Interim report H1 2024: Revenue growth in all verticals
COMPANY ANNOUNCEMENT NO. 105
Interim financial report for Q2 and H1 2024
Today, LED iBond International’s (LED iBond) Board of Directors approved the interim report for the second quarter (Q2) and first half (H1) of 2024. Martin Løbel, CEO of LED iBond International, comments:
“LED iBond continued its revenue growth in Q2 and H1. In H1, we have delivered several lighting solutions for solar carport projects in Austria and the UK. We have also delivered our HORTISABER™ lighting solution to one of the largest green house facilities in DK as well as a GRACY™ vertical farming solution to a European university. We have added more resources to sales and continued focus on marketing activities, why our pipeline is growing.”
Financial key figures
| TDKK | Q2 2024 |
Q2 2023 |
Change | H1 2024 |
H1 2023 |
Change |
| Profit & Loss | ||||||
| Revenue | 1,963 | 488 | 302% | 3,423 | 1,363 | 151% |
| Other operating income | 481 | 0 | - | 963 | 0 | - |
| Gross profit | 60 | -367 | - | -139 | -417 | 67% |
| EBITDA | -2,420 | -2,952 | 18% | -4,880 | -5,440 | 10% |
| EBIT | -3,749 | -4,745 | 21% | -7,700 | -8,991 | 14% |
| Profit before tax | -3,267 | -4,988 | 35% | -7,199 | -9,441 | 24% |
| Net Profit | -3,267 | -4,988 | 35% | -7,199 | -9,441 | 24% |
| Balance Sheet | ||||||
| Total assets | 27,884 | 36,774 | ||||
| Total equity | 6,146 | 21,548 | ||||
| Net working capital | -3,975 | -92 | ||||
| Net interest-bearing debt | 10,990 | 7,894 | ||||
| Cash | 583 | 2,389 | ||||
| Cash flow | ||||||
| Cash flow from operations | -2,984 | -1,773 | -68% | -5,575 | -5,041 | -11% |
| Cash flow from investments | -563 | -775 | 27% | -1,140 | -1,595 | 29% |
| Cash flow from financing | 2,742 | 0 | - | 2,742 | 0 | - |
| Cash flow for the period | -805 | -2,548 | 68% | -3,972 | -6,636 | 40% |
Tight liquidity
As stated in company announcement no. 104 of 22 July 2024, the company has ensured liquidity for the next short-term period – however not enough for the next 3 months, which is dependent upon an early release of the second milestone payment of DKK 2.75 million.
With the present outlook, the Company will not be able to meet the conditions for the release of the second milestone payment in November. Consequently, the Company is in negotiations with the investors who have committed to the original terms of the milestone payments to achieve an earlier release. At present, it is not clear whether this will be sufficient support.
Furthermore, the management and Board of Directors are currently assessing relevant opportunities to raise capital to support the business going forward, expected during Q4 2024.
Business development
- Solar carport market – We have entered new partnerships with European companies within solar carports and delivered lighting solutions to 3 solar carport projects in the UK and Austria. The new partnerships add to our pipeline of sales opportunities.
- Indoor farming – Our HORTISABER™ toplighting lamp has been delivered to one of the largest greenhouse facilities in DK. Moreover, we have two larger orders for more than 400 HORTISABER™ lamps combined that are planned for delivery later in 2024. Furthermore, we have delivered HORTISABER™ to some test projects, and more planned for delivery in Q4, and expect that positive outcome of the tests will allow us to be able to ramp up sales significantly in 2025. Greenhouse operators are in the process of transiting from old type of HPS based toplighting to the energy saving LED technology, and this transition is also fuelled by State & EU subsidies targeting CO2 savings in the greenhouse industry.
- Vertical farming – We continue to see interest in our GRACY solution for vertical farming due to its unique thin formfactor. We have delivered a customised GRACY vertical farming solution to a European university with a need to retrofit their 100+ growth champers with new LED lighting.
- Smart building market – We have refocused our marketing activity towards service station
market and promotes our newly redesigned GRACY SQR and RGS lamps. Due to the redesign, the lamps have lower production cost and have received significant interest from our customers, and as a result we expect increased revenue from this market.
Financial Development
- In Q2 2024, LED iBond generated revenues of TDKK 1,963, an increase of 302% relative to the same quarter last year. For H1 the revenue increased TDKK 2,060 to TDKK 3,423 (151%).
- EBITDA for Q2 2024 amounted to a loss of TDKK 2,420 an improvement of 18% relative to the same quarter last year. For H1 EBITDA the loss was TDKK 4,880 an improvement of TDKK 560 (10%) due to the revenue increase and lower staff costs. As of 30 June 2024, the number of FTEs was 10.
- Net profit for Q2 2024 amounted to a loss of TDKK 3,267 an improvement of TDKK 1,721 (34%) compared to the same quarter last year. For H1 the loss was TDKK 7,199 and the improvement was TDKK 2,242 (24%): The improvement is because of the increased EBITDA, lower depreciations and an increased financial income.
- Cash flow from operations in Q2 show an outflow of TDKK 2,984 against an outflow of TDKK 1,773 in Q2 2023. For the first half the outflow was TDKK 5,575 against TDKK 5,041. The revenue growth has required more working capital. For H1 2024, inventories increased by TDKK 1,424. The company is focused on optimising working capital as we ramp up.
- The cash out flow from investing activities was reduced from TDKK 775 to TDKK 563 in Q2 and for H1 from TDKK 1,595 to TDKK 1,140. This was due to a more focused investment strategy in development projects.
- In Q2, the total cash flow shows an outflow of TDKK 805 against an outflow of TDKK 2,548 in Q2 last year. For H1 the outflow was TDKK 3,972 against TDKK 6,636 in H1 2023. The improvement of TDKK 2,664 was due to the release of Milestone 1 as announced in Company Announcement no. 100 of 22 April 2024.
- At the end of H1 2024, total equity amounted to TDKK 6,146 compared to TDKK 13,350 on 31 December 2023.
- The cash balance stood at TDKK 583 at the end of H1 2024, as compared to TDKK 4,555 at the end of 2023.
- The company has chosen to continue to maintain its deferred tax asset to zero. Total tax losses carried forward per 31 December 2023 amounts to DKK 133.5 million representing a value of DKK 29 million of which none is reported on the balance sheet.
Patents and IPR update
- The patent application with the title A LED PLUG (EP4405613A1) has now been published. Link to the application: https://worldwide.espacenet.com/patent/search/family/083506275/publication/EP4405613A1?q=EP22782452
- Baldr Light ApS (CVR. 42193208) is partly owned by LED iBond International A/S (92.9%) with the purpose to develop and apply for a patent for a new lighting technology capable of generating FAR UV lightning for disinfection purposes. The US patent application with the title A LIGHT EMITTING DEVICE (US2024/0162384) has now been published in the US. Link to the application: https://worldwide.espacenet.com/patent/search/family/080820145/publication/US2024162384A1?q=US2024%2F0162384
Number of Shares
On 30 June 2024, the number of outstanding shares in LED iBond International A/S was 38,708,015, unchanged from Q1 and the beginning of the year.
Financial calendar
- Interim financial report Q3 2024 26 November 2024
- Q4 2024 Results and Annual report 2024 26 March 2025
- Annual General Meeting 24 April 2025
Financial outlook 2024 & 2025
Based on the current orders and pipeline, the board of directors and the executive management maintain the financial outlook stated in company announcement no. 104 of 22 July 2024:
- Revenue of DKK 7 – 8 million for 2024
- Positive cash flow from operations by the end of 2025
The interim H1 report for 2024 is attached to this company announcement and is also available on: https://ledibond.com/financial-reports
