27 Jan 2021 08:11
Verditek PLC
("Verditek" or the "Company")
Year-end Update
Verditek plc, (AIM:VDTK), the international clean technology company that develops, manufactures and sells certified lightweight solar panels, wishes to update the market following the end to its financial year on 31 December 2020.
2020 was a year of change for Verditek with new management in all areas of the business installed during the year and several significant steps taken towards the commercialisation of its core product, lightweight flexible solar panels.
During the fourth quarter of the year production was ramped up at its manufacturing plant near Milan to fulfil existing and anticipated orders. Several operational challenges had to be overcome, but the Board can report that it was able to demonstrate its capacity by running two shifts on one production line for the early part of December.
Bespoke solutions sought by customers required front-end design and procurement work which caused some delays. Work on the PowerMat solution (a containerised, quick deployment and minimal infrastructure solar solution) has resulted in two design offerings going into production, one of which will be used to fulfil the InterGroup mining order announced on 24 September 2020. It is now expected that the order will be shipped to Australia in the first quarter of 2021.
Despite the Company's plant being located in an area where the levels of the Covid-19 pandemic have been high, the interruption at factory level has been low so far. However, the pandemic and in particular the second surge in infections in the autumn have had a significant commercial impact with opportunities and trials continuing to be delayed. Not only has this impeded our sales team's efforts post widespread lockdowns from November onwards, but it has led to greater caution among our customers thereby delaying the expected conversion of our sales pipeline.
As announced on 17 December 2020, orders including the $2.2 million, 1.5MW SAF Pakistan order have been delayed. This has meant that the previously stated ambition of being cash flow positive on a monthly basis by the end of 2020, was not met. Revenues recognised in the year will be minimal. Cash balances as at 31 December 2020 were circa £1.7m and the Company is currently debt free. The Company has just under 1MW of finished panels in stock ready to ship and, as a result of the delays, production at the factory has been reduced to November 2020 levels.
The Board remains optimistic that, with the advent of mass vaccination globally, companies will soon return to acting on their green energy requirements and that the Company's prospects can convert into firm orders.
Enquiries:
Verditek plc Rob Richards, CEO Tim Bowen, CFO
| Tel: +44 (0)20 7129 1110 |
WH Ireland Limited - NOMAD and Broker |
Tel: +44 (0)20 7220 1666 |
Chris Hardie Matthew Chan |
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About Verditek plc:
AIM listed Verditek plc is a holding company with three businesses operating within the clean technology sector. The Company is focused on commercializing our lightweight low-profile solar panel business. With manufacturing based in Lainate Italy, we have developed renewable power solutions for our customers, that drive solar energy into applications previously unachievable. The exceptional properties of our solar panels replace diesel fuel in business such as perishable goods transport, off-grid telecommunication towers, electric vehicle charging stations, residential and holiday home power solutions and solar roofing for light-weight industrial roofing. In addition to our current PV panels in production, we have partnered with an outstanding leader in graphene technology, Paragraf, and have created the worlds' first Graphene Integrated Photo Voltaic cell. We are working together to engineer the technology for commercialization.
Verditek provides compelling commercial solutions that help to make our customer's businesses sustainable.
For more information please visit or contact the following: https://verditek.com/