Business
Trading update and two new agreements signed
Trading update and two new agreements signed.
About this update from Gelion Plc
[{"type":"text","content":"\n\n15 August 2023\nGelion plc\n(\"Gelion\" or the \"Company\")\n \nTrading update and new agreements for progressing Zinc-based Energy Storage solution\n \nAgreements signed with The University of Sydney and Professor Yuan Chen\n \nGelion (AIM: GELN), the Anglo-Australian battery innovator, today provides an update on the Group's trading for the year ended 30 June 2023 and announces the signing of two agreements with The University of Sydney and Professor Yuan Chen for Gelion's Advanced Cathode Project, accelerating progress towards its Zinc-based Energy Storage Solution. The agreements are to utilise Gelion's recent zinc anode performance breakthroughs leading to Gelion's next generation of energy solutions - Gelion's Gen 5 Zinc Hybrid Cell.\n \nGelion's advanced Zinc technology offers not only a low cost, safe and robust chemistry, but by deploying it in a novel bromine-free hybrid cell format it also offers an inherently non-toxic improved power capability (higher currents) and cycle life performance. Initially, it is expected to be highly competitive against lead acid batteries in applications such as Stand-Alone Power Systems (SAPs), Voltage Regulation, Telecom, and home Uninterrupted Power Supplies (UPS), with market size estimated to be over US$7 billion. Following additional later development, Long Duration Energy Storage (LDES) applications will be targeted as well.\n \nTrading Update\n \nUnaudited financial results for the year ended 30 June 2023 are expected to be ahead of current guidance:\n\n\n\n\n· \n\n\nRevenues for the year are expected to be £2.0m ahead of current guidance of £1.7m.\n\n\n\n\n· \n\n\nAdjusted EBITDA loss* expected to be approximately £6.0m, lower than guidance of £6.4m.\n\n\n\n\n· \n\n\nNet cash at 30 June 2023 was £7.3m, marginally higher than the current guidance of £7.1m. The balance at 30 June 2023 is post the £3.0m cash used to acquire the Johnson Matthey Intellectual Property (IP) portfolio in March 2023.\n\n\n\n\n· \n\n\nSince March 2023, the Company has been focused on reducing costs and has taken steps to reduce cash consumption by c. £1.0m on an annualised basis.\n\n\n\n\n \n*Adjusted EBITDA loss (defined as the Earnings Before Interest, Tax, Depreciation, Amortisation, & other no...