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Pod Point, a leading pioneer in the electric vehicle charging sector, has announced deeper than anticipated losses and a concerning cash burn rate for the current financial year. The company, majority-owned by French energy giant EDF with a 53 per cent stake, saw its shares plunge 35 per cent to 10¾p on Monday, marking their lowest point since the 2021 listing.
The dramatic decline represents a significant setback for major institutional shareholders, including Legal & General and Schroders. Investors who purchased shares at the initial listing price of 225p, when the company raised nearly £100 million, have witnessed a stark deterioration in value. The company’s market capitalisation has plummeted from £350 million at flotation to a mere £17 million.
The company’s business model, centred on home-installed chargers, has been severely impacted by the lacklustre private buyer market for electric vehicles. Despite the UK surpassing Germany as Europe’s largest market for new electric car sales, an estimated mere one in ten purchases are made by private retail buyers, with the vast majority going to business fleets or company car schemes.
Revenue projections for 2024 have fallen short by almost 12 per cent, reaching £53 million against an expected £60 million. Cash reserves have dwindled significantly from £15 million to just over £5 million, prompting the company to access credit facilities provided by EDF. Analysts now project losses of £14 million for 2024, with an additional £13 million in losses anticipated for 2025.
The recent government consultation on the zero emission vehicle mandate has introduced additional sector uncertainty. While officials from the Department for Transport maintain that the review won’t affect private investment in public charging infrastructure, the market remains sceptical. The government’s target of 300,000 public charging points by 2030 appears ambitious, with current installations standing at approximately 70,000.
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