Proactive Investors - Shares in Pod Point Group Holdings PLC (LON:PODP) plunged over 13% after the provider of charging points for electric cars warned of a slide into the red both this year and next as supply chain problems continue to hit deliveries of electric vehicles (EVs) in the UK.
Growth in the market for Plug-In-vehicles (PIVs) has slowed markedly, from 76% year-on-year in 2021 and 22% in the first half this year to just 7% in the four months to 31 October, Pod Point said, citing figures from the Society of Motor Manufacturers and Traders (SMMT).
These trends indicate the total market for PIVs will be around 350,000 in 2022 and 375,000 in 2023, the company said in a trading update.
The company is now forecasting full-year 2022 revenues of £70mln, up from £61.4mln last year, but at the adjusted EBITDA level it expects to report a loss of £7mln, compared with a profit £58,000 in 2021.
The supply chain problems are expected to continue into next year and the group forecast full-year revenues for 2023 of £85mln-£90mln and a mid-single digital adjusted EBITDA loss.
“We will continue to invest in hardware and software development to drive revenue growth,” Pod Point said, adding that it expects to maintain “a strong balance sheet” and to end 2023 with around £50 million of cash, after investment.
In the longer term, PIV registrations in the UK are expected to return to rapid growth as the supply chain restrictions and general economy recover, it said.
“We fully expect the UK to achieve its goal of banning new internal combustion engine cars by 2030, and hence foresee strong growth in demand for charging infrastructure over the next decade and beyond,” it added.
Shares were down 13.69% at 65.77p in early trade.