Trading StatementSource: RNS
21 November 2022
Pod Point Group Holdings plc
The long-term market for Plug-In-vehicles (PIVs) continues to be attractive as the industry grows towards electrification in the UK by 2030.
However, growth in the second half of 2022 has slowed markedly, which has been driven by supply chain challenges in car manufacturing causing reduced deliveries into the UK. Automotive companies continue to report long lead times for customers wishing to place orders.
SMMT data demonstrates that the growth rate of PIVs from 2020 to 2021 was 76% year on year. The growth of PIVs in the first half of 2022 of 26% has since slowed to 7% in the four months to 31st October 2022. These continued trends indicate the total market for PIVs will be circa 350,000 in 2022 and circa 375,000 in 2023.
As noted in the interim results, our first half 2022 market share in the Home segment (calculated as number of Home installs divided by new PIV registrations) benefitted from customers scheduling their installs in advance of vehicle delivery ahead of the cessation of the Government funded OZEV home grant on 31 March 2022. This scheduling change remains a factor in the current market, and allowing for this, we expect full year market share in the Home segment to stabilise around our long term historical share.
As a result of these challenges the Group expects full year 2022 revenues to be approximately £70m with an adjusted EBITDA loss of circa £7m.
The Group continues to benefit from a strong balance sheet with year-end cash expected to be in excess of £70 million in line with guidance provided at H1.
Whilst it is today difficult to predict the outcome for 2023, we are prudently assuming that these supply chain and macroeconomic issues extend into 2023, and thus the Group expects full year revenues for 2023 to be in the region of £85 to £90m.
This reduction in revenues will impact adjusted EBITDA, delivering a mid-single digital adjusted EBITDA loss in 2023.
The Group is expected to maintain a strong balance sheet and to end 2023 with around £50 million of cash, after required investment. We will continue to invest in hardware and software development to drive revenue growth, combined with further investment in Owned Assets at a targeted and limited level.
In the longer term, the Group expects the UK to return to rapid growth in PIV registrations as the supply chain restrictions and general economy recover. We fully expect the UK to achieve its goal of banning new internal combustion engine cars by 2030, and hence foresee strong growth in demand for charging infrastructure over the next decade and beyond.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Group's obligations under Article 17 of MAR.
Tulchan (Public Relations adviser to Pod Point)
James Macey White/ Mark Burgess/ Matt Low/ Arthur Rogers
+44 (0)20 7353 4200 / PodPoint@tulchangroup.com
BofA Securities (Joint Corporate broker)
Peter Luck, Marcus Jackson, Mitchell Evans
+44 (0)20 7628 1000
Numis (Joint Corporate broker)
+44 (0)20 7260 1000