Electricity storage system company, RedFlow Limited (ASX:RFX), announced today that it had been a year of delivery for the company in which it successfully achieved key initiatives outlined in its IPO prospectus.
Since listing on the ASX in December 2010, RedFlow has achieved significant milestones including the company-wide upgrade of organisational capability, completing a major Brisbane factory expansion and winning its largest-ever sales contract.
In addressing the company’s AGM today, Chairman Peter Pursey AM, said RedFlow’s first year as a listed company had delivered significant highlights, most notably the signing of a manufacturing agreement with Jabil Circuit, a highly experienced global contract manufacturer, for its zinc-bromine battery module (ZBM) production.
“The manufacturing agreement with Jabil achieves a key milestone for RedFlow, as it secures the path for large scale ZBM supply,’’ Mr Pursey said.
“The first Jabil manufactured ZBM component, the core conductive plastic electrode, was supplied to RedFlow in October, with regular ongoing monthly shipments scheduled.
“This is a significant first step under the agreement, which we expect will transition to commercial scale production of the complete ZBM in mid 2012.
“This schedule is nine months ahead of the program outlined in our November 2010 Prospectus,’’ he said.
Mr Pursey said the company maintained a strategic competitive advantage due to innovations such as its “flow” battery technology.
“With a continued focus on innovation and expanding production, we anticipate delivering increasing value from our products and markets in the 2012 calendar year,’’ he said.
The company is highly optimistic about the year ahead where increasing peak electricity load requirements, rising electricity costs and the ever increasing uptake of new technologies that use electricity will continue to drive strong demand for electricity storage both in Australia and overseas.
“A prime focus for RedFlow will be to convert that demand into commercial sales,’’ Mr Pursey said.
RedFlow has announced financial results in line with expectations recording a loss of $7.3 million with statutory revenue of $2.25 million.
“The earlier than expected move to outsourced manufacturing has brought forward the timeline to progress our commercial plans.
To fund this, RedFlow raised $12 million with a share placement in August 2011, and $842,000 from a Share Purchase Plan in September.
“These funds provide RedFlow with a stronger balance sheet and further enable us to progress our commercial goals in 2012. The Company’s cash balance as at the end of September 2011 was $15.9 million with no corporate debt,’’ Mr Pursey said.
RedFlow said a key priority for 2012 would be managing the scaling-up of its manufacturing operations and ensuring coordinated growth with the sales and marketing plans.
This commercialisation effort is being planned and managed via a sales and marketing strategy in a staged and deliberate manner both domestically and overseas.
RedFlow is committed to a balanced and focused approach in managing the risks associated with commercial expansion and entering new markets.
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