Gelion (GELN) H2 2024 earnings summary

Executive summary

• Achieved all major milestones ahead of schedule, including the acquisition and integration of OXLiD, and secured key partnerships and grants to advance commercial objectives.

• Shifted strategic focus to next-generation sulfur battery technologies, with zinc and recycling businesses moved to incubation for potential spin-out and future diversification.

• Delivered significant cost efficiencies, reducing operating expenses and running a leaner, more focused team.

• Integration Solutions business secured its first major £1 million order, with revenue expected in FY25.

• Advanced Commercial Prototyping Centre (ACPC) approved with AU government grant, enabling inhouse manufacturing and customer validation.

Financial highlights

• Adjusted EBITDA loss decreased by £1.1 million year-over-year (18.8% improvement), and was 13% better than analyst forecasts.

• Cash position at end of June 2024 was £3.8 million, 74% higher than analyst forecasts.

• £1.6 million R&D tax incentive received from the Australian government.

• Cost savings of over £1.5 million on a like-for-like basis, with reductions in R&D, employee, and business expenses.

• R&D expenditure reduced from £4.1 million in FY23 to £3.5 million in FY24.

Outlook and guidance

• Focus on progressing lithium-sulfur technology to minimum viable performance and product stages for licensing and scale-up.

• Plan to double sales in the Integration Solutions business and continue prudent cost management.

• Ongoing efforts to secure strategic partners and match funding for the ACPC grant.

• Expectation of further capital raises, with current cash runway extending just beyond the next half-year.

• Incubation of zinc and recycling technologies to diversify future revenue streams.