Leclanché (LECN)

Business description

Leclanché is a fully vertically integrated energy storage solution provider. It delivers a wide range of energy storage solutions for homes, small offices, large industries and electricity grids as well as hybridisation for mass transport systems such as bus fleets and ferries.

Y/E Dec Revenue (CHFm) EBITDA (CHFm) PBT (CHFm) EPS (fd) (CHFc) P/E (x) P/CF (x)
2015A 17.9 (26.0) (32.9) (115.2) N/A N/A
2016A 28.1 (26.6) (36.8) (85.0) N/A N/A
2017E 28.1 (18.4) (22.6) (44.0) N/A N/A
2018E 114.7 1.4 (2.6) (3.8) N/A N/A

Last updated on 21/02/2018

Investment summary

During December and January, Leclanché secured CHF74.0m investment from its largest shareholder, Finexis, which management estimates is sufficient to fully finance the company through to Q219. It is seeking additional finance to take the company through to 2020, when it expects to be solidly EBITDA-positive. Importantly, the investment provides the cash to deliver on the pipeline of contracts already received for delivery during FY18, which total 55MWh of capacity. Lack of finance held back revenue growth during FY17, resulting in a c CHF40m (unaudited, estimated) loss after tax. As this is greater than the loss modelled in our estimates, we place these under review until the full FY17 results are announced in early April.

Last updated on 05/03/2018

Industry outlook

The project highlights how battery energy storage systems are playing an increasingly important role in grid stabilisation. They provided about 200MW of power, representing 31% of the German requirement in 2017. Demand for battery energy storage continues to grow as energy generation shifts further in favour of renewables. Wind and solar parks and biomass plants dotted across the EU raised their share of gross generation 20.9% of all power in 2017, ahead of power from lignite and hard coal at 20.6%. A year earlier, electricity from coal was ahead at 21.5% of the mix to clean power’s 18.8%.

Last updated on 02/03/2018

Key management

Anil Srivastava, CEO
Hubert Angleys, FD

Company address

Avenue des Sports 42
CH – 1400
+41 24 424 65 00
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