Drone Volt SA

Highlights:

• Arrowhead is updating its coverage on Drone Volt with a fair value bracket of EUR 0.03 to EUR 0.07 (share price on August 22, 2023: EUR 0.0096) based on the Discounted Cash Flow (DCF) method.
• In H1 2023, Drone Volt reported revenue of c. EUR 16.2 mn, a significant rise from EUR 4.0 mn in H1 2022. The revenue achieved during H1 2023 has seen an 18% increase over the revenue achieved for the full year FY 2022. Revenue from Drone Volt Factory, Services & Academy declined 48% year-on-year (YoY) to EUR 0.7 mn. The decline was majorly accentuated due to the end of royalty invoicing in the US. The company invoiced 29 drones in H1 2022, as compared with 27 drones invoiced during H1 2023, including 19 HERCULES 20 bestsellers. The Distribution segment generated EUR 15.5 mn, up 486% YoY. This growth was driven by the biggest order ever the company received of more than EUR 20.0 mn in February 2023. Within four months, the company delivered, invoiced, collected, and recognized in revenue c. EUR 12.0 mn and expected the balance to be executed by H2 2023. The gross profit reached EUR 1.6 mn, a 17% rise from EUR 1.4 mn in H1 2022, with a consolidated gross margin of 10% in H1 2023 as compared with 34% in H1 2022. The difference in gross margin was due to the evolution of the product mix with growth driven by the distribution activity and the termination of license fee billings to Aquiline Drones.
• The company recently announced the acquisition of the assets of “Aeraccess Services,” formerly Air Marine, which will help Drone Volt to set up a new division based in Saucats, near Bordeaux. The strategic acquisition is in line with the company’s plan to grow its “Drone as a Service” segment, which will significantly improve the company’s gross margin, thereby providing a good offering mix.
• Drone Volt’s continued focus on its strategies and investments has reaped rewards as the company has bagged its first significant contract. A large European company has awarded Drone Volt its first service contract under its “Drone as a Service” offering. The company has been entrusted with inspection missions by drones to determine the maintenance operations to be carried out, ensuring any compliance checks of these operations. That presents the company with the potential to increase the topline by several hundred thousand euros. Furthermore, the company is in advanced negotiations with major French and international companies to extend its service offerings.
• The company has a strong outlook as it expects to double its revenue in FY 2023, driven by negotiations on significant orders, a strong customer base, a reinforced geographic network, and expansion of its products and services, coupled with the commercial launch of the LINEDRONE and the development of the “Drone as a Service” offerings.

Highlights:

• DRONE VOLT has obtained authorization from the Evry Commercial Court to take over the tangible and intangible assets, including the customer portfolio of Aeraccess Services, formerly Air Marine.
• This announcement complements the one made in June 2023 concerning the recruitment of 12 experts who previously worked for Aeraccess Services, France’s leading network for aerial drone operations.
• DRONE VOLT is creating a new division, based at Saucats, near Bordeaux, Aeraccess Services’ premises.
• This transaction, for a sum of well under €100,000, demonstrates DRONE VOLT’s determination to grow its “Drone as a Service” activities.
• These activities should make a significant contribution to the Group’s gross margin.

Highlights:

• Half-year sales up 4-fold to €16.2 million;
• Strong impact of largest-ever contract signed in February 2023 (€12 million at end June);
• Numerous growth drivers for the second half of the year, thanks to new, high value-added offerings;
• Confirmation of annual target of doubling of sales by 2023.

Highlights:

• A major European company in the energy sector has awarded DRONE VOLT its first service contract. This is the first commercial success for the unique “Drone as a Service” offering, which is based on invoicing per use rather than on ownership of the drones. The service was launched during spring 2023.

Highlights:

• Arrowhead is updating its coverage on Drone Volt with a fair value bracket of EUR 0.14 to EUR 0.17 (share price on May 15, 2023: EUR 0.0187) based on the Discounted Cash Flow (DCF) method.

• The revenue for FY 2022 stood at EUR 13.7 mn as compared to EUR 8.6 mn in FY 2021, up by 59.4% YoY. The consolidated gross profit was EUR 2.9 mn, with a gross margin of 21.1% as compared to 34.7% in FY 2021.
• Recently, the company secured the largest order which exceeded EUR 20.0 mn, of which the company has already received a 10% deposit, while the rest of the proceeds are expected to be received during Q2 2023. As a result, the company is poised for impressive growth for FY 2023.
• The company expects to double its revenue in FY 2023, driven by ongoing negotiations on significant orders, a strong customer base, a reinforced geographic network, and expansion of its products and services, coupled with the commercial launch of the LINEDRONE and the development of the “Drone as a Service” offer.
• The newly launched LINEDRONE has been developed in collaboration with Hydro-Quebec and specializes in facilitating complex inspections of high-voltage electricity transmission lines. The company initiated its production after its successful validation tests in real-world scenarios and will be able to deliver its first units by Q2 2023.
• To monetize its second offering, “Drone as a Service”, the company plans to exercise a pay-as-you-go offer which is based on invoicing as per the use. The company believes that this strategy will facilitate commercial deployment as it will replace significant investment for the customers.
• DRV acquired Skytools, a drone distributor and service provider, to grow its revenue base and expand into new markets, which contributed to c. EUR 1.1 mn in FY 2022. The company has also acquired a Danish company, Lorenz Technology ApS, which specializes in drone-based inspection and surveillance solutions.
• The company is continuously expanding its product lines, with plans to unveil new drones in FY 2023. It has obtained a Loan of EUR 2.5 mn granted by Bpifrance to support its research and development (R&D) efforts.
• It has announced its decision to temporarily suspend the invoicing of production licenses to its American partner, AQUILINE DRONE, and will now devote all its commercial efforts to the distribution of the HERCULES 20 model.
• The company has planned to raise 3.0 mn in early FY 2023 as it has terminated its convertible bond financing contract signed with Atlas Special Opportunities.

Highlights:

• DRONE VOLT acquires Lorenz Technology ApS, a Danish company specializing in drone-based inspection and surveillance solutions.
• Lorenz Technology ApS’s software development and automation expertise will complement DRONE VOLT’s hardware capabilities, resulting in a more comprehensive offering for clients worldwide.
• The acquisition will provide DRONE VOLT with a stronger foothold in the European market and access to Lorenz Technology ApS’s established client base and partnerships, allowing the company to expand its reach and tap into new opportunities in Europe.

Highlights:

• DRONE VOLT announces the signature of an order worth more than 20 million euros
• The order is expected to be delivered and invoiced in the first half of 2023, marking a further acceleration in the group’s activity after a particularly significant second half of 2022

Highlights:

• Arrowhead is updating its coverage on Drone Volt with a fair value bracket of EUR 0.16 to EUR 0.20 (share price on February 14, 2023: EUR 0.01) based on the Discounted Cash Flow (DCF) method.
• The revenue for FY 2022 stood at EUR 13.4 mn in comparison with EUR 8.7 mn in FY 2021, a growth of 53.3% year-on-year (YoY). This growth was mainly attributable to Q4 revenue which was up by 126% YoY. The consolidated gross profit margin for FY 2022 stood at 20.6% in comparison with 35.0% in FY 2021. The gross profit margin of high-value-added activities stood at 62.3% in FY 2022, while the gross profit margin of third-party brands stood at 14.6% in FY 2022.
• The company recently has announced its decision to temporarily suspend the invoicing of production licenses to its American partner AQUILINE DRONE and will now devote all its commercial efforts to the distribution of the HERCULES 20 model.
• Drone Volt announced the sale of a Heliplane LRS, a Vertical Take-Off and Landing (VTOL) drone, to Groupe Gilbert who is a major player in transportation, logistics and civil and mining engineering in Canada, which the company believes might pave the way for future deployment of this type of solution in Canada and the United States (US).
• The company also announced the sale of solutions to GE Renewable Energy Offshore Wind, a subsidiary of GE Renewable Energy, including six HERCULES 2 drones, two HERCULES 20 drones and a training program for refuelling and control missions of an offshore wind farm.
• The company announced that LineDrone, a drone for inspection of power transmission lines, developed with Hydro Quebec, has satisfied all the technical requirements as per the latest tests carried out in the laboratory and outdoors on the high voltage lines. The company plans to start its demonstration campaigns from Q1 2023 onwards.
• With several studies and demonstrations of the company’s flagship products, such as the HERCULES 20 drones and the HELIPLANE, the company has won customers and prospects across Europe and North America.
• The company has a strong outlook for FY 2023, driven by strong customer base, reinforced geographic network, expanding range of products and services coupled with the commercial launch of the LINEDRONE and the development of the “Drone as a Service” offer.

Highlights:

• Annual Turnover of 13.4 million euros, exceeding the target of more than 10 million euros
• Successful diversification of the customer portfolio in Europe after the successful integration of Skytools
• Gross margin impacted in the short term by the evolution of the product mix before the ramp-up of DRONE VOLT’s product and service sales to new customers
• Ambition to improve the product mix in 2023 with the commercial launch of the LINEDRONE below and the development of the “Drone as a Service” offer