Redflow reports low quarterly revenue amid customer delays

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Following a recent successful capital rising, the Brisbane-based battery supplier Redflow has announced underwhelming quarterly revenue results. In the final quarter of FY2019 ending on June 30, the ASX-listed Redflow saw a slowdown in delivery of batteries with cash receipts of only $74,000, as a result of delays in customer contract execution on a number of key projects.

Previously, the battery maker reported a growing acceptance of its zinc-bromine flow battery technology in key markets. It signed a collaboration agreement with Chinese zinc-bromine flow battery company ZbestPower to supply a 100 kwh energy storage solution for a solar and electric vehicle smart grid project in China, and entered into an agreement to provide batteries to Mobax South Africa to test a solution for existing mobile phone towers with a leading South African mobile network provider. 

In addition, the manufacturer has secured a preferred supplier status with green energy system integrator Soul Energy for the first in a series of infrastructure projects the New Zealand-headquartered company is planning to deploy throughout Australasia. Finally, it completed a successful capital raising to the tune of $8.4 million in May.

“We have made significant progress on our commercialisation strategy in key markets over the quarter and the successful $8.4 million capital raising supports our growth plans,” Redflow CEO Tim Harris said. “Some projects are progressing slower than we would like due to end customer delays, but we remain confident that we are well placed as these projects progress.”

As the company remains optimistic about its long-term opportunities, it also reports positive feedback regarding its recent deployments with Optus in the Daintree forest and the two childcare centres in Melbourne with the Knox City Council.

“Strategically, we see substantial opportunities to grow in China over the medium term, which is a key growth market for Redflow,” Harris said. “In addition, the partnership signed with Soul Energy and Mobax South Africa will allow us to scale our solutions in large markets where there are growing needs for storage solutions that deliver demonstrated performance and cost savings, compared to existing diesel and lead-acid power solutions.”

In its earlier oversea projects, Redflow supplied $1.6 million worth of its 10 kWh ZBM2 batteries to Fiji to power a new local digital television network. The systems were shipped from its Thai facility and installed by New Zeland’s Hitech Solutions. It also deployed 10 of its zinc-bromine flow batteries coupled with three li-ion batteries to store solar generated power in a far-flung village in northern Thailand.

In 2017, the ASX listed redox-flow supplier relocated its manufacturing facility to Thailand, which has resulted in lower fixed costs. The company reported the loss after income tax stood at about $11.9 million in FY18, down from $12.9 million in the previous fiscal year.

Marketed as ZCell and ZBM2, Redflow 10 kWh zinc-bromine flow batteries are designed for high cycle-rate, long time-base stationary energy storage applications in the residential, commercial & industrial and telecommunications sectors, and are scalable from a single battery installation through to grid-scale deployments.

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