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Invinity Energy Systems PLC on Friday said global market and policy developments, while positive, have led to a more protracted sales cycle. Invinity Energy shares fell 38% to 12.17 pence each on Friday morning in London. The London-based utility-grade energy storage manufacturer said the market for long duration energy storage continued to develop favourably, adding that alternative battery technologies and domestic supply chains become an increasing priority for decision makers in the UK, EU, North America and Australia. Further, Invinity Energy said the development of Mistral is progressing ‘strongly’. However, it noted that additional time is needed to complete the cost of cost reduction exercise ahead of volume rollout. It said a more cautious increase in Mistral deliveries during the first half of 2025 was ‘prudent’. This ‘will set the stage for further growth in volumes in H2 2025 before commencing full volume production in 2026 when the company intends to achieve earnings before interest, tax, depreciation and amortisation break-even.’ The company highlighted: ‘Global market and policy developments, and the recent change of government in the UK, are positive indicators for Invinity. However, they have led to a more protracted sales cycle as the company’s prospective customers assess the impact on their projects. Examples include the final outcome of the consultation on a proposed LDES Cap & Floor mechanism in the UK and the confirmation of further details around the role and mandate of newly launched GB Energy.’ Chief Executive Officer Jonathan Marren said: ‘The development team, in collaboration with our joint development and commercialisation partner, have rightly focused on ensuring that Mistral is capable of delivering the performance characteristics being demanded by customers and the market; I am very pleased with the results to date. We aren’t yet where we wanted to be on working through the identified initiatives aimed at reducing production costs to the level we believe we can attain but have confidence this can be achieved in 2025 ahead of material volumes at sustainable margins in 2026 and beyond.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
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