Despite revenues flatlining and the operating loss increasing by another €1.2m (£1.03m) since the 2016 half-year, things are looking up for redT Energy (RED), particularly given that staff numbers have doubled year on year.
The negative financials may have raised eyebrows a week or so prior to publication of these figures, but in the intervening period the company – a developer of vanadium redox energy storage systems – has received orders for 26 of its modules. A dozen of the orders (part of a potential 300-unit pipeline) were linked to new partnership agreements with central & eastern European and southeast Asian distributors, with the remaining energy storage units bound for an unnamed Botswana-based customer.
Analysts at VSA Capital view the latter deal as potentially significant from a marketing angle as redT’s technology is replacing failing lithium-ion and lead-acid products, thereby providing a practical example of “the advantages of flow machines over more traditional forms of storage”.
The West Lothian company has previously noted that its chief competitor, Austria-based Gildemeister Energy Storage, had entered insolvency proceedings. Only with the benefit of hindsight will we be able to gauge whether that represents a positive or negative development for redT.
| REDT ENERGY (RED) | ||||
| ORD PRICE: | 10.4p | MARKET VALUE: | £67.8m | |
| TOUCH: | 10-10.8p | 12-MONTH HIGH: | 17p | LOW: 7p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 4.2¢* | NET CASH: | €13.2m | |
| Half-year to | Turnover | Pre-tax | Earnings per | Dividend |
| 30 Jun | (€m) | profit (€m) | share (¢) | per share (¢) |
| 2016 | 4.53 | -2.5 | -0.6 | nil |
| 2017 | 4.49 | -3.8 | -0.5 | nil |
| % change | -1 | - | - | - |
| Ex-div: | - | |||
| Payment: | - | |||
| *Includes intangible assets of €15m, or 2.3¢ a share £1=€1.14 | ||||
