Charge-point surge heralds UK ‘electric car revolution’
More than 120 planning applications for plug-in stations for EVs have been approved
ChargeUK, which represents the EV industry, said that it had achieved a 35 per cent growth in charging points in 2024, with one point installed every 25 minutes on average. The number of public plug points in the UK has grown from 20,964 in 2020 to 53,865 in 2023 and more than 73,000 by the end of 2024.
Vicky Read, the body’s chief executive, said: “With one in three cars sold in December being fully electric, it’s clear where the future is and that a comprehensive network of charge points across the UK is essential. |
Hi trader465,
Interesting workings out but what you haven't taken into consideration is they are generating cash already. The closer they come to profitability the more cash they will be generating. So the cash they hold will last longer and possibly negate the need to raise new funds !. I don't argue podp but s still a gamble !.
Regards |
To calculate the date when the cash will run dry, we need to divide the available cash by the annual cash burn rate.
Available cash: £44 million
Annual cash burn rate: £15 million
Time until cash runs out = £44 million / £15 million = 2.93 years
2.93 years from 31 December 2024 will be approximately 31 December 2027, with the cash running dry a few months earlier in 2027. |
year ended 31 December 2021 cash GBP96.1m
year ended 31 December 2022 cash GBP74.1m
six months ended 30 June 2023 cash GBP58.8m
year ended 31 December 2023, net cash £48.7m
six months ended 30 June 2024 cash £29.0m
year ended 31 December 2024 cash £14m (guided)
Cash burn 2022-2023 £22m
Cash burn 2023-2024 £25.4m
Cash burn 2024-2025 £14m
With the £14m cash they have, and the £30m credit facility that gives them max £45m liquidity, that may be a bit tight to carry them to expected profitability in 2027. (I think that's when they were due to turn a profit?). |
 valuation metrics:
Price per Share: £0.175
Cash per Share: £0.186
NAV per Share: £0.536
Comparing the current share price to the cash per share and NAV per share:
The price of £0.175 is below the cash per share of £0.186, suggesting that the market is valuing PODP below its available cash. This can indicate that investors are pricing in risks, operational issues, or other factors beyond just cash holdings.
The price is also well below the NAV per share of £0.536, indicating that the stock may be undervalued relative to the company's assets (although this assumes the assets are fully realizable and there aren't hidden liabilities).
Thus, PODP shares appear to be cheap, especially in terms of cash and NAV. However, the negative financial performance (losses, negative EBITDA, and cash flow concerns) could be influencing the valuation. The market may be pricing in risks related to these factors or other concerns such as future profitability or the competition in the electric vehicle (EV) charging industry. |
Can't get any worse (I hope)... |
I'm showing a nice 17% profit here, if the next update shows cash burn slowing then I think we could see a nice rise |
EDF's current stake in Pod Point is valued at approximately £12.8 million.
Loss on Investment:
EDF's estimated investment: £59.4 million
Current value of investment: £12.8 million
Loss in value: £46.6 million
Loss percentage: 78.45%
EDF is down nearly 78.5% on their initial investment in Pod Point. |
Interesting moveI would not of thought that EDF would want their investment to go up in smoke |
1. Financial Performance and Guidance
Revenue
Guidance for Full-Year 2024 Revenue: Approximately £60 million.
This suggests that PodPoint expects a strong second half of 2024, with growth primarily driven by the Home segment and continuing momentum in Energy Flex.
Revenue in H1 2024 was £28.1 million, a decrease of 8.2% compared to H1 2023 (£30.6 million). The decline was driven by a reduction in non-core activities within the UK Commercial segment.
Revenue Breakdown in H1 2024:
Home Segment: £13.2 million (up 6.5% YoY)
UK Commercial: £7.5 million (down 29.9% YoY)
Energy Flex: £0.2 million (up from £0 in H1 2023)
Expect growth in the Home segment to continue, with increased average revenue per install (£815 in H1 2024, up 2% from H1 2023). There’s also momentum in the Energy Flex business, although it's still in its early stages.
Adjusted EBITDA and Losses
Guidance for Adjusted EBITDA Losses: Approximately £14 million for FY 2024.
H1 2024 Adjusted EBITDA Loss: £(8.8) million, compared to £(6.8) million in H1 2023, a 29.4% increase in losses.
The increase in losses is largely due to higher legacy overheads and investments in growth areas like Energy Flex and International expansion. However, the second half is expected to show improvements, especially with the restructuring program set to deliver £6 million in annualized savings.
Loss Before Tax
Guidance for Loss Before Tax (FY 2024): Likely to be £18-19 million.
H1 2024 Loss Before Tax: £(18.7) million, a 43% improvement compared to £(32.8) million in H1 2023.
The reduced loss is partly due to no further non-cash impairments in H1 2024 (as seen in H1 2023) and one-off charges for restructuring.
Cash Position and Cash Burn
Guidance for Year-End Cash: Expecting to end 2024 with £15 million in cash.
Cash at June 30, 2024: £29 million, down from £58.8 million at the same time in 2023, reflecting a £29.8 million decrease.
The company is maintaining a robust liquidity position, with an undrawn £30 million credit facility available to support operations if needed.
The cash burn rate in H1 2024 was significant but appears to have been partly offset by cost-reduction efforts and expected growth in the second half of the year.
2. Operational Highlights
Core Segments
Home Segment:
The Home charging segment returned to growth with revenues up 6.5% in H1 2024 compared to H1 2023. This is a key area of focus, and the growth trend is expected to continue through H2 2024.
PodPoint continues to grow its installed base, with over 242,000 communicating devices installed (up 14% from H1 2023).
The company also achieved higher average revenue per install (£815, up 2% YoY), a positive sign of growing customer value and operational efficiency.
UK Commercial:
This segment experienced a revenue decline of 29.9%, mainly due to the planned exit from non-core activities, as PodPoint focuses on its more profitable core areas.
Despite the overall decline, the company has secured some new contracts (e.g., Rentokil, Speedwell Group, and Avery Dennison Group) and renewed contracts with key clients like Zenith Leasing and TSB.
Energy Flex
Energy Flex has been a focus area for growth in 2024, with the company recording £0.2 million in revenue in H1 2024 from this segment.
Energy Flex is still in its early stages, but strong progress is being made, with a goal to reach £0.3 million in FY 2024 revenue.
Energy Flex is expected to generate recurring revenue as the business scales, with major contracts already signed with EDF and Centrica, which will allow PodPoint to access wholesale energy markets.
International Expansion
PodPoint is on track to launch in two new international markets in 2024, with successful certification and testing now completed for units in Spain and France. This represents a key growth avenue as the company expands beyond the UK.
3. Strategic Focus Areas and Guidance for the Future
Cost Restructuring
PodPoint is executing a restructuring program that has already completed its first two phases, expected to deliver £6 million in annualized savings. This is a critical part of improving operational efficiency and reducing the overall cash burn.
Gross margin in H1 2024 improved to 32% (up 200bps), primarily driven by pricing adjustments, operational efficiencies, and product mix.
Energy Flex & Recurring Revenue
Energy Flex remains a core growth driver for PodPoint, with continued development of its consumer proposition (expected launch by end of 2024).
Energy Flex Capital Markets Event in Q4 2023 demonstrated potential for significant future growth, particularly as more customers adopt PodPoint’s charging solutions integrated with smart grid technologies.
4. Conclusion & Key Takeaways for Full-Year 2024
Revenue for FY 2024 is expected to be £60 million, with growth expected in core segments like Home and Energy Flex.
Adjusted EBITDA losses will likely be around £14 million for the year due to ongoing restructuring and investments in growth areas.
The company is maintaining a healthy liquidity position with £29 million in cash (as of June 30, 2024) and a £30 million credit facility available, though they expect to close 2024 with £15 million in cash.
Cost restructuring and the growth of Energy Flex are key factors for turning the company’s fortunes around, with improvements in operational efficiency and product margins expected to contribute to a more favorable second-half performance.
International expansion into Spain and France positions PodPoint for longer-term growth beyond the UK.
By end of FY 2024, PodPoint’s ability to achieve positive cash flow and further expand its Energy Flex business will be crucial for its longer-term financial stability and growth trajectory. |
"We maintain our guidance on cash, and expect to end 2024 with around £15m of cash and to remain undrawn on our £30m credit facility." |
Good to read but agree though - key to this situation is cash and the cash burn.Market has taken the same view. |
Launch in Spain: Key milestone for international expansion
That’s all well and good but how is the cash position looking? |
Agreed but the purchase was a much larger magnitude and coordinated. Let's see. |
I bought a few after being stopped out last try, will wait for next update end January to decide whether to add or cut and run.
Director buys are irrelevant, they were buying a year ago at 23p and are now down 43%. The money they buy with is shareholders money, recycled as salaries and bonuses
“Andy Palmer, Chief Executive Officer, purchased 103,000 Ordinary shares of the Company at a price of 23.7 pence per Ordinary share” |
They have the undrawn 30 mil credit facility with EDF if they need a buffer. The plan was always to run dry the cash from the IPO to profitability. It's unlikely the PDMR's would have purchased in the market if a fund raise was on the cards. |
They may need more cash soon, we should have a clearer picture after the January trading update
30-6-23 cash £58m
30-06-24 cash £29m |
The CEO and CFO have each purchased 50k worth in the market this morning. PODP could be an easy two year ten bagger considering the current valuation. I'm in for a flutter following this PDMR signal. |
250,000 charge point network milestone passed
Pod Point becomes the first charge point operator in the UK to achieve network scale of a quarter of a million chargepoints
Pod Point Group Holdings PLC, a leading provider of Electric Vehicle ("EV") charging solutions in the UK, is pleased to announce its network of Energy Flex enabled chargepoints has now passed the 250,000 milestone, a unique achievement in the UK market.
Largest UK chargepoint network
Pod Point has the largest chargepoint network in the UK, having now passed a quarter of a million units, focused on the Home and Workplace market segments. The vast majority of the network can participate in Energy Flex without any technology upgrades. This makes Pod Point a significant, scale player in both regional and national markets for Energy Flex.
Participating in the Energy Flex market represents a "win-win-win": consumers are rewarded with cheaper and greener charging; partners reduce costs and avoid capex; and Pod Point generates high value recurring revenues.
Progressing towards one million customers
The Group set an ambition of having one million customers by 2030 as part of its "Powering Up" strategy. With its already significant scale in the UK market, achieving the milestone of 250,000 units is an important step on the journey to one million customers.
Melanie Lane, Chief Executive Officer, said:
"Pod Point has a long-established track record of being a leader in the EV charging market. I'm thrilled that we have achieved another first by becoming the first network to have installed over 250,000 units for customers across the UK. We have achieved this with a Trust Pilot score of 4.4, demonstrating our commitment to excellent customer service.
Our growing network size provides us with significant scale and relevance to the Grid and is an important part of our strategy for unlocking high margin recurring revenues for Pod Point." |
This is what a plane crash looks like.
I don’t see any attempt to turn this around at all.
Time to sell up ? |
As momentum gains traction in the EV market it may be time to reassess the investment case for Podpoint. |
You'd think that with all the cash this lot spent on consultants that the share price would be going up by now. Instead it's dropping like a stonel |
Looks like monthly cash burn driving this to zero. |
Register for streaming realtime charts, analysis tools, and prices.
Hot Features
Premium
