Pod Point slumped on Monday after warning it expects to swing to a full-year loss amid slowing growth.
The company, which provides electric car charging points, now expects an adjusted EBITDA loss of around £7m for 2022, while revenues are expected to be around £70m. This compares to a profit of £58,000 in 2021 and revenues of £61.4m.
For 2023, it expects full-year revenues of around £85m to £90m and an adjusted EBITDA loss amid ongoing supply chain and macroeconomic issues.
Pod Point said growth in the second half of 2022 has slowed markedly, as supply chain challenges in car manufacturing caused reduced deliveries into the UK. Automotive companies continue to report long lead times for customers wishing to place orders, it noted.
The company also said that data from the Society of Motor Manufacturers and Traders has shown the growth rate of Plug-in-Vehicles (PIVs) from 2020 to 2021 was 76% year-on-year. The growth of PIVs in the first half of the year of 26% has since slowed to 7% in the four months to 31st October, it said. These continued trends indicate the total market for PIVs will be circa 350,000 in 2022 and circa 375,000 in 2023.
“The group is expected to maintain a strong balance sheet and to end 2023 with around £50m 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,” it said.
“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.”
At 0950 GMT, the shares were down 15.2% at 64.62p.
