Strong growth in 2023-24 annual revenue, up 32% to €45.5m

• Energy storage

Energy storage supports the connection of new decentralised energy sources to interconnected grids and isolated sites (micro-grids). The battery storage systems developed and integrated by Entech provide customers with all the offset services, including filtering, storage and rationalisation, for making optimal use of their energy mix.

This business activity increased 40% to €22.6m in FY 2023-24. The year was marked by a ramp-up of increasingly ambitious contracts, such as the framework agreement signed in May 2023 for Gaz Electricité de Grenoble. With a storage capacity of more than 50 MWh, this agreement covers the supply of battery-based storage systems for six sites, each one offering frequency regulation services to French and European power grids and enabling the replacement of existing frequency regulation assets such as thermal power plants. The roll-out of five projects was initiated in FY 2023-24, with commissioning scheduled for summer 2024.

• Photovoltaic energy production

The photovoltaic energy production business grew 36% to €22.6m, driven mainly by the construction and operation of ground-based power plants on behalf of top-tier electricity producers.

The construction of solar roofs is growing strongly in the agricultural sector and, increasingly, for shopping centres and manufacturers. These players are all seeking to reduce their carbon footprint and energy bills through self-consumption (with or without storage) and, in some cases, the resale of part of the energy produced.

• Hydrogen storage, a technology of the future and a future growth driver

The hydrogen business is one of the technologies of the future developed by Entech’s R&D teams. The company is thus seeking to contribute to the transformation of power grids by integrating new energy production and storage methods.

In FY 2023-24, Entech delivered two containerized power conversion and distribution solutions to Genvia as per the agreement signed in May 2023. These solutions now equip the first electrolysers to be commissioned by Genvia as part of a pilot project targeting the large-scale manufacture of high-temperature electrolysers for the production of decarbonised hydrogen on a global scale.

Also in FY 2023-24, Entech announced the launch of the C3POeproject. The aim is to build a range of plug & play products to provide isolated islands and coastal sites with a sustainable supply of electricity and water based on hydrogen technologies, including micro-grids incorporating desalination, electrolysis and battery units.

 Significant post-closing event: creation of a joint venture with Eiffage Energie Systèmes for HV projects

On 16 May 2024, Entech and Eiffage Energie Systèmes announced the creation of a joint venture dedicated to large energy storage projects connected to the high-voltage grid. By combining the strength and experience of a major international group with the agility and flexibility of an innovative SME, the alliance between Eiffage Energie Systèmes and Entech unlocks numerous synergies.

The energy storage market is mature, and subsidies are not required for its development. Economies of scale, technological advances and increasing demand are making energy storage increasingly attractive.

In addition, the opening of the call for tenders for secondary reserve capacities in the HV network in France, scheduled for this year, will step up the development of future projects. While the installed HV storage capacity connected to the French public power transmission system (RPT) totals just 265 MW (source: RTE), 5.8 GW are currently being connected, with an average installed capacity per project of 100 MW. Of the total 5.8 GW, Entech and Eiffage Energie Systèmes estimate their medium-term potential target market at around €1bn.

The joint venture will make a minimal contribution to the Company’s revenue in FY 2024-25, with business expected to fully ramp up in FY 2025-26.

Entech will clarify the impact on its medium-term roadmap as soon as the joint venture delivers its initial commercial successes.

Outlook: EBIDTA at break-even in H2, medium-term targets confirmed

Given the strong operating performance achieved in the second half of FY 2023-24, Entech expects EBITDA to be close to break-even in the second half, up sharply compared with the first half (-€1.3m).

For FY 2024-25, Entech enjoys robust visibility across all its business activities. The order book at 31.03.2024 totalled €41m.

In the light of these factors, the Company is confirming its guidance for 2025-26 (financial year ended 31 March 2026) with revenue of around €130m and an EBITDA margin of around 20%.

Next event: 25 June 2024 after market close: annual results for FY 2023-24 ended 31.03.2024