VivoPower returns to profit in H1 FY 2019/20

Solar power plant. Source: Gamesa Electric

February 26 (Renewables Now) - VivoPower International PLC (NASDAQ:VVPR) is back in the black for the first time since the quarter to March 31, 2017 after it benefited from strong revenue growth in the six months through December 2019.

The solar and critical power company on Tuesday reported revenue of USD 31.4 million (EUR 28.8m) for the first half of its fiscal year, representing a surge of 63% from the same period in 2018. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) stood at USD 5.5 million while total profit after tax amounted to USD 1.1 million. The company booked earnings per share of USD 0.12.

Aevitas, the company's critical power services subsidiary in Australia, was the main driver behind the improved performance, with a gross profit of USD 5.6 million, 80% higher on the year. It was helped by a 66% increase in revenue and stronger margins in the segment.

In addition, VivoPower saw a 42% decline in corporate office and solar development overhead costs.

"Our objective now is to build on the base that we have created and continue to scale up the business in a sustainable and profitable manner. In addition, we remain very focused on driving value creation for our US solar portfolio with a view to maximizing proceeds from monetization," chairman Kevin Chin commented.

(USD 1.0 = EUR 0.92)

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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