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Redflow Limited
ABN 49 130 227 271
Appendix 4D and Interim Financial Report
For the half-year ended 31 December 2021
Contents
only | Appendix 4D |
Directors' report | |
Auditor's independence declaration | |
Interim financial report | |
Consolidated statement of comprehensive income | |
use | Consolidated balance sheet |
Consolidated statement of changes in equity | |
Consolidated statement of cash flows | |
Notes to the consolidated financial statements | |
For personal | Directors' declaration |
Independent auditor's review report to the members | |
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only | Reporting Period : | Half-year Ended 31 December 2021 | |||||
Previous Corresponding Period : | Half-year Ended 31 December 2020 | ||||||
Results for announcement to the market | |||||||
Results | % | $ | |||||
Revenue from ordinary activities | up | 172.3% | to | 1,174,242 | |||
Loss from ordinary activities after | |||||||
use | (5,193,639) | ||||||
tax attributable to members | up | 76.1% | to | ||||
Net loss for the half-year attributable | (5,195,596) | ||||||
to members | up | 74.1% | to | ||||
Dividends | - | - | |||||
The Directors do not recommend the payment of a dividend for the reporting period. | |||||||
personalFor | |||||||
Brief explanation of the figures reported above | |||||||
Please refer to the review of operations on page 4. | |||||||
Other information
Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors' Report and the consolidated financial report for the half-year ended 31 December 2021. The information should be read in conjunction with Redflow Limited's 2020 Annual Report and the attached Interim Financial Report. This report is based on the consolidated financial statements for the half-year ended 31 December 2021 which have been reviewed by PricewaterhouseCoopers.
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Directors' report
For the half-year ended 31 December 2021
Your Directors submit their report on the consolidated entity (referred to hereafter as the Group) consisting of Redflow Limited (the Company) and the entities it controlled for the half-year ended 31 December 2021.
Directors
The following persons were Directors of Redflow Limited during the half-year and up to the date of this report:
only | Directors | Position | Date of | ||
Appointment | |||||
Brett Johnson | Chairman (Non-Executive) | 27 | September 2017 | ||
Timothy Harris | Managing Director & Chief Executive | 2 | July 2018 | ||
Officer (CEO) | |||||
David Knox | Director (Non-executive) | 2 | March 2017 | ||
John Lindsay | Director (Non-executive) | 11 | September 2018 | ||
David Brant | Director (Non-executive) | 19 | October 2018 |
usePrinciple Activities
The principle activities of the Group consist of the development, manufacture and sale of its zinc-bromine flowing electrolyte battery module (ZBM).
Review of operations
Redflow has continued to make significant progress with its strategy in the first half of FY2022.
A number of achievements and milestones were achieved over the half-year period. These include:
personal | • Revenue of $1,174k, a 172.3% increase from previous calendar period (pcp); |
• Completion of the deployment for Optus across multiple sites of Redflow batteries for the Australian | |
Federal Government's bushfire resiliency programme with Redflow's new hibernation mode; | |
• Launch of Redflow Energy Pod system for targeting larger systems; | |
• Significantly progressed research and development initiatives including pH management, electrolyte | |
composition and validation of alternative suppliers; | |
• Achieved the milestone of delivering over 2 GWh of energy through our batteries; | |
• Finalisation of the Entitlement Offer in August 2021 raising a total of $10.9m; | |
• Announced an agreement with a Singapore based venture capital fund to assist Redflow in pursuing and | |
maximising the US market opportunity; | |
• Completed installation of the 2MWh installation for Anaergia in California which is Redflow's largest single | |
deployment, with the formal launch occurring in January 2022; | |
• Confirmed outstanding orders for delivery of 105 batteries as at 31st Dec 2021; | |
• Redflow joining the Long Duration Energy Storage (LDES) Council as a foundation technology member | |
which was launched at the COP26 in Glasgow in November; | |
• Renewed the Thailand facility lease for a further 3 years; and | |
• Continued progress on Gen3 despite a number of COVID related headwinds. | |
Following on from the Anaergia order and installation, the US continues to be a key focus market for Redflow. | |
ForRedflow has continued to make significant progress, including: |
- Recruitment of Redflow's US team, located in California;
- Commencement of the UL certification for the Redflow Gen3 battery which is a key element of market acceptance for key industries;
- Facilitated an independent testing program with the non-profit arm of Underwriter Laboratories, which is a recognised leader in independent testing laboratory in the United States;
- Independent validation of Redflow's low fire risk credentials with DNV, a leading independent consultancy focused on Assurance and Risk Management, plus independent performance testing of Gen3 batteries at DNV testing facilities in New York;
- Exhibited at a leading US renewable energy trade event in California with significant interest generated;
- Progress against a number of sales opportunities which have material sales potential; and
- Ongoing progress to diversify our supplier base for critical materials from US companies.
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Directors' report
For the half-year ended 31 December 2021
Over the period and into early 2022, Redflow has continued to progress its Gen3 battery developments despite ongoing COVID-19 challenges. The Gen3 battery will result in substantial cost benefits, while delivering the same level of performance to customers. It will also allow Redflow to implement automation in the manufacturing
onlyprocess. COVID-19 has continued to disrupt Redflow's Thailand production facility including travel restrictions and delays associated with material supply and global logistical challenges. Redflow continues to target introducing Gen3 into production in Q4 of FY22.
The loss of the Group after income tax on a consolidated basis for the half-year ended 31 December 2021 was $5,193,639 (2020: $2,949,454).
The Group's independent auditor's report for the half-year ended 31 December 2021, contains a material uncertainty section drawing members attention to the contents of Note 2(a) of the accompanying financial statements which deals with the Group's going concern assumptions and the basis upon which those financial
usestatements have been prepared. A copy of the independent auditor's report is included with the accompanying financial statements for the half-year ended 31 December 2021.
Other developments
As we continue to execute on Redflow's long term growth strategy, we are developing our sales pipeline, maintaining production and executing on our projects to reduce the cost of our batteries. This will see the business continue to be cash-flow negative for some time. The business will need additional working capital this
year. As noted in the 2021 AGM Chairman's address, Management and the Board continue to evaluate potential personalsources of working capital to support Redflow's long term growth strategy.
Auditor's independence declaration
A copy of the Auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 6.
This report is made in accordance with a resolution of the Directors.
Brett Johnson
Chairman
ForBrisbane
28 February 2022
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RedFlow Limited published this content on 27 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 February 2022 22:41:01 UTC.