Pod Point FY revenues to miss guidance, shares tumble
By Michele Maatouk
Date: Monday 20 Jan 2025
(Sharecast News) - Pod Point tumbled on Monday as it warned that full-year revenues and net cash were set to be lower-than-expected due to ongoing weakness in the private new car segment of the electric vehicle market.
In an update for the year to the end of December, the provider of EV charging solutions said the adjusted EBITDA loss was expected to be in line with guidance of around £14m.
However, revenue was expected to come in at around £53m, below guidance of approximately £60m.
Pod Point also said that as at the end of December, net cash was £5.3m, versus guidance of £15m.
This was driven by an expansion in working capital as a result of a shift in business mix, the company said.
It said that weakness in the private EV market led to a reduced revenue contribution from the home segment, where cash is received ahead of costs incurred.
"The relative increase in contribution of commercial customer sales results in an increase in the group's debtor book," Pod Point explained. "The implementation of a new ERP system also had a short-term impact on cash collections that will unwind during H1 2025."
Chief executive Melanie Lane said: "Pod Point has achieved a lot in 2024 against a difficult market backdrop. As expected, 2024 has proven to be a transitional year in terms of our financial performance. We made good progress on our costs, but the weaker-than-expected private EV market has negatively impacted revenues."
At 1045 GMT, the shares were down 39% at 10.32p.
Russ Mould, investment director at AJ Bell, said: "Never mind a speed bump, the latest shift in Pod Point's trajectory feels more like a blown tyre in a pothole as the slower pace of electric vehicle roll-out has stymied its ambitions.
"A roll-out of at-home electric charging requires an expansion in the number of electric vehicles on the road. After all, people will only get this kit installed if they're confident they are going to be bringing an EV home in the near term.
"However, a combination of factors like range anxiety, pressures on consumer spending and cost have acted as a roadblock to the adoption of EVs at the levels which Pod Point was counting on when it joined the market in 2021.
"The shares are trading at just a fraction of their listing price and the cash buffer the company has long enjoyed is being eroded. This is partly a result of the shift from home charging, where Pod Point gets paid upfront, to charging points in other locations.
"The problem for the company is that the point at which it becomes cash flow positive is moving further into the distance and, like a motorist whose fuel or charge is becoming depleted, this is more uncomfortable when the company's money in the bank is draining away."
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