The leading lead-acid batteries producer in Bulgaria Monbat explores new battery technology, the Company announced in a statement to the stock exchange. The move is a response to the alternative energy sources and changing energy storage trends, the statement continues.
Monbat New Power launch
Accordingly, Monbat incorporated new 51% subsidiary in Bulgaria – Monbat New Power AD, together with August Fortune ltd, 49% stake. The latter is controlled by Graham Norton-Standen and Martin Koster, both experienced in the alternative energy storage solutions, including lithium-ion technology. Monbat New Power AD will be strictly R&D focused and concentrate “its efforts on producing and commercializing “all-in-one energy storage” solutions including power management devices”, the Company added.
Alternative technology expected to double net earnings
At the Annual Investor Finance Forum Investor Day, at a special company presentation Monbat CFO and Member of the Board Peter Bozadjiev said that Monbat plans to double its net earnings over the next 5 years both organically and via new technology applications and modifications. Bozadjiev also said Monbat may find a niche in the lithium-ion technology variations as well as in new energy management storage solutions. “We are looking into industrial partnerships and niche technology applications”, Bozadjiev added.
No immediate details as to the concrete solutions, industrial partners and investment needs available.
2016 earnings will be up 28% y/y
Bozadjiev gave a FY2016 EBITDA guidance of EUR 24.6m. The latter is 4% above ELANA Trading analysts’ expectations and 28% y/y above FY2015 result.
9M earnings were best in 7 years
Monbat booked best 9M earnings in seven years – 9M16 EBITDA up 8.7% y/y to BGN 33m and earnings before taxes up 7.6% to BGN 21.6m.
9M16 sales reverse the negative trend and were up 1.4% y/y to BGN 179.4m. On a quarterly basis, sales were up 37.8% y/y to BGN 66.9m while EBITDA is up 35.2% to BGN 12m.