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.
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