Drone Volt SA

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

Highlights:

• DRONE VOLT announces the sale of 4 HERCULES 20 in the United States
• The order was for 4 HERCULES 20 drones in the high-pressure spray configuration, which were produced in the DRONE VOLT FACTORY, invoiced and fully paid for prior to delivery

Highlights:

• DRONE VOLT has announced an upward revision of its 2022 revenue target thanks to the very good commercial momentum underway
• Following the publication of its activity at the end of September 2022, DRONE VOLT had announced that it was targeting double-digit growth in its revenues compared to the 2021 level (€8.6 million)
• DRONE VOLT was able to rely on the latest financing raised (Bpifrance loan and convertible bonds) to ensure its supplies in a market that remains under pressure

Highlights:

• New turnover record at the end of September 2022 thanks to the diversification of the client portfolio
• Favourable commercial outlook for the end of the year, enabling double-digit annual growth to be anticipated
• Confidence for 2023 particularly with the commercial launch of the LINEDRONE and the development of the “Drone as a Service” offer

• Arrowhead is updating its coverage on Drone Volt with a fair value bracket of EUR 0.15 to EUR 0.21 (share price on June 21, 2022: EUR 0.03), based on the Discounted Cash Flow method 
• Drone Volt acquired the assets of Viking Drone, a Danish drone manufacturer specializing in manufacturing connected drones for developers and integrators. The acquisition, funded in an all-cash transaction, will strengthen Drone Volt’s technologies and offerings
• Drone Volt partnered with Pragma Industries, a manufacturer of compact hydrogen cells. The joint venture will focus on developing drones with improved flight time for transport and surveillance missions, providing fixed or rotary-wing drones with hydrogen engines
• Drone Volt delivered two Hercules 20 drones to the French Navy and can potentially receive a larger order
• Drone Volt’s revenue for Q1 2022 amounted to EUR 1.7 mn, which declined slightly by 3.2% on a year-on-year (YoY) basis owing to a slight slowdown in the activity compared with Q1 2021
• Revenue from the higher-value-added activities declined by 0.1% on a YoY basis (amounting to EUR 789k). In comparison, revenue from the distribution activities decreased by 5.7% on a YoY basis (amounting to EUR 956k)
• Gross Profit decreased by 9.9% YoY and amounted to EUR 627k in Q1 2022