LED iBond: Transformation Towards Growth and Market Expansion

Today, LED iBond International's (LED iBond) Board of Directors approved the annual report for 2024 to be submitted for approval at the annual general meeting on 24th April 2025. Flemming Thomsen, CEO (Interim) of LED iBond international comments:

2024 has been a year of continued transformation for LED iBond, where we have taken significant steps towards building a more scalable and profitable business. Despite market challenges, we have successfully optimized our operational setup, reduced costs, and strengthened our position in key segments.

We have seen solid growth in our pipeline and achieved our revised guidance for 2024 with a revenue of DKK 7-8 million. At the same time, we have established a strong foundation for further growth in 2025, where we are guiding revenue of DKK 17-19 million.

A major strategic decision in 2024 has been to outsource our production from Farum to a European location with Danish warehousing and quality control. This move will be effective in Q2 2025 and will ensure a more scalable and cost-effective production setup, which is crucial for our ambition to strengthen gross margins and accelerate growth in the coming years.

Key Figures 2024 and 2025

• Revenue: DKK 7.2 million
• Expected revenue in 2025: DKK 17-19 million
• EBITDA improvement to the range of minus DKK 3 million to minus DKK 2 million in 2025
• Significant reduction in cash burn
• Gross margins: Expected improvement due to an 18% reduction in production costs
• Capital raise: During Q2 2025 the company will, as previously announced, launch a capital increase to partially repay loans granted during 2024 and to further increase cash liquidity in the company

Financial key figures

Business development

Market Expansion

Our toplighting product, HORTISABER, has gained significant interest across Europe, and we see strong growth opportunities in commercial greenhouses. The unique product design and competitive pricing structure have allowed us to secure new orders, and we anticipate further market expansion in 2025.

Our Canopy panels have experienced a notable increase in demand from service and fuel stations, further solidifying our position in the sustainable building lighting sector. This increased interest reflects a broader market trend towards energy-efficient lighting solutions, where LED iBond holds a strong competitive position.

Operational Optimization & Financial Improvements

• Production Outsourcing: To reduce costs and ensure scalability, we have decided to relocate production from Farum to a European location with Danish warehousing and quality control. This move will provide lower unit costs, higher margins, and improved flexibility as order volumes increase.
• Supply Chain Efficiency: We have negotiated new supplier agreements and optimized our logistics, contributing to the 22% reduction in production costs.
• Capital Raise: A new DKK 10-12 million capital raise has been initiated, securing additional liquidity for growth initiatives.

Outlook for 2025

• Accelerated Revenue Growth: With a strong pipeline and increasing market adoption of our products, we are guiding revenue of DKK 17-19 million.
• Improved Profitability: The optimized production structure and growing sales pipeline are expected to significantly enhance our EBITDA.
• Focus on Market Expansion in European and Middle Eastern markets: We will continue to invest in growth within both the smart building and greenhouse industries.
• Organizational Structure: With anticipated growth in both revenue and production volume, we will continuously adapt our organization and processes to ensure scalability and operational efficiency.

Closing Remarks

LED iBond International is in the final phase of a strong transformation process, transitioning from a restructuring phase to targeted growth. With a solid product portfolio, improved cost structure, and strong market interest, we are excited about realizing our ambitions in 2025 and beyond.

Financial Development

• In Q4 2024, LED iBond generated revenues of TDKK 2,200, an increase of TDKK 1,319 (+150%) relative to the same quarter last year. For the full year revenue increased from TDKK 2,597 in 2023 to TDKK 7,249 in 2024 (+179%).
• EBITDA for Q4 amounted to a loss of TDKK 681 compared to a loss of TDKK 3,726 for Q4 2023. For 2024, EBITDA was improved by TDKK 1,626 compared to 2023 primarily due to other operating income from EUDP grants
• Net loss for Q4 2024 amounted to TDKK 1.512 and net loss for the year amounted to TDKK 13,879 an improvement of TDKK 7,982 compared to 2023. The improvement is mainly due the steps taken towards building a more scalable and profitable business.
• From a perspective of prudency, the company has chosen to continue to maintain its deferred tax asset to zero. As revenue and profit growth start to materialise in scale, the company will be able to rebuild the deferred tax asset recorded on the balance sheet. Total tax losses carried forward per 31 December 2024 amounts to appx. MDKK 122 and represents a value of more than MDKK 27 (at 22% company tax rate) of which none is reported on the balance sheet per 31 December 2024.
• The cash balance on 31 December 2024 amounted to TDKK 6,314 compared to TDKK 4,555 on 31 December 2024.
• On 31 December 2024, the company's equity amounted to TDKK -535 against TDKK 13,350 on 31 December 2023.

Financial outlook 2024 & 2025

Based on current orders and pipeline, the board of directors and the executive management announce the financial outlook for 2025 as the following and as stated in company announcement 116 26 March 2025:

• Revenue of DKK 17 - 19 million for 2025
• EBITDA in the range of minus DKK 3 million to minus DKK 2 million
• Positive cash flow from operations during 2025 

The audited annual report for 2024 is attached to this company announcement and is available here: https://ledibond.com/financial-reports/