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With the business potentially at an important milestone, we thought we'd take a closer look at Invinity Energy Systems plc's (LON:IES) future prospects. Invinity Energy Systems plc manufactures and sells vanadium flow batteries (VFB) for energy storage requirements of business, industry, and electrical networks. The UK£67m market-cap company’s loss lessened since it announced a UK£23m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£21m, as it approaches breakeven. The most pressing concern for investors is Invinity Energy Systems' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Invinity Energy Systems
Invinity Energy Systems is bordering on breakeven, according to the 3 British Electrical analysts. They expect the company to post a final loss in 2026, before turning a profit of UK£13m in 2027. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 61% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Invinity Energy Systems' upcoming projects, though, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Invinity Energy Systems currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of Invinity Energy Systems to cover in one brief article, but the key fundamentals for the company can all be found in one place – Invinity Energy Systems' company page on Simply Wall St. We've also put together a list of important factors you should look at:
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Historical Track Record: What has Invinity Energy Systems' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Invinity Energy Systems' board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.