Invinity Energy Sys - 2026 Interims Results
21 September 2026
Invinity Energy Systems plc
("Invinity" or the "Company")
2026 Interim Results
Invinity Energy Systems plc (AIM: IES), a global leader in vanadium flow battery technology, announces its unaudited consolidated results for the six months ended 30 June 2026 (the "Period") and an update on trading in the year to date.
The Company will hold a virtual meeting for analysts at 9.30 a.m. today. Analysts wishing to attend are kindly asked to email ir@invinity.com.
Invinity's management team will host a virtual results presentation and interactive Q&A via the Investor Meet Company platform for all shareholders and investors at 4.30 p.m. UK Time on Tuesday 22 September - please register for free here.
H1 2026 SUMMARY
· Customer Orders increased nearly threefold to 34.2 MWh during the period (H1 2025: 11.7 MWh);
· Contracted by FlexBase Group to design a 1.5 GWh (rising to 2.1 GWh in subsequent phase) vanadium flow battery system, expected to be the world's largest, for its Laufenburg Technology Centre project in Switzerland;
· Completed delivery of a 20.7 MWh vanadium flow battery system to the Copwood VFB Energy Hub in East Sussex, UK - Europe's largest to date and the first UK project of its kind at this scale; Grid connection expected to be completed shortly allowing for full commissioning and first revenue generation.
· Frontier Power's Legacy project was selected to progress under Window 1 of the UK LDES Cap and Floor Scheme, which is currently expected to incorporate up to 260 MWh of Invinity VFBs;
· Revenue and Project Grant Income increased to £1.7m (H1 2025: £0.9m);
· Gross Loss reduced by 62% to £0.7m (H1 2025: £1.9m), reflecting improved product margins resulting from the cost down programme, reduced warranty costs and increased manufacturing activities supporting higher absorption of factory overhead;
· Loss for the Period increased by 14% to £12.1m (H1 2025: £10.6m) reflecting increased investment in R&D to deliver the Company's cost-down programme;
· Net Cash of £10.5m. Increase in receivables to £2.5m (H1 2025: £0.5m) and inventory & prepaid inventory to £14.2m (H1 2025: £14.1m) reflects work completed in H1 2026 for deliveries and cash conversion over the next 6 months; and
· Volker Beckers CBE appointed as Non-Executive Director, strengthening the Company's Board with over 30 years of energy industry experience, including over 10 years as CFO and subsequently CEO of RWE Npower plc.
POST-PERIOD HIGHLIGHTS
· Secured a 43 MWh order from Dairyland Power Cooperative, the Company's largest order to date, bringing 2026 secured customer orders to 77.2 MWh. Project to be delivered from Invinity's proposed U.S. manufacturing facility which remains on track to be established by year end;
· Further achievements under the Endurium cost reduction programme, with the Company remaining on track to achieve a minimum 66% cost reduction for Endurium product deliveries (2027) vs. previous generation;
· 11 GWh of energy now dispatched by Invinity batteries in service to customers, further strengthening the Company's strong track record of operation and delivery - an increase from the 10 GWh recently announced in August;
· Engineering phase of the FlexBase project continues to progress strongly against expected milestones:
o Equans Switzerland appointed as engineering, procurement and construction partner for the engineering phase of the project;
o UK Trade Commissioner to Europe visited site in September and commended the project as "a great example of British innovation and the ability of UK companies to compete and succeed internationally".
COMMERCIAL OUTLOOK
The Company confirms that trading remains in line with management expectations for the full year, with revenue recognition expected to be strongly weighted towards H2 2026, subject to anticipated project delivery timings.
Invinity's total pipeline of commercial interest currently exceeds 12.5 GWh and is concentrated in the rapidly growing renewable energy and datacentre sectors across North America and Europe.
The Company's committed orderbook currently exceeds 77 MWh for delivery across FY 2026-2028. This figure provides firm coverage over the substantial majority of expected FY 2026 and more than half of FY 2027 revenue expectations.
Further orders, primarily for delivery across FY 2027 and FY 2028 are expected to convert from the Company's existing 0.8 GWh of Frameworks, comprising signed Framework Agreements, Master Supply Agreements and other customer arrangements which are progressing towards firm orders. These agreements provide substantial support for expected FY 2027 revenues and establish a strong foundation for FY 2028, further increasing the visibility of the Company's medium-term revenue outlook.
Beyond this, Invinity has developed an 11.8 GWh Development Pipeline representing projects under commercial negotiation where the customer is engaging with Invinity in a procurement process and/or submitted Invinity's products to a public procurement scheme.
The table below summarises the commercial revenue outlook for 2026-2028 based on the current pipeline:
Commercial Revenue & Project Grant Income
2026
£m
2027
£m
2028
£m
Order Book
11
25
5
Frameworks
1
8
157
Development Pipeline
1
16
71
Where:
· Order Book reflects signed unconditional contracts expected to generate revenue in the relevant year that have either been delivered (and revenue recognised) or are in the fulfilment phase. Risks related to supply chain and the timing of revenue recognition remain.
· Frameworks include projects where the customer has signed an MoU, Master Services Agreement or contract subject to Notice-to-Proceed. Invinity has lower confidence in assessing the timing of delivery and revenue for these projects as risks related to final documentation and financing remain.
· Development Pipeline includes projects where the customer has engaged Invinity in a procurement process, submitted Invinity's products to a public procurement scheme or applied for relevant permits. Figures presented are risk-weighted taking into account uncertainty of conversion in the relevant time period. For the avoidance of doubt this is not an exhaustive list of all the leads with potential customers. Revenue is expected to be recognised in the relevant year, however commercial and site-specific development risks remain.
NON-EXECUTIVE CHAIRMAN RETIREMENT AND SUCCESSION PROCESS
As part of the Board's ongoing succession planning process, Neil O'Brien has informed the Board of his intention to retire as Chairman and step down from the Board following ten years of service. The Board has commenced a formal process to identify and appoint a successor and Neil will remain in his role until an orderly transition has been completed. Further announcements will be made in due course.
Jonathan Marren, Chief Executive Officer at Invinity said:
"The rapid growth of AI, electrification and renewables is driving demand for exactly the kind of flexible, high-throughput energy storage Invinity provides, and these results mark a clear step forward in our transition from technology leader to commercially scaling business.
"Orders have grown nearly threefold and demand has accelerated further in the year to date. Our fleet has now dispatched 11 GWh of energy in service to our customers, evidencing a strong and growing track record and at the same time, our cost reduction programme is delivering ahead of expectations, materially strengthening our competitive positioning in the market. The Company is entering a new phase defined by commercial scale-up and execution and I'm excited about the opportunity ahead of us."
Stay up to date with news from Invinity. Join the distribution list for the Company's monthly investor newsletter here.
Enquiries:
Invinity Energy Systems plc
+44 (0)20 4551 0361
Jonathan Marren, Chief Executive Officer
Joe Worthington, Senior Director, Corporate Affairs
Canaccord Genuity (Nominated Adviser and Joint Broker)
+44 (0)20 7523 8000
Henry Fitzgerald-O'Connor / Harry Pardoe / Charlie Hammond
Panmure Liberum (Joint Broker)
+44 (0)20 3100 2000
Scott Mathieson / Amrit Mahbubani / Inaya Rafique
VSA Capital (Joint Broker)
+44 (0)20 3005 5000
Andrew Monk / Andrew Raca
Notes to Editors
Invinity Energy Systems plc (AIM: IES) is a world-leading manufacturer of vanadium flow batteries for energy storage. Built in our factories in the UK and Canada, the Company's proven, commercialised, longer duration energy storage technology has been deployed at scale and dispatched gigawatt-hours of electricity for customers across the world.
Invinity's safe, scalable and durable battery technology is a trusted and safer alternative to lithium-ion batteries. Endurium VFBs are engineered for heavy-duty, high throughput applications, they don't wear out, cannot catch fire and are designed to be operated for 30 years or more. Our products address the challenges of our global energy system, unlocking the power of renewable generation by delivering energy storage without limits.
To find out more, visit invinity.com, sign up to our monthly Investor Newsletter here or contact Investor Relations on +44 (0)20 4551 0361 or ir@invinity.com.
2026 Interim Report
H1 2026 and the year to date have been characterised by a significant step forward in Invinity's transition from a technology leader to a commercially scaling energy storage business at a time when the rapid growth of AI, electrification and renewable energy is increasing demand for flexible, high-throughput energy storage solutions. The Company is growing rapidly from a solid foundation, built on three core elements:
1. A proven and highly differentiated technology platform. Invinity's vanadium flow battery technology provides operational flexibility that customers increasingly value as energy systems continue to evolve in what is being termed "The Age of Electricity".
2. A large and growing base of operating data, validated by customers and third-parties in real-world use. 11 GWh of energy has now been dispatched by our global battery fleet, demonstrating our growing operational track record.
3. Rapidly improving commercial competitiveness through product cost reduction. The Company successfully reduced product costs by 60% over the VS3 product lifecycle prior to the launch of Endurium in 2024 and Invinity remains on track to achieve a further 66% reduction in Endurium product cost for deliveries in Q1 2027. The progress achieved to date validates a clear pathway towards further reductions through 2030 as manufacturing volumes increase, supply chains mature and additional technology improvements are incorporated into future generations of the Endurium platform.
Evidence of improving commercial competitiveness was most notable during the Period, which saw a significant acceleration in commercial activity. Customer orders increased nearly threefold year-on-year to 34.2 MWh and have subsequently increased to 77.2 MWh following the 43 MWh order received from Dairyland Power Cooperative in August, the largest individual sale secured by Invinity to date.
In addition to the above, in May Invinity was selected by FlexBase to design what is expected to be the world's largest vanadium flow battery system for the Laufenburg Technology Centre in Switzerland, which plans to feature an AI data centre and technology campus integrated with a 1.5 GWh Invinity Vanadium Flow Battery (expected to expand to 2.1 GWh during a subsequent phase of the project's development). Furthermore, in June, Frontier Power's Legacy project was selected to progress under Window 1 of the UK LDES Cap and Floor Scheme, which is currently expected to incorporate up to 260 MWh of Invinity's VFB technology and which would represent the Company's largest UK project to date. These milestones represent a commercial inflection point for Invinity's business demonstrated by the substantial increase in both the volume and scale of opportunities, speaking to ever-growing customer confidence in the Company's technology, team and ability to deliver.
Importantly, this commercial momentum is increasingly being driven by improvements in product competitiveness resulting from the Company's ongoing cost reduction programme. Reducing product cost has been one of management's highest priorities over the past two years and the programme is now delivering tangible commercial and financial benefits ahead of management's original expectations. This strategy of aggressively reducing product cost while maintaining the highest standards of technical performance has significantly improved the competitiveness of our commercial proposals and is now contributing directly to stronger financial performance. To this end, Gross Loss reduced by more than 60% during the Period, reflecting materially lower product costs, reduced warranty expenses and improved product margins. The cost reduction programme remains a key corporate workstream and is on track to achieve a minimum 66% cost reduction for product delivered in 2027 vs. previous generations.
Invinity's growing operational track record is another factor underpinning commercial success. In May, the Company completed delivery of the 20.7 MWh Copwood VFB Energy Hub in East Sussex, a landmark project expected to become Europe's largest vanadium flow battery once operational. Furthermore, in August, Invinity's installed fleet surpassed 10 GWh of energy dispatched in service to customers and subsequently passed the 11 GWh milestone in September. This growing body of operating data from projects across multiple geographies and applications, reinforces one of Invinity's key competitive advantages: flexible, proven technology capable of delivering safe, durable, high-throughput energy storage over 30+ year operating lifetimes.
Recognition of these strengths is increasingly reflected in our engagement with government, industry and strategic stakeholders. In the year to date, the Company welcomed numerous visits from government representatives and industry leaders to its facilities and project sites across the world and the Company is increasingly becoming recognised as a technology leader not only in the UK and Canada, but also in the United States, where Invinity's planned domestic manufacturing capability will strengthen the Company's ability to serve a rapidly growing customer base in one of the world's most important energy storage markets.
Revenue and Project Grant Income recognised during the Period remained modest at £1.7 million and reflects the timing of project deliveries and the Company's long-established pattern of second-half weighted revenue recognition. Importantly, the quality of corporate revenue outlook continues to improve. Increasingly, future revenue is supported by contracted business rather than anticipated pipeline conversion, another important indicator of the Company's continued progression towards scale. Signed customer contracts now provide coverage over the substantial majority of expected FY 2026 revenue and more than half of FY 2027 revenue expectations, with further framework agreements and development-stage opportunities substantially covering the remainder of 2027 and extending into 2028 and beyond. The Company currently has over 77 MWh of contracted orders to deliver across FY 2026-2028 within a total commercial pipeline exceeding 12.5 GWh, which is concentrated in growth markets, particularly the rapidly expanding datacentre sector across North America and Europe.
These opportunities position Invinity strongly to continue gaining market share over the coming years and accordingly, the Company has continued to invest in the capabilities required to deliver at scale. Alongside progress towards U.S. manufacturing and the expansion of our supply chain and project delivery functions, the Company strengthened its Board through the appointment of Volker Beckers CBE as a Non-Executive Director. His extensive experience leading major international energy businesses adds further depth to Invinity's Board as the Company executes against an increasingly significant global growth opportunity.
The progress achieved in the Period and the year to date provides growing evidence that the Company's strategy is delivering. Product costs continue to fall, customer demand is increasing, revenue visibility is improving and Invinity's market position continues to strengthen. While significant opportunities and challenges remain ahead, the business is entering a new phase characterised by commercial scale-up and execution against a substantial global market opportunity.
Financial Performance
Six Months Ended
30 June 2026Six Months Ended (restated)
30 June 2025Year Ended
31 December 2025
£m
£m
£m
Revenue and Project Grant Income
1.7
0.9
17.3
Revenue
1.1
0.3
8.2
Project Grant Income1
0.6
0.6
9.1
Product margin2
0.0
(0.2)
0.1
Product margin (%)
1.8
(82.8)
1.5
Gross Loss
(0.7)
(1.9)
(2.9)
Adjusted EBITDA
(10.6)
(9.1)
(20.6)
Loss for the period
(12.1)
(10.6)
(24.1)
Property, Plant and Equipment plus Intangible Assets
37.1
27.0
34.3
Total inventory and Pre-paid Inventory
14.2
14.1
4.0
Net Cash
10.5
18.7
28.8
Net Assets
54.8
55.1
66.4
1 Project Grant Income includes government grant income recognised in relation to eligible project activities as Other items of operating income and expense or grant income against capital assets. For the 2026 reporting period, £0.6m of grant income was received and recorded as a credit to capital assets.
2 Product margin represents revenue less direct product costs, excluding overhead, warranty costs, and movements in non-cash provisions for sales contracts.
Six Months Ended
30 June 2026Six Months Ended (restated)
30 June 2025Year Ended
31 December 2025
£m
£m
£m
Loss from operations
(12.0)
(10.8)
(24.6)
Add back (deduct):
Depreciation and amortisation
0.8
0.7
1.2
Impairment of inventory and supplier deposits
-
(0.1)
0.5
Share based payment charges
0.4
0.2
0.8
Warranty and onerous contract provisions
0.2
0.9
1.5
Other Adjusting Items, net1
-
-
-
Adjusted EBITDA
(10.6)
(9.1)
(20.6)
1 Other Adjusting Items, net, includes gain and loss on disposal of non-current assets and legal settlements, and redomiciliation costs.
Revenue and Project Grant Income for the six months ended 30 June 2026 increased to £1.7 million (H1 2025 £0.9 million), driven by increased customer project delivery activity. Revenue includes the delivery of one battery system and the commissioning of four projects, in addition to integration hardware and shipping, while the Project Grant Income of £0.6 million concludes the completion of the Copwood VFB Energy Hub ("Copwood"). Revenue recognition for the full year remains significantly weighted towards the second half, reflecting the timing of contracted project milestones and anticipated deliveries.
Product margins reflecting direct costs improved to 1.8% reflecting completion of the first commercial Endurium delivery. Gross Loss reduced to £0.7 million (H1 2025 £1.9 million) reflecting increased manufacturing activity principally for Copwood with greater absorption of facility overhead, together with a substantial reduction in warranty costs to £0.2 million from £0.9 million in the comparative period. The reduction in warranty costs reflects improved component performance and lower component costs.
The increase in administrative expenses to £11.3 million (H1 2025 £9.6 million) included a £0.8 million increase in staff costs reflecting R&D investment to deliver product cost reduction, and a £0.6 million net reduction in R&D grant income year-on-year given the completion of the Gamesa Electric Joint Development Agreement.
During H1 2026, £0.6 million of DESNZ funding relating to Copwood was received and recognised against qualifying capital expenditure. In addition, £1.8 million of grant funding deferred at 31 December 2025 was applied against the carrying amount of the related project asset as the associated manufacturing and delivery milestones were completed. This treatment is consistent with the Group's accounting policy for grants related to capital assets.
Property, plant and equipment plus intangible assets increased to £37.1 million, from £34.3 million at 31 December 2025. The increase primarily reflects continued investment in the Copwood VFB Energy Hub, partially offset by the application of related DESNZ grant funding, together with the capitalisation of qualifying product development expenditure.
Total inventory and prepaid inventory increased to £14.2 million, from £4.0 million at 31 December 2025, as the Company manufactured product to support customer deliveries in H2 2026.
Net cash at 30 June 2026 was £10.5 million, compared with £28.8 million at 31 December 2025. The reduction principally reflects £12.9 million of net cash used in operating activities and £5.0 million of net investment in the Copwood project, product development and wider operational capability. Cash inflows are expected during H2 2026 from the conversion of project-related working capital and the receipt of advance and milestone payments under signed customer contracts. The Group continues to manage its operating costs and discretionary expenditure closely while prioritising the delivery of contracted customer projects and its strategic product development programme.
Net assets at 30 June 2026 were £54.8 million, compared with £66.4 million at 31 December 2025, principally reflecting the use of the Group's resources to fund operations and the resulting loss incurred during the Period.
Jonathan Marren
Chief Executive Officer
21 September 2026
Unaudited Financial Results for the Period Ended 30 June 2026
Unaudited Consolidated Statement of Profit and Loss
For the six months ended 30 June 2026
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025 (Restated)
Year Ended
31 December
2025Continuing operations
Note
£000
£000
£000
Revenue
4
1,097
256
8,182
Cost of sales
5
(1,824)
(2,186)
(11,047)
Gross loss
(727)
(1,930)
(2,865)
Operating costs
Administrative expenses
6
(11,311)
(9,645)
(21,895)
Other items of operating income and expense
8
35
762
142
Loss from operations
(12,003)
(10,813)
(24,618)
Finance income
246
397
843
Finance costs
(80)
(58)
(147)
(Loss)/gain on foreign currency transactions
(217)
(121)
(172)
Net finance (costs)/income
(51)
218
524
Loss before income tax
(12,054)
(10,595)
(24,094)
Income tax expense
-
-
-
Loss for the period/year
(12,054)
(10,595)
(24,094)
Loss per ordinary share in pence
Basic
9
(2.1)
(2.4)
(5.1)
Diluted
9
(2.1)
(2.4)
(5.1)
The above unaudited consolidated statement of profit and loss should be read in conjunction with the accompanying notes.
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2026
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025 (Restated)
Year Ended
31 December 2025Continuing operations
£000
£000
£000
Loss for the period
(12,054)
(10,595)
(24,094)
Other comprehensive income/(expense)
Exchange differences on the translation of foreign operations
(50)
(228)
(96)
Total comprehensive loss for the period
(12,104)
(10,823)
(24,190)
The above unaudited consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Unaudited Consolidated Statement of Financial Position
As at 30 June 2026
Six Months
Ended
30 June 2026
Six Months
Ended
30 June 2025 (Restated)
Year Ended
31 December 2025
Note
£000
£000
£000
Non-current assets
Goodwill and other intangible assets
13
24,865
23,948
23,948
Property, plant and equipment
14
12,189
3,075
10,360
Right-of-use assets
1,803
2,200
1,640
Contract assets
18
225
-
225
Other non-current assets
15
160
218
191
Total non-current assets
39,242
29,441
36,364
Current assets
Inventory
16
8,749
10,236
2,636
Other current assets
17
7,142
8,731
9,019
Contract assets
18
745
647
978
Trade receivables
19
2,507
496
3,260
Cash and cash equivalents
20
10,510
18,740
28,789
Total current assets
29,653
38,850
44,682
Total assets
68,895
68,291
81,046
Current liabilities
Trade and other payables
21
(7,370)
(4,747)
(7,539)
Derivative financial instruments
22
(67)
(203)
(135)
Contract liabilities
18
(2,115)
(1,592)
(649)
Lease liabilities
(582)
(663)
(643)
Provisions
18
(416)
(417)
(946)
Other current liabilities
23
(13)
(2,209)
(1,812)
Total current liabilities
(10,563)
(9,831)
(11,724)
Net current assets
19,090
29,019
32,958
Non-current liabilities
Lease liabilities
(1,536)
(1,788)
(1,352)
Provisions
18
(1,905)
(1,533)
(1,493)
Other non-current liabilities
(43)
(48)
(43)
Total non-current liabilities
(3,484)
(3,369)
(2,888)
Total liabilities
(14,047)
(13,200)
(14,612)
Net assets
54,848
55,091
66,434
Equity
Called up share capital
5,694
4,406
5,688
Share premium
22,954
-
22,872
Share based payment reserve
8,559
7,573
8,129
Merger reserve
264,188
264,188
264,188
Accumulated losses
(244,218)
(218,665)
(232,164)
Currency translation reserve
(2,368)
(2,450)
(2,318)
Other reserves
39
39
39
Total equity
54,848
55,091
66,434
See note 26 for details of the restatement.
The above unaudited consolidated statement of financial position should be read in conjunction with the accompanying notes.
Unaudited Consolidated Statement of Changes in Equity
As at 30 June 2026
Called up Share Capital
Share Premium
Share-based Payment Reserve
Accum-ulated Losses
Currency Translation Reserve
Merger Reserve
Other Reserves
Total
£000
£000
£000
£000
£000
£000
£000
£000
At 1 January 2026
5,688
22,872
8,129
(232,164)
(2,318)
264,188
39
66,434
Loss for the period
-
-
-
(12,054)
-
-
-
(12,054)
Other comprehensive gain/(loss)
Foreign currency translation differences
-
-
-
-
(50)
-
-
(50)
Total comprehensive loss for the period
-
-
-
(12,054)
(50)
-
-
(12,104)
Transactions with owners in their capacity as owners
Share-based payments
-
-
430
-
-
-
-
430
Exercise of share options
6
82
-
-
-
-
-
88
Total contributions by owners
6
82
430
-
-
-
-
518
At 30 June 2026
5,694
22,954
8,559
(244,218)
(2,368)
264,188
39
54,848
As at 30 June 2025 (Restated)
Called up Share Capital (restated)
Share Premium (restated)
Share-based Payment Reserve
Accum-ulated Losses
Currency Translation Reserve
Merger Reserve (Restated)
Other Reserves
Total
£000
£000
£000
£000
£000
£000
£000
£000
At 1 January 2025
53,473
215,121
7,328
(208,070)
(2,222)
-
39
65,669
Loss for the period
-
-
-
(10,595)
-
-
-
(10,595)
Other comprehensive gain/(loss)
Foreign currency translation differences
-
-
-
-
(228)
-
-
(228)
Total comprehensive loss for the period
-
-
-
(10,595)
(228)
-
-
(10,823)
Transactions with owners in their capacity as owners
Group reorganisation adjustment
(53,473)
(215,121)
-
-
-
268,594
-
-
Shares issued on redomiciliation
61,679
-
-
-
-
(61,679)
-
-
Reduction of share capital
(57,273)
-
-
-
-
57,273
-
-
Share-based payments
-
-
245
-
-
-
-
245
Total contributions by owners
(49,067)
(215,121)
245
-
-
264,188
-
245
At 30 June 2025
4,406
-
7,573
(218,665)
(2,450)
264,188
39
55,091
See note 26 for details of the restatement.
The above unaudited consolidated statements of changes in equity should be read in conjunction with the accompanying note.
Unaudited Consolidated Statement of Changes in Equity
For the year ended 31 December 2025
Called up Share Capital
Share Premium
Share-based Payment Reserve
Accumulated Losses
Currency Transla-tion Reserve
Merger Reserve
Other Reserves
Total
£000
£000
£000
£000
£000
£000
£000
£000
At 1 January 2025
53,473
215,121
7,328
(208,070)
(2,222)
-
39
65,669
Loss for the year
-
-
-
(24,094)
-
-
-
(24,094)
Other Comprehensive Income
Foreign currency translation differences
-
-
-
-
(96)
-
-
(96)
Total Comprehensive Loss for the Year
-
-
-
(24,094)
(96)
-
-
(24,190)
Transactions with Owners in their Capacity as Owners
Group reorganisation adjustment
(53,473)
(215,121)
-
-
-
268,594
-
-
Shares issued on redomiciliation
61,679
(61,679)
-
Reduction of share capital
(57,273)
-
57,273
-
Investment funding arrangement, net of transaction costs
1,282
22,872
-
-
-
-
-
24,154
Share-based payments
-
-
801
-
-
-
-
801
Total Contributions by Owners
(47,785)
(192,249)
801
-
-
264,188
-
24,955
At 31 December 2025
5,688
22,872
8,129
(232,164)
(2,318)
264,188
39
66,434
The above unaudited consolidated statements of changes in equity should be read in conjunction with the accompanying note.
Unaudited Consolidated Statement of Cash Flows
For the six months ended 30 June 2026
Six months ended
30 June 2026
Six months
ended
30 June 2025
Year ended
31 December 2025
Note
£000
£000
£000
Cash flows from operating activities
Cash used in operations
(13,260)
(12,634)
(17,682)
Interest received
356
324
475
Interest paid
-
-
(1)
Net cash outflow from operating activities
(12,904)
(12,310)
(17,208)
Cash flows from investing activities
Net acquisition of property, plant and equipment and grant income received against capital projects
(4,121)
(581)
(7,946)
Capitalised development costs
(918)
-
-
Prepayment of property, plant and equipment for battery project under construction
-
-
(1,558)
Net cash outflow from investing activities
(5,039)
(581)
(9,504)
Cash flows from financing activities
Payment of lease liabilities
(444)
(444)
(870)
Sublease deposit received
-
-
43
Sublease payments received
39
-
94
Proceeds from the issue of share capital
88
-
25,000
Payment of transaction costs for the issue of share capital
-
-
(846)
Net cash inflow/(outflow) from financing activities
(317)
(444)
23,421
Net (decrease)/increase in cash and cash equivalents
(18,260)
(13,335)
(3,291)
Cash and cash equivalents at the start of the period/year
20
28,789
32,352
32,352
Effects of exchange rate changes on cash and cash equivalents
(19)
(277)
(272)
Cash and cash equivalents at the end of the period/year
20
10,510
18,740
28,789
The above unaudited consolidated statement of cash flows should be read in conjunction with the accompanying note. Certain comparative information has been re-presented to ensure consistency with the presentation adopted in the current period.
Notes
(forming part of the unaudited consolidated historical financial information)
1 General Information
Invinity Energy Systems plc (the "Company") is a public company limited by shares incorporated and domiciled in the UK. The registered office address is Room 3.03, 24 Chiswell Street, London, EC1Y 4TY.
The Company is quoted on the AIM Market of the London Stock Exchange with the ticker symbol IES.L.
The principal activities of the Company and its subsidiaries (together the "Group") relate to the manufacture and sale of vanadium flow battery systems and associated installation, warranty and other services.
2 Accounting Policies
The accounting policies applied in this condensed consolidated financial information are consistent with those applied in preparing the financial statements for the year ended 31 December 2025.
Basis of Preparation
This unaudited condensed consolidated interim financial information for the six months ended 30 June 2026 (the 'interim financial information') has been prepared in accordance with IAS 34, 'Interim financial reporting' as adopted for use in the United Kingdom. The financial information should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2025 that were prepared in accordance with International Financial Reporting Standards as adopted for use in the United Kingdom.
The annual report and financial statements for the year ended 31 December 2025 are available on the Company's website (www.invinity.com).
This interim financial information has been prepared using the historical cost basis of accounting. The accounting policies applied across all the Group's subsidiaries when preparing the financial information are consistent with those adopted and disclosed in the annual financial statements for the year ended 31 December 2025. The accounting policies have been consistently applied across all Group entities for the purpose of producing this interim financial information.
The financial information included in this document does not constitute the Company's statutory accounts within the meaning of section 434 of the Companies Act 2006. The comparative figures for the financial year ended 31 December 2025 represent the Company's statutory accounts for that year, which were prepared under the Companies Act 2006, reported on by the Company's auditors, and delivered to the Registrar of Companies in England and Wales.
The Group's business activities, together with factors likely to affect its future development, performance and position, are set out in the operations and financial review sections of this report.
The financial position of the Group, its cash flows and liquidity position are described in the financial review section.
Going Concern
The Directors have made an assessment of going concern covering the period from the date of the financial statements to 30 June 2027 and in making this statement, have prepared a cash flow forecast covering this period.
The forecast indicates that the Group can remain cash positive during the going concern period, without the requirement for further fundraising. This forecast includes judgements and estimates regarding income from pipeline projects, expected costs of delivering the contracts, and is predicated on cost mitigation measures including the deferral of capital expenditure and reduction in opex.
In order to fund the business beyond the going concern period and for future expansion, the Directors anticipate that additional funding would be required. The Directors have considered the availability of potential funding sources and the Group's track record in accessing capital markets in forming this assessment.
Invinity has prepared a downside cash forecast for the purposes of the going concern evaluation, which excludes all pipeline contracts that are not yet signed. In this scenario, the forecast assumes a reduction or deferral of costs in order to preserve cash without additional funding. If required, the Directors consider that the Group has the ability to reduce or defer costs without adversely affecting the short-term delivery of contracted income in downside forecast. The outcome of this scenario is that the Company has sufficient cash through the going concern period.
On the basis of this assessment, the Directors are satisfied that the Group has sufficient resources to continue in operation for the going concern period. Accordingly, the financial statements have been prepared on a going concern basis.
3 Critical Accounting Judgements and Key Sources of Estimation Uncertainty
The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and of items of income and expense. Actual results may differ from these estimates.
In preparing this interim financial information, the significant judgements made by management in applying the Group's accounting policies were the same as those that applied to the consolidated financial statements for the year ended 31 December 2025. Similarly, the key sources of estimation uncertainty related to the financial information were the same as those encountered when applying the Group's accounting policies in relation to the preparation of the consolidated financial statements for the year ended 31 December 2025.
In preparing the condensed consolidated financial information, management is required to consider the principal risks and uncertainties facing the Group. In management's opinion the principal risks and uncertainties facing the Group are unchanged since the preparation of the consolidated financial statements for the year ended 31 December 2025. Those risks and uncertainties, together with management's response to them are described in the risk review section of the annual report and financial statements for the year ended 31 December 2025.
4 Revenue from Contracts with Customers and Income from Government Grants
Segment Information
The Group derives revenue from a single business segment, being the manufacture and sale of vanadium flow battery systems and related hardware together with the provision of services directly related to battery systems sold to customers.
The Group is organised internally to report on its financial and operational performance to its chief operating decision maker, which has been identified as the Executive Directors as a group.
All revenues were derived from continuing operations.
Revenue from Contracts with Customers
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025
Year Ended
31 December 2025
£000
£000
£000
Battery systems and associated control systems
131
-
6,369
Integration hardware
461
30
350
Logistics and other services
330
174
245
Integration and commissioning
115
17
174
Royalty revenue
-
-
963
Other services
60
35
81
Total revenue in the statement of profit and loss
1,097
256
8,182
Grant Income other than Revenue
The Group receives grant income to help fund certain projects that are eligible for support, typically in the form of innovation grants. The total grant income in the period was as follows:
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025
Year Ended
31 December 2025
£000
£000
£000
Grants for research and development
108
238
984
Grants for product deployment
-
1,758
6,724
Total government grants
108
1,996
7,708
5 Cost of Sales
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025
Year Ended
31 December 2025
£000
£000
£000
Movement in inventories of finished battery systems
1,018
404
7,033
Movement in provisions for warranty and warranty costs
236
857
1,214
Movement in provisions for sales contracts
-
(2)
328
Manufacturing overheads
570
927
2,472
Total cost of sales
1,824
2,186
11,047
6 Administrative Expenses
Six Months Ended
30 June 2026
Six Months Ended (restated)
30 June 2025
Year Ended
31 December 2025
£000
£000
£000
Staff costs
7,812
6,985
14,424
Research and development costs
670
692
1,783
Research and development recoveries, tax credits and grants
(289)
(928)
(1,415)
Professional fees
350
282
795
Sales and marketing costs
356
294
716
Facilities and office costs
147
195
417
Depreciation and amortisation
681
623
1,220
Other administrative costs
1,584
1,502
3,955
Total administrative expenses
11,311
9,645
21,895
7 Staff Costs
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025
Year Ended
31 December 2025
£000
£000
£000
Wages and salaries
6,363
6,063
12,052
Employer payroll taxes
740
602
1,057
Contributions to defined contribution plans
106
81
161
Other benefits
685
460
1,261
Share-based payments
430
245
801
Total staff costs
8,324
7,451
15,332
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025
Year Ended
31 December 2025
£000
£000
£000
Staff costs charged to cost of sales
512
466
908
Staff costs charged to cost of administrative expenses
7,812
6,985
14,424
Total staff costs
8,324
7,451
15,332
8 Other Items of Operating Income and Expense
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025 (restated)
Year Ended
31 December 2025
£000
£000
£000
(Income)/expenses
Project Grant Income
-
(582)
(623)
Gain on curtailment of right-of-use asset
-
(23)
(26)
Partial reversal of impairment of loan receivable
-
-
(55)
Sublease income
-
(27)
(27)
Impairment of inventory to net realisable value
-
181
222
Reversal of impairment of inventory to net realisable value
(35)
(425)
(361)
Impairment of supplier deposits
-
-
489
Obsolete inventory
-
114
191
Loss on disposal of property, plant and equipment
-
-
48
Total other operating (income)/expenses (net)
(35)
(762)
(142)
9 Loss per Share
The weighted average number of shares used to calculate basic and diluted loss per share as presented in the consolidated statement of comprehensive loss was as follows:
Six Months Ended
30 June 2026
Six Months Ended
30 June 2025
Year Ended
31 December 2025
In issue at 1 January
568,767,024
440,561,896
440,561,896
Shares issued in the period - weighted average
-
-
32,314,717
Weighted average shares in issue at the end of the period
568,767,024
440,561,896
472,876,613
Effect of employee share options and warrants not exercised
6,034,352
1,031,100
9,846,052
Weighted average number of diluted shares at the period end
574,801,376
441,592,996
482,722,665
Additional potential shares used in the calculation of diluted earnings per share primarily relate to potential shares outstanding at 30 June 2026 that may be issued in satisfaction of 'in-the-money' employee share options. Potentially dilutive shares related to 'in-the-money' outstanding warrants to subscribe for ordinary shares in the Company are also included in calculating diluted earnings per share.
Where additional potential shares have an anti-dilutive impact on the calculation of loss per share calculation, such potential shares are excluded from the weighted average number of shares used in the calculation.
Additional potential shares are anti-dilutive where their inclusion in the calculation of loss per share results in a lower loss per share.
10 Cash Flows from Operating Activities
Six Months Ended
30 June 2026
Six Months Ended
(restated)
30 June 2025
Year Ended 31 December 2025
£000
£000
£000
Loss after income tax
(12,054)
(10,595)
(24,094)
Adjustments for:
Depreciation and amortisation
794
684
1,362
Loss on disposal of property, plant and equipment
-
-
48
Gain on curtailment or remeasurement of right-of-use asset
-
(23)
(26)
Impairment of inventory
-
181
222
Reversal of impairment of inventory
(35)
(425)
(361)
Obsolete inventory
-
114
191
Impairment of trade receivables
-
-
492
Impairment of contract assets
-
-
63
Other impairment charges
-
-
489
Share-based payments charge
430
245
801
Net finance costs/(income)
(352)
19
(696)
Loss on unrealised foreign currency transactions
83
177
242
(11,134)
(9,623)
(21,267)
Changes in operating assets and liabilities
(Increase)/decrease in inventory
(6,100)
(4,451)
2,992
Decrease/(increase) in contract assets
231
490
(159)
Decrease/(increase) in trade receivables and other receivables
755
233
(2,998)
Decrease/(increase) in other assets and prepaid inventory
1,835
(1,412)
899
Increase in other non-cash operating working capital
(80)
(208)
(25)
(Decrease)/increase in trade payables
(128)
401
3,078
Increase in other liabilities
-
1,613
13
Increase/(decrease) in contract liabilities
1,459
323
(646)
Increase/(decrease) in warranty provision
(98)
-
135
Increase in onerous contract provision
-
-
296
(2,126)
(3,011)
3,585
Cash used in operations
(13,260)
(12,634)
(17,682)
11 Subsidiary Incorporations
During the period, the Group incorporated two wholly owned subsidiaries as part of its international expansion strategy. Invinity India Limited was incorporated on 23 March 2026 to support participation in energy storage opportunities in India, while Invinity New Energy (Xiamen) Co., Ltd. was incorporated on 29 April 2026 as a wholly owned subsidiary of Invinity Asia Limited to support the Group's planned activities in China. As both entities were newly incorporated and had limited operations during the period, their incorporation did not have a material impact on the Group's consolidated financial statements.
12 Taxation
No income tax expense has been recognised for the six months ended 30 June 2026 (2025: £nil), and no deferred tax asset has been recognised.
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Current Tax
Current tax on profits in the year
-
-
-
Total current tax expense
-
-
-
13 Goodwill and Intangible Assets
Goodwill
Patents and Certifications
Software and Domain Names
Development Costs
Total
£000
£000
£000
£000
£000
Cost
At 1 January 2026
23,944
203
29
-
24,176
Additions
-
-
-
918
918
Effects of movements in foreign exchange
-
-
-
-
-
At 30 June 2026
23,944
203
29
918
25,094
Accumulated amortisation
At 1 January 2026
-
(203)
(25)
-
(228)
Amortisation charge
-
-
-
-
-
Effects of movements in foreign exchange
-
-
-
-
-
At 30 June 2026
-
(203)
(25)
-
(228)
Net book value
At 1 January 2026
23,944
-
4
-
23,948
At 30 June 2026
23,944
-
4
918
24,865
Goodwill
Patents and Certifications
Software
and Domain NamesTotal
£000
£000
£000
£000
Cost
At 1 January 2025
23,944
203
32
24,179
Effects of movements in foreign exchange
--
--
(2)
(2)
At 30 June 2025
23,944
203
30
24,177
Accumulated amortisation
At 1 January 2025
--
(193)
(27)
(220)
Amortisation charge
--
(10)
-
(10)
Effects of movements in foreign exchange
--
--
1
1
At 30 June 2025
--
(203)
(26)
(229)
Net book value
At 1 January 2025
23,944
10
5
23,959
At 30 June 2025
23,944
-
4
23,948
Goodwill
Patents and Certifications
Software
and Domain NamesTotal
£000
£000
£000
£000
Cost
At 1 January 2025
23,944
203
32
24,179
Disposals
--
--
(2)
(2)
Effects of movements in foreign exchange
--
--
(1)
(1)
At 31 December 2025
23,944
203
29
24,176
Accumulated amortisation
At 1 January 2025
--
(193)
(27)
(220)
Amortisation charge
--
(10)
(1)
(11)
Disposals
--
--
2
2
Effects of movements in foreign exchange
--
--
1
1
Amortisation at 31 December 2025
--
(203)
(25)
(228)
Net book value
At 1 January 2025
23,944
10
5
23,959
At 31 December 2025
23,944
-
4
23,948
Goodwill
All goodwill is tested annually for impairment. At 31 December 2025, goodwill was tested for impairment using the fair value less cost of disposal method. The closing share price on 30 June 2026 was 28.60 pence giving a market capitalisation of £162.7 million which is more than £107.9 million higher than the Net Assets value of the Company on this date. The share price would need to have dropped below 9.64 pence for the market value to be below the Net Asset value of the Company at that date. Based on the above, no impairment loss was identified in relation to goodwill.
Patents and Certifications
There have been no events or circumstances that would indicate that the carrying value of patents and certifications may be impaired at 30 June 2026.
14 Property, Plant and Equipment
Computer
and Office EquipmentLeasehold Improvements
Vehicles and Equipment
Battery Project Under Construction
£000
Total
£000
£000
£000
£000
Cost
At 1 January 2026
698
1,107
3,312
7,790
12,907
Additions
52
11
50
4,558
4,671
Grant income applied to additions
-
-
-
(2,349)
(2,349)
Effects of movements in foreign exchange
(6)
(12)
(36)
-
(54)
At 30 June 2026
744
1,106
3,326
9,999
15,175
Accumulated Depreciation
At 1 January 2026
(531)
(643)
(1,373)
-
(2,547)
Depreciation charge
(50)
(176)
(248)
-
(474)
Effects of movements in foreign exchange
5
11
19
-
35
At 30 June 2026
(576)
(808)
(1,602)
-
(2,986)
Net book value
At 1 January 2026
167
464
1,939
7,790
10,360
At 30 June 2026
168
298
1,724
9,999
12,189
Computer
and Office EquipmentLeasehold Improvements
Vehicles and Equipment
Total
£000
£000
£000
£000
Cost
At 1 January 2025
655
1,257
2,866
4,778
Additions
37
221
863
1,121
Effects of movements in foreign exchange
(14)
(32)
(77)
(123)
At 30 June 2025
678
1,446
3,652
5,776
Accumulated Depreciation
At 1 January 2025
(504)
(623)
(1,305)
(2,432)
Depreciation charge
(38)
(126)
(181)
(345)
Effects of movements in foreign exchange
11
24
41
75
At 30 June 2025
(531)
(725)
(1,445)
(2,701)
Net book value
At 1 January 2025
151
634
1,561
2,346
At 30 June 2025
147
721
2,207
3,075
Computer
and Office EquipmentLeasehold Improvements
Vehicles and Equipment
Battery Project Under Construction
Total
£000
£000
£000
£000
£000
Cost
At 1 January 2025
655
1,257
2,866
-
4,778
Additions
102
46
1,316
14,072
15,536
Grant income applied to additions
-
-
(442)
(6,282)
(6,724)
Disposals
(49)
(181)
(364)
-
(594)
Transfers
-
8
(8)
-
-
Foreign currency exchange differences
(10)
(23)
(56)
-
(89)
At 31 December 2025
698
1,107
3,312
7,790
12,907
Accumulated Depreciation
At 1 January 2025
(504)
(623)
(1,305)
-
(2,432)
Depreciation charge
(81)
(271)
(407)
-
(705)
Disposals
47
181
309
-
537
Transfers
-
(1)
1
-
-
Effects of movements in foreign exchange
7
17
29
-
53
Depreciation at 31 December 2025
(531)
(643)
(1,373)
-
(2,547)
Net book value
At 1 January 2025
151
634
1,561
-
2,346
At 31 December 2025
167
464
1,939
7,790
10,360
The Group has no assets pledged as security. No amounts of interest have been capitalised within property, plant and equipment at 30 June 2026 (2025: £nil).
15 Other Non-Current Assets
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Sublease net investment
160
218
191
Total other non-current assets
160
218
191
The Group entered into a sublease agreement in respect of a property in the United States that is held under an existing lease arrangement. The sublease commenced during the prior year and covers the remaining lease term, ending on 31 July 2029.
16 Inventory
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Raw materials and consumables
2,429
4,574
1,474
Work in progress
2,847
3,979
866
Finished goods
3,473
1,683
296
Total inventory
8,749
10,236
2,636
17 Other Current Assets
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Project Grant Income receivable
-
2,780
-
Prepayments and deposits
808
740
2,239
Receivable from supplier arrangement
-
-
1,884
Prepaid inventory
5,474
3,889
1,361
Government grant receivable
-
-
1,448
Tax credits recoverable
494
1,078
1,770
Sublease net investment
65
56
60
Other receivables
301
188
257
Total other current assets
7,142
8,731
9,019
Prepaid inventory is recognised on inventory payments where physical delivery of that inventory has not yet been taken by the Group and is stated at the lower of cost and net realisable value.
18 Contract Related Balances
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Amounts due from customer contracts included in trade receivables
2,507
496
3,260
Contract assets (accrued income for work done not yet invoiced)
745
647
978
Non-current contract assets
225
-
225
Contract liabilities (deferred revenue related to advances on customer contracts)
(2,115)
(1,592)
(649)
Net position of sales contracts
1,362
(449)
3,814
The amount of revenue recognised in the period that was included in contract liabilities at the end of the prior year was £100,043 (2025: £37,588).
Provisions Related to Contracts with Customers
Warranty Provision
Provision for Contract Losses
Total
£000
£000
£000
At 1 January 2026
249
2,190
2,439
Charges to profit or loss
§ Provided in period
61
81
142
§ Unused amounts reversed
(99)
-
(99)
Amounts used in period
(61)
(81)
(142)
Movement due to foreign exchange
4
(23)
(19)
At 30 June 2026
154
2,167
2,321
Current
120
296
416
Non-current
34
1,871
1,905
Warranty Provision
Provision for Contract Losses
Total
£000
£000
£000
At 1 January 2025
114
1,894
2,008
Charges to profit or loss
§ Provided in period
153
-
153
§ Unused amounts reversed
-
Amounts used in period
(153)
-
(153)
Movement due to foreign exchange
(1)
(57)
(58)
At 30 June 2025
113
1,837
1,950
Current
101
316
417
Non-current
12
1,521
1,533
Warranty Provision
Provision for Contract Losses
Total
£000
£000
£000
At 1 January 2025
114
1,894
2,008
Charges to profit or loss
§ Provided in year
259
1,692
1,951
§ Unused amounts reversed
(53)
(88)
(141)
Amounts used in year
(70)
(1,274)
(1,344)
Movement due to foreign exchange
(1)
(34)
(35)
At 31 December 2025
249
2,190
2,439
Current
145
801
946
Non-current
104
1,389
1,493
Warranty Provision
The warranty provision represents management's best estimate of the costs anticipated to be incurred related to warranty claims, both current and future, from customers in respect of goods and services sold that remain within their warranty period. The estimate of future warranty costs is updated periodically based on the Company's actual experience of warranty claims from customers.
The element of the provision related to potential future claims is based on management's experience and is judgemental in nature. As for any product warranty, there is an inherent uncertainty around the likelihood and timing of a fault occurring that would cause further work to be undertaken or the replacement of equipment parts.
A standard warranty of up to two years from the date of commissioning is generally provided to customers on goods and services sold and is included in the original cost of the product. Customers are also able to purchase extended warranties that extend the warranty period for up to a total of ten years.
Provision for Contract Losses
A provision is established for contract losses when it becomes known that a contract has become onerous. A contract is onerous when the unavoidable costs of fulfilling the Group's obligations under a contract are greater than the revenue that will be earned from it.
The unavoidable costs of fulfilling contract obligations will include both direct and indirect costs.
The creation of an additional provision is recognised immediately in profit and loss. The provision is used to offset subsequent costs incurred as the contract moves to completion.
19 Trade Receivables
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Trade receivables from contracts with customers
2,507
496
3,260
Total trade receivables
2,507
496
3,260
All trade and other receivables relate to receivables arising from contracts with customers.
Trade receivables are amounts due from customers for sales of vanadium flow battery systems in the ordinary course of business. Trade receivables do not bear interest and generally have 30-day payment terms and therefore are all classified as current.
Expected credit losses on trade receivables are assessed with reference to historical loss experience, current conditions and forward-looking information. An allowance for potential credit losses of £388,747 (H1 2025: £nil) has been recognised and balance has been presented net of this allowance.
20 Cash and Cash Equivalents
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Cash and cash equivalents
10,510
5,738
3,789
Term deposits
-
13,002
25,000
Total cash and cash equivalents
10,510
18,740
28,789
Term deposits are presented as cash equivalents if they have a maturity of six months or less from the date of acquisition, are readily convertible to a known amount of cash and are subject to an insignificant amount of risk of change in value.
21 Trade and Other Payables
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Trade payables
5,306
3,498
5,568
Other payables
-
-
-
Accrued liabilities
389
423
811
Accrued employee compensation
1,673
696
1,128
Government remittances payable
2
130
32
Total trade and other payables
7,370
4,747
7,539
Trade payables are unsecured and are usually paid within 30 days.
The carrying amounts of trade and other payables are the same as their fair values due to the short-term nature of the underlying obligation representing the liability to pay.
22 Derivative Financial Instruments
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Derivative value of warrants issued
67
203
135
Total derivative financial instruments
67
203
135
23 Other Current Liabilities
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Deferred Project Grant Income
-
1,665
1,799
Deferred income under Joint Development & Commercialisation Agreement
-
531
-
Other current liabilities
13
13
13
Total other current liabilities
13
2,209
1,812
24 LoDES Project Grants
The Company was awarded a £10.0 million government grant from the Department for Energy Security and Net Zero (DESNZ) to support product deployment activities in relation to the Long Duration Energy Storage (LoDES) funding programme.
The project grants from DESNZ were recognised as follows:
30 June 2026
30 June 2025
31 December 2025
Note
£000
£000
£000
Grant income against capital assets
14
550
-
5,700
Grant income against capital assets recognised from deferred grant income
14
1,799
-
-
Grant income accrued against capital assets
-
-
1,024
Grant income against other items of operating income
-
582
623
Grant income recognised in the period
2,349
582
7,347
Grant income deferred
-
1,176
1,799
Total Project Grants
2,349
1,758
9,146
Total approved grant funding relating to 2025 and 2026 project execution amounted to £9.7 million. Of the total £10.0 million awarded grant, £0.3 million was recognised in 2023, £9.1 million recognised or deferred in 2025, and a further £0.6 million recognised in 2026.
The related funding has been recognised in line with qualifying project expenditures and the achievement of applicable project milestones under the relevant grant arrangement.
See note 26 for details of the restatement.
25 Related Parties
Vanadium Electrolyte Rental Limited ("VERL") is a joint venture of the Group and is accounted for using the equity method. During the six months ended 30 June 2026, the Group recorded sales of £35,000 (H1 2025: £nil) to VERL. Outstanding balances with VERL at 30 June 2026 comprised amounts receivable of £35,000 and amounts payable of £nil. All transactions were undertaken on normal commercial terms and conditions.
30 June 2026
30 June 2025
31 December 2025
£000
£000
£000
Sales of goods and services to VERL
35
-
-
Purchases of goods and services from VERL
-
-
-
Amounts owed by VERL
35
-
-
Amounts owed to VERL
-
-
-
No impairment charge was recognised in respect of balances due from VERL during the period (H1 2025: £nil). The only other related parties of the Company are the key management and close members of their family. Key management has been determined as the CEO and his direct reports.
There have been no other related party transactions in the period.
26 Restatement of Comparative Equity Balance Following Redomiciliation and the LoDES Project Grants
During the six months ended 30 June 2026, management identified matters requiring the restatement of comparative information in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The restatements relate to:
· the accounting treatment and presentation of grant funding associated with the LoDES project; and
· the presentation of equity following the Group's January 2025 redomiciliation to the United Kingdom.
Neither restatement affects the Group's cash and cash equivalents or total cash flows. The redomiciliation adjustment relates solely to the presentation of equity reserves and has no impact on total equity.
Redomiciliation Equity Presentation Restatement
During the preparation of the Group's 2025 annual financial statements, the Group revisited the presentation of equity arising from the January 2025 redomiciliation of the Group from Jersey to England and Wales. The redomiciliation was completed through a share-for-share exchange whereby Invinity Energy Systems plc became the ultimate legal parent of the Group. Management concluded that, in the consolidated financial statements, the issued share capital presented should reflect the share capital of the new legal parent, with the difference between the legal parent's share capital and share premium balances of the former Jersey parent presented within merger reserve. The transaction continues to be accounted for as a common control transaction using predecessor accounting and does not affect the measurement of the Group's assets, liabilities or total equity.
Accordingly, the comparative statement of financial position as at 30 June 2025 has been restated. The redomiciliation adjustment represents a reclassification within equity arising from a revised presentation of the Group's share capital, share premium and merger reserve. The adjustment has no effect on total equity, net assets, profit or loss, earnings per share or cash flows.
LoDES Project Grant Restatement
During the preparation of the Group's 2025 annual financial statements, management reassessed the accounting treatment applied to grant funding received under the LoDES project. As a result of this review, the allocation of the grant funding between grant income, project expenditure and deferred grant income was revised to better reflect the Group's accounting policy and the requirements of IAS 20. Comparative information has therefore been restated.
Restatement as at 30 June 2025.
Consolidated Income Statement (extract)
Six Months Ended 30 June 2025 (as previously reported)
Six Months Ended 30 June 2025 (Redomiciliation restatement)
Six Months Ended 30 June 2025 (LoDES restatement)
Six Months Ended 30 June 2025
(as restated)
£000
£000
£000
£000
Operating costs
Administrative expenses
(10,178)
-
533
(9,645)
Other items of operating income and expense
1,938
-
(1,176)
762
Loss from operations
(10,170)
-
(643)
(10,813)
Loss before income tax
(9,952)
-
(643)
(10,595)
Loss for the period/year
(9,952)
-
(643)
(10,595)
Consolidated Balance Sheet (extract)
Six Months Ended 30 June 2025 (as previously reported)
Six Months Ended 30 June 2025 (Redomiciliation restatement)
Six Months Ended 30 June 2025 (LoDES restatement)
Six Months Ended 30 June 2025
(as restated)
£000
£000
£000
£000
Other current liabilities
Deferred project grant income
(1,022)
-
(643)
(1,665)
Total current liabilities
(9,188)
-
(643)
(9,831)
Equity
Called-up share capital
53,473
(49,067)
-
4,406
Share premium
215,121
(215,121)
-
-
Merger reserve
-
264,188
-
264,188
Accumulated losses
(218,022)
-
-(643)
(218,665)
Total equity
55,734
-
-
55,091
Consolidated Statement of Cash Flows (extract)
For the six months ended 30 June 2025
Six months Ended 30 June 2025 (as previously restated)
Six months Ended 30 June 2025 (Redomiciliation restatement)
Six Months Ended 30 June 2025 (LoDES restatement)
Six Months Ended 30 June 2025
(as restated)
£000
£000
£000
£000
Cash flows from operating activities
Cash used in operations
(11,991)
-
(643)
(12,634)
Net cash outflow from operating activities
(11,667)
-
(643)
(12,310)
Cash flows from investing activities
Net acquisition of property, plant and equipment and grant income received against capital projects
(1,224)
-
643
(581)
Net cash outflow from investing activities
(1,224)
-
643
(581)
Cash and cash equivalents at the end of the period/year
18,740
-
-
18,740
The LoDES restatement results in a reclassification of £0.643 million between operating and investing activities within the comparative cash flow statement. There is no impact on the net decrease in cash and cash equivalents for the period and no impact on cash and cash equivalents at 30 June 2025.
27 Events Occurring After the Reporting Period
Subsequent to the reporting period, the Group entered into a Master Sale and Purchase Agreement with Dairyland Power Cooperative for the supply of 43 MWh of Endurium vanadium flow battery systems. The contract became effective on 15 July 2026 and was executed on 31 July 2026. As the contract was entered into after the reporting date, it has not been recognised in these financial statements and is considered a non-adjusting subsequent event.
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