Volt Group Accelerates Growth with 20% Revenue Rise and EcoQuip Expansion

Strong Financial Momentum in FY24

Volt Group Limited (ASX: VPR) has delivered a solid operational update for the fourth quarter of FY24, reporting a 20% increase in ordinary revenue receipts to $5.24 million, up from $4.38 million in FY23. This growth was complemented by a 28% rise in net cash from operating activities, which reached a record $1.90 million, underscoring improved cash generation and operational efficiency.

The company closed the calendar year with a healthy cash balance of $2.3 million, providing a stable financial platform to support ongoing expansion initiatives.

EcoQuip Leads the Charge with Market Expansion

The standout performer was Volt’s EcoQuip division, which achieved a remarkable 67% growth in FY24 revenue receipts, totaling $1.95 million. This surge was driven by increased deployment of its Mobile Solar Light Towers (MSLTs), including an expanded trial at Chevron’s onshore gas operations in Texas, USA, where the fleet grew from 2 to 8 units.

EcoQuip’s zero-emission MSLTs, designed to replace diesel-fuelled lighting with solar-powered alternatives, offer significant cost savings and safety benefits. The company also initiated deployments with Thiess Pty Ltd at multiple mining sites, following the signing of an evergreen plant hire contract, signaling strong commercial traction in the mining sector.

Negotiations with major resource players such as BHP Iron Ore, Westgold, and Macmahon are advancing, with the potential to scale EcoQuip’s footprint substantially, particularly if the BHP Pilbara trial expands to a fleet of 200-300 units.

Wescone’s Steady Performance and New African Partnership

Wescone, Volt’s sample crusher business, maintained steady sales aligned with budget forecasts, supplying Tier 1 resource clients across Australia, Africa, and Canada. A new distribution partnership with Mineral Innovative Technologies (MIT) in Africa was secured, replacing a previous distributor and positioning Wescone to deepen its market penetration in the African minerals sector.

Advancing ATEN Waste Heat to Power Technology

Volt is progressing its ATEN Waste Heat to Power system, a zero-emission technology that converts industrial waste heat into baseload electricity. A Concept Study for Synergy, Western Australia’s largest energy retailer and generator, was completed and is set for submission in early February 2025.

The ATEN system promises to enhance power station efficiency by 15-30%, reduce emissions, and lower levelised cost of electricity by up to 50% compared to gas generation. Its compatibility with renewable energy sources and eligibility for Safeguard Mechanism Credits position it well amid Australia’s energy transition.

Outlook and Strategic Focus

Volt’s strategy to commercialize its zero-emission technologies and expand its equipment hire footprint is gaining momentum. The company’s focus on scaling EcoQuip deployments in the US and Australia, advancing ATEN’s commercial viability, and strengthening Wescone’s distribution network reflects a diversified growth approach.

While ongoing contract negotiations and trials carry inherent uncertainties, Volt’s FY24 results and operational progress provide a compelling narrative of innovation-led growth in the renewable energy and mining equipment sectors.