VivoPower International PLC (VVPR) Q2 2021 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the Viva Power International half-year results presentation for the six months ended 31 December 2020. I'm going to kick off with a strategic and operational review, and then I'll also cover the financial review for the period. So just going straight to the executive summary, which is set out on page three. The headline is our results for the half-year were affected by strict COVID lockdowns. But our growth outlook is very strong as a result of the Tembo acquisition. Our revenues declined 28% year-on-year to 22.7 mil, primarily as a result of strict COVID-19 lockdowns in Australia, causing delays to schedule works for our Avetis business units. As a consequence, gross profit decreased 18% year-on-year to 4.6 mil, And notwithstanding that, our GP margin did improve to 20% versus 18% in the previous corresponding year. And that was the result of strong focus on project execution and labor efficiency. Our EBITDA declined to 1.2 mil for the half-year period from 4.2 mil in the previous corresponding period. Again, the primary drivers were the COVID lockdown-related revenue drop But in addition, we did increase our headcount to support the hyperscaling of the Tembo business. Our balance sheet has been, however, fortified with the capital raising that was consummated in October 2020, raising gross figure of $28.75 million. Our cash balance as a result has increased from $2.8 million at the end of June 2020 to $17.4 million as at 31 December of the same year. We also refinanced our parent company shareholder loan. This was consummated in January with a longer maturity date and lower interest rates, which reflects the improved credit profile of the company. As I mentioned at the outset, the Tembo acquisition has really transformed the growth trajectory of Viva Pow...