Interim report for the second quarter and first half of 2021
Half-year revenue up 81 %, solid pipeline,
revised financial outlook due to COVID-19
Today, LED iBond International’s (LED iBond) Board of Directors approved the interim report for the second quarter (Q2) of 2021. Highlights of the report include:
Business development
- In general, LED iBond’s sales pipeline is solid and grows at a steady pace.
- Vertical farming: The vertical farming market, in particular, is showing continued strong growth. LED iBond has received a substantial number of requests for proposals for lighting solutions for indoor farming projects. The company has agreed to deliver a small-scale vertical farming test facility in Q3 to demonstrate the superiority of LED iBond’s vertical farming solution. Pending offers for vertical farming equipment amounts to tens of millions of DKK.
- However, the widespread COVID-19 related slowdown still affects many global markets, delaying LED iBond’s commercial development, especially within smart buildings and UV-C disinfection. Some sales processes are dragging out, and some ongoing customer projects are delayed due to travel restrictions, transportation bottlenecks, component shortages and temporary reprioritisations. LED iBond foresees that these market challenges will persist for the remainder of 2021 and may extend into 2022.
- Smart buildings: Supply chain bottlenecks and general uncertainties are causing delays in many smart building segments. For instance, an extensive elevator renovation project in Singapore has been paused since April 2020, awaiting the reopening of non-critical projects by the Singapore government. A notable exception is the gas station segment, where several lighting renovation projects have recently been resumed. Also, the EUDP development project for intelligent infrastructure solutions is progressing as planned.
- UV-C disinfection: LED iBond’s disinfection systems and manufacturing facilities for airport security checkpoints are now fully developed and approved for international sales by Intertek, Sweden. However, the general market slowdown is curbing airport investments. Consequently, the previously announced order for 50 disinfection systems for airport security checkpoints has been postponed, and a new delivery date has not yet been agreed. As LED iBond’s UV-C disinfection technology can effectively supplement vaccines and other countermeasures for the COVID-19 pandemic, the company is reviewing the go-to-market plan and product portfolio for the UV-C disinfection business line.
Financial outlook revision
- The executive management and Board of Directors remain convinced of the market opportunities of LED iBond in the coming years, which exceed the current revenue guidance of DKK 100 million.
- However, in view of the current market situation, the company has revised its financial outlook as follows:
- Positive cash flow from operations in 2022
(a one-year delay relative to the previous outlook), - Revenue of DKK 70 million in 2022
(a reduction of DKK 30 million relative to the previous outlook for 2022), - Long-term EBITDA-margin above 30 % (unchanged)
- The revised revenue outlook for 2022 assumes that the company successfully delivers 2-3 large customer projects in addition to the budgeted baseline sales activities for the year.
Financial development
- In Q2, LED iBond generated revenues of TDKK 1,134, an increase of 220 % compared to Q2 of 2020. For H1, revenues amounted to TDKK 4,295, an increase of TDKK 1,923 or 81 %
- EBIT for Q2 came to TDKK -6,942, a deterioration of 13.2 %, mainly caused by an increase in staff cost of TDKK 786 and an increase in depreciation of TDKK 351. For H1, EBIT amounts to TDKK 11,361, a loss increase of 6,5 %.
- The result before tax for Q2 came in at a loss of TDKK 7,321 against TDKK 9,910 in Q2 of 2020. This relative improvement is caused by a reduction in financial expenses relative to the previous year, which included the company’s one-off IPO-related expenses. This also reflected in the result before tax for H1, a loss of TDKK 12,252 against a loss of TDKK 14,683 in H1 of the year before.
- In Q2, the company completed a rights issue to raise additional capital for new commercial opportunities. 62 % oversubscribed, the capital increase was completed in April 2021.
- The total cash flow for H1 of 2021 shows an inflow of TDKK 33,163 against a total inflow of TDKK 14,027 in the year-earlier H1, mainly due to the capital increase in April 2021.
- On 30 June 2021, the company’s equity stood at TDKK 80,351 against TDKK 44,193 at 31 December 2020, and net cash amounted to TDKK 43,023, compared to TDKK 9,861 on 31 December 2020.
Financial key figures for Q2 and H1 2021
| TDKK | Q2 2021 |
Q2 2020 |
Change | H1 2021 |
H1 2020 |
Change |
| Profit & Loss | ||||||
| Revenue of goods sold | 1,134 | 354 | 780 | 4,295 | 2,372 | 1,923 |
| Grants & Compensation | 0 | 0 | 0 | 1,001 | 0 | 1,001 |
| EBITDA | -3,912 | -3,453 | -459 | -5,271 | -5,316 | 45 |
| EBIT | -6,942 | -6,132 | -810 | -11,361 | -10,665 | -696 |
| Net Financial expenses | -379 | -3,778 | 3,399 | -891 | -4,018 | 3,127 |
| Profit/loss before tax | -7,321 | -9,910 | 2,589 | -12,252 | -14,683 | 2,431 |
| Profit/loss | -5,708 | -7,730 | 2,012 | -9,554 | -11,453 | 1,899 |
| Balance Sheet | ||||||
| Total assets | 101,629 | 70,792 | 30,837 | |||
| Total equity | 80,351 | 50,364 | 29,987 | |||
| Net interest-bearing debt. | 11,605 | 13,061 | -1,456 | |||
| Cash flow statement | ||||||
| Cash flow from operating activity | -4,691 | -904 | -3,787 | -4,842 | -5,923 | 1,081 |
| Cash flow from investing activity | -3,549 | -2,661 | -888 | -8,416 | -4,670 | -3,746 |
| Cash flow from financing activity | 47,327 | 17,610 | 29,717 | 46,422 | 24,010 | 22,412 |
| Change in cash and cash equivalents | 39,087 | 14,045 | 25,042 | 33,163 | 14,027 | 19,136 |
The full interim financial report for the second quarter of 2021 is available here:
https://ledibond.com/wp-content/uploads/2021/08/Interim-report-Q2-2021.pdf
Further Information
Pia Stangerup, CEO
Mobile: +45 5117 6701
Email: pst@ledibond.com
Company contact
LED iBond International A/S
Agern Allé 5A
2970 Hørsholm
Denmark
CVR 36041609
+45 7070 7855
info@ledibond.com
www.ledibond.com
Certified advisor
Västra Hamnen Corporate Finance
Jungmansgatan 12
211 19 Malmö
Sweden
Telephone: +46 40 200 250
Email: ca@vhcorp.se
About LED iBond International A/S
Founded in 2014, LED iBond International offers innovative solutions for integrating light and data, based on the company’s deep knowledge of modern LED technology and many years of development. The patented technology includes the lightest and thinnest LED basis available, offering a unique value proposition combining total design flexibility, full IoT integration and low total costs of ownership. LED iBond’s technology has been deployed in many projects, ranging from intelligent shelf lighting to large scale indoor illumination projects such as the installation of 3.2 kilometres of Tracy®, the company’s innovative flagship product, at DTU, the Technical University of Denmark.
Due to the data transfer capabilities, superior form factor and cooling properties of the technology platform, LED iBond is focusing on three key markets: smart housing, UV disinfection and vertical farming, all projected to show significant growth in the years to come.
LED iBond International A/S is admitted to trading on Nasdaq First North Growth Market Denmark (ticker: LEDIBOND).