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During December and January, Leclanché secured CHF74.0m investment from its largest shareholder, Finexis, which management estimates is sufficient to fully finance the company through to Q219. It is seeking additional finance to take the company through to 2020, when it expects to be solidly EBITDA-positive. Importantly, the investment provides the cash to deliver on the pipeline of contracts already received for delivery during FY18, which total 55MWh of capacity. Lack of finance held back revenue growth during FY17, resulting in a c CHF40m (unaudited, estimated) loss after tax. As this is greater than the loss modelled in our estimates, we place these under review until the full FY17 results are announced in early April.
Written by
Leclanché |
Fully funded to Q219 |
Market update |
Renewable energy |
5 March 2018 |
Share price performance
Business description
Analyst
Leclanché is a research client of Edison Investment Research Limited |
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During December and January, Leclanché secured CHF74.0m investment from its largest shareholder, Finexis, which management estimates is sufficient to fully finance the company through to Q219. It is seeking additional finance to take the company through to 2020, when it expects to be solidly EBITDA-positive. Importantly, the investment provides the cash to deliver on the pipeline of contracts already received for delivery during FY18, which total 55MWh of capacity. Lack of finance held back revenue growth during FY17, resulting in a c CHF40m (unaudited, estimated) loss after tax. As this is greater than the loss modelled in our estimates, we place these under review until the full FY17 results are announced in early April.
Year end |
Revenue (CHFm) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/15 |
17.9 |
(32.9) |
(1.2) |
0.0 |
N/A |
N/A |
12/16 |
28.1 |
(36.8) |
(0.8) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, share-based payments.
CHF16.5m of the recent investment from Finexis is in the form of mandatory convertible notes. During March, these will be converted into 11.0m new shares to place the balance sheet in a net asset position. As the conversion will give Finexis a 54% stake in Leclanché, the Swiss Takeover Panel has issued an exemption so that Finexis is not obliged to bid for the remaining shares. Finexis has also provided an additional CHF57.5m of investment, CHF43.5m of which is in the form of convertible loan notes, the remainder a non-convertible facility maturing on 31 March 2020.
The priority is to deliver on the 55MWh of orders already received for completion during FY18. These include a 33MWh battery storage plant in Cremzow, Germany, a 4MWh project with NRStor in Canada, a 15MWh project with swb in Germany and a project to develop and install a network of 34 fast-charging stations along the Trans-Canada Highway.
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Disclaimer
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Disclaimer
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NeuroVive’s planned rights issue (subject to approval at the EGM) is expected to bring in a minimum guaranteed amount of at least SEK55m (gross), which would extend the cash reach to 2019 and past several R&D events. Namely, the company will be able to initiate two new clinical trials with both leading assets KL1333 (Phase I) for genetic mitochondrial diseases and NeuroSTAT (Phase II) for traumatic brain injury (TBI). In addition, the company will advance its broad preclinical portfolio, aiming to out-license one of the assets, NV556, for NASH. Our updated valuation is SEK1.44bn or SEK18.0/share compared to SEK1.38bn or SEK26.3/share previously.