VivoPower reports 1H revenue $5.9M vs. $8.7M last year

Highlights for the half year ended December 31, 2023: Revenue from continuing operations declined to $5.9 million, from $8.7 million in the half year ended December 31, 2022, reflecting a disciplined refocus on profitable revenues, especially from the Critical Power Services business unit, adverse foreign exchange movements and a heightened focus on scaling up the Electric Vehicle business unit. Net after-tax loss from continuing operations decreased to $7.8 million, as compared to a loss of $10.4 million in the half year ended December 31, 2022 despite the decline in revenues and increasing headcount in Tembo UK and Australia. This was aided by the focus on higher margin revenues as well as technology and outsourcing driven efficiency savings and reduced non-recurring costs. Tembo signed a definitive joint venture agreement with Francisco Motor Corporation in September 2023 to develop and supply electric utility vehicle electrification kits for a new generation of electric jeepneys in the Philippines. VivoPower signed a joint venture with Geminum Pty Ltd in October 2023 to design, test and implement digital twins of Tembo’s EUVs and ancillary Vivopower sustainable energy solutions. VivoPower’s Solar Development business unit has secured board and shareholder approval to spin off the majority of its portfolio in exchange for a distribution in kind in the form of stock in the spin off entity. Tembo was honoured with the electrical vehicle innovation of the year award at the Tech Innovation Awards 2023 hosted in Dubai. “Our unaudited preliminary half year results reflect a heightened focus on profitable revenues as well as technology and outsourcing driven efficiency cost savings. As a result, while our revenues declined, our net loss from continuing operations contracted. Notwithstanding a very challenging macro environment for electric vehicle companies, we have made significant strategic and commercial progress with Tembo, our Electric Vehicle business unit. On the commercial front, in September 2023, Tembo signed a definitive joint venture agreement with Francisco Motor Corporation to develop and supply EUV electrification kits for a new generation of electric jeepneys in the Philippines, which is expected to open up an estimated $10 billion total addressable market opportunity. On the operational front, we completed our first shipment of the next generation EUV conversion kits while our next generation pilot vehicle has now travelled more than 1000km without any issues as the team focuses on preparing the ramp-up in assembly required to meet the demand from our existing partners and customers. Further, following December 31, 2023, we achieved certain milestones required to proceed to a follow on strategic direct investment of $5 million into Tembo at a pre-money valuation of $120 million, from a private investment office based by a member of the ruling Al Maktoum family of Dubai. With regards to our Solar Development business unit, we have secured Board approval for the spin off of the majority of our Solar Development assets based in the United States in exchange for a distribution in kind in the form of stock in the spin off entity. We expect the spin off to be completed before our fiscal year end. Finally, for our Sustainable Energy Solutions business unit, we signed a joint venture with Geminum Pty Ltd in October 2023 to design, test and implement digital twins of Tembo’s EUVs and ancillary Vivopower sustainable energy solutions”.