Leclanché

SW: LECN

CHF188.4m market cap

CHF1.23 last close

Leclanché is a fully vertically integrated energy storage solution provider. It delivers a wide range of energy storage solutions for homes, small offices, large industries and electricity grids as well as hybridisation for mass transport systems such as bus fleets and ferries.

Investment summary

Leclanché’s H119 performance was adversely affected by delays in completing financing for the St Kitts project. Management had expected construction to start in Q219 but it has been pushed back to Q419. Given the scale of this project, which is the largest the company has undertaken to date, our estimates remain under review until there is greater visibility on when different phases of the project are scheduled to complete.

Y/E Dec
Revenue (CHFm)
EBITDA (CHFm)
PBT (CHFm)
EPS (fd) (CHFc)
P/E (x)
P/CF (x)
2017A 18.0 (31.1) (37.8) (68.3) N/A N/A
2018A 48.7 (36.9) (47.8) (61.5) N/A N/A
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Industry outlook

Including c US$57m for the turnkey EPC contract in St Kitts, which remains subject to completion of due diligence by the financing entity in November, the group’s order book for delivery in H219 and FY20 is CHF120m. There is an additional CHF166m of qualified pipeline projects for delivery in FY20–FY23 including lithium-ion battery systems for Bombardier trains. However, to execute on these projects and be certain of continuing as a going concern, management is raising CHF30.0m to finance working capital requirements for FY20 and CHF40.0m to increase both cell and module production capacity.

Last updated on 21/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (CHFm) 35.7
Forecast gearing ratio (%) 139
Price performance
%
1m
3m
12m
Actual (14.3) (25.1) (26.6)
Relative* (17.2) (28.6) (37.3)
52-week high/low CHF2.1/CHF1.2
*% relative to local index
Key management
David Ishag Chairman
Anil Srivastava CEO
Hubert Angleys FD