LONDON (ShareCast) - (Sharecast News) - Utility-grade energy storage developer Invinity Energy Systems updated the market on its results for 2022 on Friday, reporting that it recently conducted a comprehensive review of the cost associated with fulfilling previously-signed contracts as part of its audit process.
The AIM-traded firm said the review was expected to lead to a significant reduction in its provision for contract losses previously recorded.

As a result, Invinity indicated a marked improvement in its reported gross margin loss and loss before tax, surpassing earlier expectations.

Additionally, pending final approval from auditors, the company said it expected to report revenue of around £3.6m.

That figure included grant income against direct costs, and was in line with the delivery of about 4.3 megawatt-hours of product through the year.

"The significant reduction in the provision for contract losses highlights the reducing cost of delivering the company's VS3 product and the transition towards achieving positive gross margins as evidenced by all but one of the sales contracts closed since the fourth quarter of 2022 expecting a positive gross margin," the board said in its statement.

"As previously disclosed, this trend is an important step on the path to industry standard gross margins which are expected to be delivered with the launch of the company's next generation product, code-named 'Mistral'.

"The company can also confirm a cash balance of £15.4m as at 31 May."

At 1034 BST, shares in Invinity Energy Systems were down 6.82% at 41p.

Reporting by Josh White for Sharecast.com.

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