Leclanché reports 56% revenue growth for 2016 in line with guidance and a strong growth outlook for 2017
: Leclanché SA (SIX: LECN), one of the world’s leading vertically integrated energy storage solution companies, announced recently its unaudited preliminary revenue of over CHF28 million for the year ended 31st December 2016, in line with guidance issued in last year’s Interim Report and October statement. Anil Srivastava, CEO of Leclanché SA, said: “This second consecutive year of above-market growth has been possible through successful ramping up of our execution capability. We have a solid base for delivering yet another year of growth in 2017. We are now focused on project financing and securing new projects for 2018 and beyond. Fundamentals for our business are strengthening considerably with improving traction and conversion across our pipeline.”
Revenue growth of approximately 56% for 2016 compared to 2015. Record 50MW / 22MWh of utility-scale energy storage projects are under construction in North America validating Company’s worldwide execution capability. Our 85MWh order backlog for delivery in 2017 is solid, further supported by the recent exclusivity agreement with a leading European utility to construct a 33MWh project in Germany. Our Company is on track to deliver above-market revenue growth in 2017. Growth is supported by the current pipeline of awarded and expected projects which stands at over 450 MWh. Guidance for breakeven EBITDA profitability above 100MWh production is envisaged by 2018. The previously announced funding plan to support our business plan is well-advanced, which shall draw upon a combination of project finance, corporate debt and equity investment from existing and new shareholders.
Capital efficiency continues to improve with increased access to off-balance sheet project financing. In December 2016, Maple Leaf LP, the holding company for our previously announced Canadian project, successfully secured a construction loan to build and commission the first two sites for IESO project totalling 12MWh (27MW) near Toronto, which represents the first portion of a 53MWh development for IESO. This follows financing by SGEM of our 10MWh (23MW) Marengo project in the Chicago-area which we announced in November 2016, for which we have already delivered the battery energy storage system. Leclanché is in advanced discussions with several parties in China as we continue to progress plans to develop strategic partnerships in the areas of technology licensing, low-cost manufacturing and access to the Chinese domestic market, in particular the more than $100bn e-transport market. However, our announced partnership with Narada remains on hold due to China’s widely reported capital controls and changes to local market technical specifications.Growth targets are subject to a number of factors, including supply chain capacity and timely access to capital. The company maintains its focus on capital efficiency and limiting shareholder dilution in funding growth.