PRESS RELEASE
- Strong annual revenue growth (+32%)
- Results in line with forecasts, with breakeven in the second half
- 2025-26guidance confirmed
- October 2024: announcement of new ambitions
Quimper, 25 June 2024, 5.45 p.m. - Entech (FR0014004362 - ALESE), a technology company specialising in the storage and intelligent management of renewable energies, is publishing results for the 2023-24 financial year (ended 31 March 2024) in line with forecasts.
Entech's two main businesses, Storage and Production, each accounted for half of 2023-24annual revenue and grew at a similar pace over the year:
- The Storage business (+40% to €22.6m) benefited from a ramp-upin increasingly large contracts;
- The photovoltaic energy Production business (+36% to €22.6m) continued to be driven by the sale of ground-basedpower plants on behalf of electricity producers. Activity was also underpinned by growing demand for solar roofs from farmers, manufacturers and shopping centres seeking to reduce their carbon footprint and energy bills through self-consumption(with or without storage) and, in some cases, the resale of part of the energy produced.
The start of the year reflected the investment strategy aimed at supporting the strong growth in activity, but the company achieved breakeven in the second half of the year.
Annual results (€k) | H1 2023-24 | H2 2023-24 | 31.03.2024 | 31.03.2023 | Change | ||||||||||
(6 months) | (6 months) | (12 months) | (12 months) | ||||||||||||
Revenue | 17,556 | 27,912 | 45,468 | 34,327 | +32% | ||||||||||
Operating income | 18,815 | 30,292 | 49,106 | 35,569 | +38% | ||||||||||
Gross margin | 5,030 | 7,055 | 12,085 | 9,698 | +25% | ||||||||||
As a % of revenue | 28.6% | 25.3% | 26.6% | 28.2% | |||||||||||
EBITDA | -1,296 | 100 | -1,196 | -397 | 202% | ||||||||||
As a % of revenue | -7.4% | 0.4% | -2.6% | -1.1% | |||||||||||
Current income/loss | -2,987 | -372 | -3,359 | -1,202 | 179% | ||||||||||
As a % of revenue | -17.0% | -1.3% | -7.4% | -3.5% | |||||||||||
Net income/(loss) | -2,973 | 51 | -2,922 | -741 | +294% | ||||||||||
As a % of revenue | -16.9% | 0.2% | -6.4% | -2.2% | |||||||||||
These annual accounts were approved by the Board of Directors on 25 June 2024.
The statutory auditor's report is currently being prepared.
www.entech-se.com
PRESS RELEASE
Gross margin contracted by 1.6 points on strong business growth and pressure on the supply of certain components.
EBITDA was down €1.2m for the financial year but, as expected, reached breakeven in the second half of the year, at €0.1m. External expenses accounted for 8.1% of revenue, compared with 8.8% in 2022-23,and personnel
expenses (excluding subcontracting, included in gross margin) for 21.4% of revenue, compared with 20.4% in 2022-23. The average headcount in 2023-24 was 137, compared with 112 in 2022-23. Recruitments were mainly aimed at strengthening the Operations and Sales teams. Entech is now structured to support the expected ramp- up in business activity.
Net income came out at a loss of €2.9m for the year, again with breakeven achieved in the second half.
Fixed assets increased by €2.7m, a result in particular of the capitalisation of R&D projects to the tune of €2.4m (of which €2.2m already in fixed assets at 31 March 2023), offset by depreciation charges totalling €1.1m.
Entech had a solid balance sheet at 31 March 2024 with equity of €26.2m and a free cash flow of €9.7m. Financial debt increased by €10.6m owing to the implementation in October 2023 of syndicated banking debt totalling €12.3m on 31 March 2024 (out of the €15m available). The company also honoured its bank loan maturities in the amount of €1.8m. The debt ratio thus rose from 0.22 at 31 March 2023 to 0.65 at 31 March 2024.
The operating working capital requirement amounted to €18.4m, i.e. 146 days of revenue excluding tax, compared
with 152 days of revenue excluding tax at 31 March 2023.
Balance sheet (€k) | At 31.03.2024 | At 31.03.2023 |
Fixed assets | 7,498 | 4,754 |
Current assets | 52,428 | 42,789 |
o/w cash and cash equivalents | 9,720 | 11,152 |
Total ASSETS | 59,9246 | 47,543 |
Shareholders' equity | 26,200 | 29,109 |
Other equity | 330 | 409 |
Provisions | 241 | 103 |
Financial liabilities | 17,020 | 6,431 |
Current liabilities | 16,135 | 11,492 |
Total LIABILITIES | 59,9246 | 47,543 |
Entech enjoys substantial visibility for FY 2024-25 with an order book of €41m at 31/03/2024 compared with €32m a year earlier. This strong order book does not take into account the business successes recorded since
the end of the financial year, which will fuel business growth in the coming months.
The company can now rely on a strengthened organisational structure and a mature technological base to step up development both in its core business and in large-scale HV projects market through its partnership with
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PRESS RELEASE
Eiffage Énergie Systèmes1. The joint venture will make a marginal contribution to the Company's revenue in FY 2024-25,with business expected to fully ramp up in FY 2025-26.
As part of this partnership, initial orders are expected by the end of December 2024.
Entech is thus confirming its guidance for 2025-26 (financial year ending 31 March 2026), for revenue of around €130m and an EBITDA margin of around 20%. The Group will share its new medium-termambitions with the
market in October 2024.
Entech's new roadmap, based on a calendar fiscal year starting on 01/01/20252, will incorporate the strong impact expected from the partnership with Eiffage, as well as the gradual contribution of new growth drivers on which
Entech's Innovation teams have been working for several years now.
Upcoming events:
- 10 September 2024: Shareholders' Meeting
- 26 November 2024 after market: H1 2024-25 revenue
To meet the technical challenges posed by the sharp increase in renewable energies in the energy mix, Entech facilitates the massive-scale integration of renewable energies and access to energy through its storage and power conversion solutions managed by intelligent software systems.
A constructor for new energies, Entech develops, builds and operates production plants and battery or hydrogen storage systems, in both on-grid and off-grid configurations. Since its formation in Quimper in 2016, Entech has completed 300 projects worldwide and now employs 175 people.
Selected by French Tech in its 2021 Green20 programme and the winner of numerous awards in recognition of its capacity for innovation to benefit energy transition, Entech is committed to responsible business practice, both in environmental terms and from a social and societal perspective.
More information:https://www.entech-se.com/and onLinkedIn
Contacts
ENTECH | SEITOSEI.ACTIFIN | SEITOSEI.ACTIFIN |
Head of CSR and Communication | Investor Relations | Press Relations |
Gaël Le Goc | Jean-Yves Barbara | Isabelle Dray |
gael.legoc@entech-se.com | jean-yves.barbara@seitosei-actifin.comIsabelle.dray@seitosei-actifin.com | |
+33 2 98 94 44 48 | +33 1 56 88 11 13 | +33 1 56 88 11 29 |
- On 16 May 2024, Entech and Eiffage Énergie Systèmes announced the creation of a joint venture dedicated to large energy storage projects connected to the high-voltage grid.
2 The change in the closing date from 31 March 2025 to 31 December 2024 will be subjected to the vote of the shareholders at the next General Meeting.
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Entech SA published this content on 25 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 June 2024 16:23:52 UTC.