Preliminary Income for 2022, market update, and financial outlook 2023 & 2024
Revenue from Sales and the completed EU project amounted to an Income of DKK 6.5 million for 2022.
As in the first three quarters, the smart building market once again contributed to the larger part of company revenue in Q4 2022. Total revenue from sales in Q4 ended at DKK 1.3 million, which was 29% higher than Q3 2022 and 246% compared to the same quarter last year. Revenue from sales for the full year 2022 was DKK 4.0 million.
As stated in the Q3 2022 interim report of 29 November 2022 (announcement #66), the company completed an EU project in Q4 2022, and the deferred income from this project was DKK 2.5 million. This will from an accounting perspective be classified as Other Income, rather than Revenue, albeit the financial outcome in regard to gross profit and operating profit remains the same.
Martin Løbel, CEO of LED iBond international comments:
“I’m delighted to see that LED iBond increased topline by 29% in Q4 2022 compared to Q3 2022. This is the third quarter in a row where revenue is growing. Q4 underlines the importance of the strategic initiatives in refocusing our smart building sales activities, where TRACY® has a strong edge and secondly to develop vertical farming solutions for the longer term. We continue to see an increase in the lead generation because of our focused sales and marketing activities and expect that more leads and a growing pipeline will result in increased sales in 2023”.
Market update - New orders for TRACY® INDUSTRY for Solar Carports and Parking facilities.
Solar Carports:
LED iBond is happy to announce orders for TRACY® INDUSTRY lighting panels for two solar carport projects; one in Germany and one in Netherlands representing an combined order value of approximately DKK 100K. The orders are not related and come from two different EU based solar carport specialists – both representing significant opportunity for LED iBond for additional sales in the future.
Parking facilities:
The installation of TRACY® INDUSTRY in By & Havn’s parking facility Lüders in Copenhagen, as reported in Announcement #66, has been completed. The installation involved more than 3,000 meters of TRACY® INDUSTRY lighting panels.
An outcome of the project at By & Havn’s parking facility is that it is a showcase for new customers. LED iBond is happy to announce that an additional customer on that inspiration has selected TRACY® INDUSTRY lighting panels for a retrofit project of a parking facility in Copenhagen representing an order value of approximately DKK 200K.
LED iBond receives good market feedback on TRACY® INDUSTRY having a good fit for both solar carports and indoor parking facilities (including retro fit of light in existing parking facilities) due to its elegant design, linear formfactor, and easy-to-install features.
LED iBond continues to focus on the parking segment; Martin Løbel says:
”We see results of our revised focused strategy with stronger execution of our sales processes and marketing activities leading to real orders in the smart building segment of high importance for LED iBond. The fact that a growing number of companies are showing interest in our TRACY® INDUSTRY, clearly shows that the product portfolio represents a promising product-market fit within carports and parking facilities. I expect to see even more traction and orders in the segment moving forward.”
Market update – More pilot projects for Vertical Farming (and Greenhouse farming)
Vertical farming continues to be dominated by pilot projects and the customers own consideration about optimized design and layout of larger factories with acceptable economics. However, high energy prices are troublesome for the vertical farming industry and will likely delay deployment of some farm installations around the world. LED iBond continues to receive several orders for smaller pilot projects but expect that the larger opportunities within vertical farming will most likely not materialize in large scale revenue in 2023.
Traditional indoor farming in greenhouses is an established industry in Denmark, Europe and many places around the world. Greenhouses produce a huge variety of edible plants, flowers, tropical plants, and trees. We see our products receiving increasing interest from the greenhouse industry, following increased marketing focus in Q4 towards this segment.
Greenhouses located on the Northern hemisphere, all use a combination of sunlight and artificially lighting panels, known as top-lighting panels. Due to increasing energy prices, the greenhouse industry is moving towards energy efficient LED based top-lighting panels.
LED iBond is exploring how LED iBond’s TRACY® Horticulture lighting panel can be applied in greenhouses as top-lighting and not only in vertical farms. The slim formfactor of TRACY® allow the combined use of sunlight and LED lighting. Compared to old light panel technology (High-intensity discharge lamps) widely used, TRACY® horticulture panel gives the greenhouse owner an energy cost saving of up to 50% and a lower CO2 footprint that helps the climate. The TRACY® Horticulture panels also allow for customized light spectrum and give higher light uniformity across the growth area compared to many other top-lighting LED solutions on market.
Initial dialogues with potential customers in Denmark and Northern America indicate clear interest in the TRACY® Horticulture solution. LED iBond will intensify focus on the greenhouse segment, in particular in Denmark and Europe, and expects to initiate the first test in a greenhouse in Q1 2023 to demonstrate performance and test mounting options under development.
Financial outlook 2023 & 2024
Following the strategic review initiatives, the current growing pipeline, the market situations, and the lengthy timeline of some sales cycles, the financial outlook for 2023 and 2024 is as follows:
- Revenue of DKK 6-12 million for 2023
- Positive cash flow from operations during 2024
