Pod Point Group Holdings PLC (GB:PODP) missed its 2024 revenue target due to weakening EV (electric vehicle) demand in the UK market. As a result, the company expects annual revenues to be around £53 million, against its guidance of £60 million. Looking ahead to 2025, the company’s results are expected to fall short of market expectations due to continued uncertainties in the EV sector.
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Pod Point provides EV solutions tailored for homes, workplaces, and commercial organizations in the UK. The company is majority-owned by EDF and has shareholders including Legal & General (GB:LGEN), Schroders (GB:SDR), and Hargreaves Lansdown (GB:HL).
Pod Point Reveals 2024 Performance
Pod Point stated that the adjusted EBITDA loss for 2024 is expected to align with the guidance of approximately £14 million. Moreover, the company’s net cash was £5.3 million by December, falling short of the expected £15 million due to changes in the business mix and the new ERP system.
Turning to its achievements during the year, the company highlighted its progress on the cost front. As part of its cost-out initiative, the company achieved £6 million in annualized cost savings and implemented ROI (return on investment) disciplines across its operations.
Weak EV Demand Raises Investor Concerns
Pod Point’s grim outlook, driven by disappointing EV demand, sparked investor concerns about the sector. Following the update, PODP stock fell by more than 35% on Monday. According to the SMMT (Society of Motor Manufacturers and Traders) analysis, sales among private buyers have been relatively weak compared to businesses. Notably, only one in 10 private buyers in the UK have opted for an EV in 2024.
In terms of its outlook, the company further noted that a government consultation on UK EV sales targets, launched late last year, has added uncertainty. This followed carmaker complaints about slow EV sales, which may not meet targets.
In the last 6 months, Pod Point shares have fallen by almost 50%.
