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Last close As at 17/03/2023
-0.96
— 0.00 (0.00%)
Market capitalisation
288m
Research: Industrials
Initial data on Leclanché’s FY19 performance shows the adverse impact of delays to the St Kitts stationary energy storage project and suspension of cell manufacturing during August which caused deliveries in the e-mobility segment to be delayed. The order book for delivery during FY20 and FY21 exceeds CHF90m, excluding the St Kitts project which management now intends to build under a ‘build-own-operate’ (BOO) model. Our estimates remain under review until there is greater visibility regarding this project.
Leclanché |
Shift to build-own-operate model proposed |
FY19 key figures |
Renewable energy |
18 May 2020 |
Share price performance Business description
Analyst
Leclanché is a research client of Edison Investment Research Limited |
Initial data on Leclanché’s FY19 performance shows the adverse impact of delays to the St Kitts stationary energy storage project and suspension of cell manufacturing during August which caused deliveries in the e-mobility segment to be delayed. The order book for delivery during FY20 and FY21 exceeds CHF90m, excluding the St Kitts project which management now intends to build under a ‘build-own-operate’ (BOO) model. Our estimates remain under review until there is greater visibility regarding this project.
Year end |
Revenue (CHFm) |
EBITDA |
PAT |
DPS |
P/E |
Yield |
12/17 |
18.0 |
(31.8) |
(38.5) |
0.0 |
N/A |
N/A |
12/18 |
48.7 |
(39.1) |
(50.7) |
0.0 |
N/A |
N/A |
12/19* |
16.3 |
(58.9) |
(83.4) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. Unaudited key figures.
Further delays in completing financing for the 35.6MW solar farm and 44.2MWh battery energy storage project on St Kitts meant that construction, which had been expected to start in H218, has still not started. Financing was provisionally agreed in Q419, but then Leclanché decided to switch to a BOO model to secure a long-term profit stream. Alternative financing for this approach has yet to be finalised. As discussed in our October note, cell production resumed in early September but the shut-down meant that transport segment deliveries had to be rescheduled. Capacity constraints were exacerbated by difficulties in obtaining financing to expand cell production. Group revenues declined from CHF48.7m in FY18 to CHF16.3m in FY19. Because staffing was increased to support the ongoing e-transport and pending St Kitts projects, EBITDA losses widened by 51% y-o-y to CHF58.9m. The company has been allowed to delay publication of the FY19 accounts until 15 June at the latest.
The level of debt at the year end has not been disclosed, though on 4 May the company announced that it had obtained a subordination of CHF29.8m of the debt from majority shareholder FEFAM to address a negative net asset position (CHF2.1m) at end FY19.
Both the cell production and module assembly facilities have remained operational throughout the coronavirus pandemic, albeit at reduced output levels. There do not appear to be any supply chain constraints. However, expansion of production capacity will be affected by difficulties obtaining equipment, components for which are sourced from China. While demand for energy storage systems has not been affected so far, we note that it is possible that a severe recession may result in delays to investment in new projects.
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Research: Industrials
AAC Clyde Space’s Q1 report is encouraging, with a 60% increase in sales, modestly reduced EBITDA losses and a record order backlog of SEK183m. While the effects of COVID-19 lockdown measures are likely to be apparent from Q220, we expect these to be relatively limited so far. The management team is now working to deliver the increasing backlog, with rising activity through H220. AAC Clyde remains well positioned to participate in the growth of the New Space market given its leading positions in nanosatellites and subsystems.
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