.7 million, despite COVID-19 lockdowns
Strong turnaround in adjusted EBITDA with an increase of $7.7m to $3.9 million
Strategic pivot to enter commercial electric vehicle (EV) market
Highlights for the fiscal year ended June 30, 2020:
- Record annual group revenues of $48.7 million, up 12% year-on-year, driven by strong growth in Aevitas, VivoPower’s critical power services business unit in Australia, despite strict COVID-19 lockdowns in Australia over a three-month period that caused extensive delays to scheduled work projects;
- Gross profit increased by 28% as a result of revenue growth combined with operational efficiencies and gross profit margin improvements driven in part by new pricing initiatives;
- Reduction of $1.7 million in group overheads, reflecting continued execution of lean management initiatives in solar development and corporate office segments, in addition to a 2% reduction in Aevitas overheads notwithstanding revenue growth;
- A $4.3 million improvement in solar development project net gains, resulting from sale of VivoRex and Sun Connect during the year;
- An increase in adjusted EBITDA of $7.7 million to $3.9 million, compared to a $3.8 million EBITDA loss in FY19;
- Statutory net after-tax loss of ($5.1) million for FY20 and earnings per share (EPS) of ($0.38) per share, as compared to a ($11.3) million loss and ($0.83) per share in FY19; and
- Adjusted net after-tax loss of ($1.7) million and adjusted EPS of ($0.12) per share as compared to a ($8.9) million loss and ($0.66) per share respectively for FY19.
A reconciliation of IFRS (International Financial Reporting Standards) to non-IFRS financial measures has been provided in the financial statement table included in the full earnings press release, which can be found here. An explanation of these measures is also included in the press release, under the heading, “About Non-IFRS Financial Measures”.
All amounts shown for the year ended June 30, 2019, are unaudited.
Following the completion of a twelve-month strategic review, VivoPower is expanding into the electric vehicle (EV) sector. The decision to expand into EVs was driven by interest from VivoPower’s existing customer base. The company expects to initially focus on providing light electric vehicles to customers in the Australian mining and infrastructure sectors before expanding globally. The light commercial vehicle fleet market (including pick-up trucks) is worth an estimated $12 billion in Australia alone, with most of the market represented by mining and infrastructure. VivoPower’s EV strategy will be differentiated in that it features a holistic, three-pronged sustainable energy solution (SES) to customers, which will include:
- EV and battery leasing;
- Critical power retrofits of premises (e.g., warehouses and depots) to enable optimised EV battery charging and microgrids; and
- EV battery second life applications.
VivoPower’s Annual Results Presentation can be viewed here.