👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Equipmake announces growth amid operational challenges

Published 11/29/2024, 03:06 PM

LONDON - Equipmake Holdings PLC, a developer of electrification technologies for vehicles, reported a significant revenue increase for the fiscal year ending May 31, 2024, despite facing operational challenges. The company, which specializes in electric vehicle components and drivetrain solutions, saw its revenue rise approximately 60% to £8.1 million from £5.1 million the previous year.

The growth was primarily attributed to the demand for the company's bus repowering services, which contributed £3.9 million compared to £0.9 million in the prior year. However, this rapid expansion resulted in a gross loss for the bus repowering business line due to cost challenges and unanticipated expenses. Despite this, Equipmake believes the service demonstrates the quality and reliability of its products, aiding in accelerating interest from OEMs and Tier 1 suppliers.

Equipmake also secured several new contracts throughout the year, including agreements with Textron (NYSE:TXT) for an electric-powered airside de-icing vehicle, Perkins Engine Company for a hybrid system, H55 for electric aircraft motors, and contracts with Big Bus Tours and Golden Tours for electric drivetrain solutions.

The company raised £4.1 million from investors in February 2024 to support future growth initiatives and secured government grant funding of £3.2 million for a project with Perkins Engine Company. Despite these advancements, Equipmake experienced an adjusted EBITDA loss of £7.4 million, compared to a loss of £3.6 million in the previous year, due to the labour-intensive nature of its bus repowering operations and additional staff costs.

Post year-end, Equipmake continued to focus on higher-margin drivetrain and EV components supply, signing a Manufacturing and Supply Agreement with Textron following a successful trial. However, the company's Chief Financial Officer, Tony Ratcliffe, resigned effective November 30, 2024.

The company's cash balances stood at £2.5 million as of May 31, 2024, with no debt other than finance lease obligations. Equipmake is pursuing cost-reduction initiatives and manufacturing improvements to address its operational challenges. The company's cash runway is estimated to last until approximately March 2025, excluding any potential cash inflows from a prospective licensing agreement currently under discussion, which could amount to milestone payments of approximately £4.6 million over two years.

This financial update is based on a press release statement from Equipmake Holdings PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.