Pod Point braces for 2023 losses as EV deliveries fall
Pod Point expects demand for plug-in vehicles – and thus its business – to rebound in the long term
EDF-owned home charger supplier blames losses on long lead times for new plug-in vehicles
Electric vehicle charger supplier Pod Point expects to make multi-million-pound losses in 2022 and 2023, it has confirmed.
In a profit warning statement issued today, it attributed the problem to the supply chain issues restricting the delivery of new plug-in vehicles (PIVs), thereby limiting demand for home charger installations.
“The growth of PIVs in the first half of 2022 of 26% has since slowed to 7% in the four months to 31 October 2022,” Pod Point noted, citing data from the Society of Motor Manufacturers and Traders (SMMT).
As such, the firm expects to generate around £70 million in revenue in 2022, with a loss (before interest, taxes, depreciation and amortisation) of £7m.
The company lost £14.3m in 2021, of which £8.2m was attributed to one-off IPO costs plus establishing a long-term share scheme.
Despite reduced demand, the firm does not expect its full-year market share to be reduced compared with its long-term historical share. This is because of customers who scheduled installations ahead of the withdrawal of the Electric Vehicle Homecharge Scheme (EVHS) on 31 March.
Pod Point expects the supply chain issues and wider economic problems – chancellor Jeremy Hunt last week told the House of Commons the UK was “now in recession” – to incur further losses through 2023. However, these would be limited to the “mid-single” digits, it said.
Nonetheless, Pod Point expects the UK to rebound in the long term, “fully” expecting the UK to meet its goal of banning sales of new pure-petrol and diesel cars by 2030.
In contrast, the SMMT warned earlier this month that, despite the likelihood of recovery, growth in EV uptake must accelerate to meet 2030 goals.
SMMT chief executive Mike Hawes said: “Next year’s outlook shows recovery is possible and EV growth looks set to continue but, to achieve our shared net zero goals, that growth must accelerate and consumers [must be] given every reason to invest.
“This means giving them the economic stability and confidence to make the switch, safe in the knowledge they will be able to charge – and charge affordably – when needed.
“The models are there, with more still to come; so must the public charge points.”