Image: RedT.
Concerns over the future of energy storage firm redT remain after it admitted that, without additional investment, the vanadium flow machine manufacturer could be forced to cease trading by the end of November.
In March this year the company announced a strategic review of the business, coupled with a new fundraising drive in order to secure capital needed to continue trading.
Today’s updated included confirmation that its current cash reserves stand at around £3.4 million, enough to continue to meet the firm’s obligations until the end of November 2019.
But Neil O’Brien, who returned to the redT board to lead the strategic review, stressed that if additional capital could not be raised, the company would be left with no other option than to cease trading altogether.
There are, however, clearer skies on the horizon. RedT expects to be cash generative by H2 2021, requiring around £10 million of new capital to reach that stage. O’Brien said discussions continue with a number of would-be investors, some of which are carrying out due diligence, and the board is optimistic that a deal will be cut in due course.
RedT has also announced a major C&I solar-plus-storage partnership with Statkraft, bringing to market the UK’s first fully-funded co-located offering for the C&I market.
The company will be hoping the Statkraft deal, and the successful adoption of its new ‘generation three’ technology, will be enough to bolster its revenues further.
Revenues for the year ended 31 December 2018 were revealed today to have risen some 87% to £4.7 million, but this was not enough to offset a widening operating loss, which stood at some £12.2 million for the year.
This had resulted in a continued drain on its cash reserves, which were effectively halved from £6.6 million in 2017 to £3.3 million last year.
Speaking of the results, O’Brien paid testament to the company’s staff for persevering during “challenging circumstances” in 2018.
“Right now, our immediate focus continues to be the satisfactory conclusion of the Strategic Review process, which is essential to provide the funding and support the company requires in the near-term to succeed in this space,” he said.