TIDMPODP
RNS Number : 9881T
Pod Point Group Holdings PLC
28 July 2022
28 July 2022
Pod Point Group Holdings PLC (Symbol: PODP)
Half-year results for the 6 months ended 30 June 2022
"Excellent H1 with strong execution and market share gains; EV
supply chain creates challenges in H2"
Pod Point Group Holdings plc (the "Company") and its
subsidiaries (the "Group"), one of the UK's market leading
providers of Electric Vehicle ("EV") charging solutions is pleased
to announce its unaudited half-year results for the period ended 30
June 2022.
Financial Summary
6 months 6 months Period on
to 30.06.22 to 30.06.21 period change
GBP'000 GBP'000
Total revenue 41,552 26,497 57%
Home 27,219 16,576 64%
Commercial 12,084 8,659 40%
Other(2) 2,249 1,262 78%
Gross profit 10,388 7,039 48%
Gross margin 25% 27% -2pp
-------------------- --------------- --------------- ---------------
Home gross profit 6,285 4,621 36%
Home gross
margin 23% 28% -5pp
-------------------- --------------- --------------- ---------------
Commercial gross
profit(3) 2,776 1,747 59%
Commercial
gross margin 23% 20% +3pp
-------------------- --------------- --------------- ---------------
Adjusted EBITDA(1) (1,414) 487 (1,901)
EBITDA (3,992) (3,784) (208)
Loss before
tax (7,546) (6,667) (879)
Loss per share
(GBP) (0.05) (0.07) (0.02)
As at 30.06.22 As at 31.12.21
GBP'000 GBP'000
Closing cash
and short term
investments 82,086 96,112 (14,026)
1) See Notes below for definition of Adjusted EBITDA
2) See Notes for definition
Notes
(1) Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortisation and also excluding both amounts
charged to the income statement in respect of the Group's share
based payments arrangements and adjusting for large corporate
transaction and restructuring costs. These have been separately
identified by the Directors and adjusted to provide an underlying
measure of financial performance. The reconciliation is set out on
the income statement and note 5 provides a summary of the amounts
arising from the large corporate transactions and restructuring
costs.
(2) "Other" revenue includes Recurring revenue for H1 2022 of
GBP0.8 million (2021: GBP0.4 million) and Owned Asset revenue for
H1 2022 of GBP1.5 million (2021: GBP0.9 million).
(3) Amounts previously recorded in the Norway segment for H1
2021 have been reclassified into Commercial as described in note
2.
Group Highlights
-- Strong performance with 57% revenue growth to GBP41.6 million compared to H1 2021
-- 48% growth in gross profit to GBP10.4 million with gross
percentage margin decreasing to 25% from 27% in H1 2021
-- The financial impact of additional component costs resulting
from supply chain issues is estimated to be GBP0.9 million,
contributing to the reduction in Home gross margin in H1 2022 of
5pp compared to H1 2021
-- Strong expansion of the customer base across both Home and Commercial segments
-- Increase in headcount to 531 (30 June 2021: 316) including 74
inhouse installers and 103 technology and hardware staff.
Technology and hardware staff have increased from 57 at 30 June
2021 and from 71 at 31 December 2021 as the business deployed
investment funds raised at IPO
-- Adjusted EBITDA loss of GBP1.4 million was a result of
reduced gross margin resulting from additional component costs and
the additional costs of being a listed business. Compared to a
positive H1 2021 adjusted EBITDA of GBP0.5 million
-- Closing cash of GBP82.1 million
Strategic and Operational Highlights
-- 10.6 million charging sessions enabled, supporting 952
million kilometres of low carbon travel and helping to avoid
129,000 tonnes of CO2e in H1 2022
-- Over 45,000 charge points installed and shipped in H1 2022
(H1 2021: 27,554) while maintaining outstanding levels of customer
service with a 4.4 out of 5 rating on Trust Pilot and a 4.6 out of
5 rating on reviews.io with a 91% recommendation rate
-- Market share in home charging(1) increased to 22% in H1 2022
(H1 2021: 17%) driven by new deals with car manufacturers and
operators of business car fleets
-- Total number of units installed and able to communicate at
the period end increased to 175,130 (30 June 2021: 102,370)
providing an excellent base to expand recurring revenue products in
the future
-- Key OEM contract was won with BMW and the business now has 20 contracts with car OEMs
-- Pod Point now has over 160 active fleet business accounts
with businesses including Thames Water, Aldi and Savills all
won
-- In the Commerical segment significant orders were won during
H1 from DHL, Hammerson for the Bullring in Birmingham, Landsec for
Bluewater and Custodian Capital
-- Second manufacturing partner, Celestica, contracted and delivering units from Q2
-- Owned asset sites increased to 500 with 1,109 charging points including 101 DC rapid units
(1) Calculated as number of Home installs divided by new PiV
registrations in the same period
Headline KPIs
6 months 6 months Period on
to 30.06.2022 to 31.06.21 period change
Total UK new
PiV(1) sales 166,512 132,094 26%
Home units
installed 36,576 22,647 62%
Commercial
units installed
and shipped 8,844 4,840 83%
-------------------- --------------- ------------- ---------------
Effective
Home market
share 22% 17% +5pp
Effective
Commercial
market share 5% 4% +1pp
-------------------- --------------- ------------- ---------------
Total Home
units installed
and able to
communicate 156,398 89,195 75%
-------------------- --------------- ------------- ---------------
Total Commercial
units installed
and able to
communicate 18,732 13,175 42%
-------------------- --------------- ------------- ---------------
Average annual GBP41 GBP30 +GBP11
recurring revenue
per unit(2)
Total Owned
Asset sites 500 396 26%
-------------------- --------------- ------------- ---------------
Total Owned
Asset Charge
Points 1,109 853 30%
-------------------- --------------- ------------- ---------------
Total Owned
Asset Rapid/DC
Charge Points 101 61 66%
-------------------- --------------- ------------- ---------------
(1) PiV defined as "Plug-in Vehicles"
(2) Calculated as total recurring revenue divided by number of
commercial units installed and able to communicate
Erik Fairbairn, Chief Executive Officer of Pod Point, said:
" This was a strong first half year performance for Pod Point.
We have continued to make progress towards our goal of travel which
doesn't damage the earth. We installed and sold over 45,000 charge
points (H1 2021: over 27,000), maintained outstanding customer
satisfaction ratings, enabled enough electricity to power 952
million kilometres(1) of electric (H1 2021: 326 million kilometres)
driving through our network and helped to avoid 129,000 tonnes of
CO2e. In addition, our network of installed and able to communicate
units has increased by 71% to 175,130.
Revenues grew by 57% to GBP41.6 million (H1 2021: GBP26.5
million), with our Home segment growing by 64% to GBP27.2 million
and our Commercial segment growing by 40% to GBP12.1 million.
Signing BMW was another great win for the team and we now have
contracts with 20 automotive OEMs.
The backdrop of severe component shortages and extreme cost
inflation exacerbated by the war in Ukraine and the lengthy Covid
lockdowns in China did impact the business, resulting in a negative
impact of GBP0.9 million to gross margin and adjusted EBITDA as we
sourced components to increase charge point production to meet the
needs of our customers. Even with this impact overall gross profit
grew by 48% to GBP10.4 million with headline percentage gross
margin of 25% compared to 27% in 2021. Adjusted EBITDA was a loss
of GBP1.4 million compared to a positive adjusted EBITDA of GBP0.5
million in H1 2021. Loss before tax of GBP7.5 million arose
following share based payment charges, amortisation and
depreciation, and any adjusting transactions (H1 2021: GBP6.7
million).
Our peak Home install month was March with over 8,500 charging
points installed. To deliver this was an amazing achievement by the
Pod Point team as well as our manufacturing and installation
partners. At no point in H1 did we run out of our charging units
and this continuous production was delivered by the limited
re-design of products to match component availability and the spot
buying of components to ensure production targets were met. We
clearly demonstrated the scalability and flexibility of the Pod
Point business model and with the addition of our second
manufacturing partner Celestica we have further enhanced our
ability to scale the business.
Demand for PiVs remains strong. Registrations of new PiVs for
the half year increased 26% to 166,512 from the first half of
2021and PiVs represented 21% of all new vehicles compared to 15% in
the first half of 2021. Overall vehicle sales, however, decreased
by 12% in the same period and in Q2 2022 PiV sales were down 2% on
the same quarter in 2021 with delivery dates for newly ordered
vehicles increasing to over nine months. Whilst it is pleasing to
see improvements in our core market share metrics in the Home and
Commercial segments shortages of new vehicles make it very
difficult to predict PiV registrations for H2 2022; it is clear,
however, that some of the growth we expected this year will be
delayed into 2023 and will impact our H2 results to some
extent.
With demand for electric vehicles remaining strong I firmly
believe the future remains bright for Pod Point and, as electric
vehicles become the norm rather than the exception, the market
opportunity is clear, even with the issues we face across the rest
of this year. Our investment strategy, as set out at IPO hasn't
changed and we will continue to invest in product and our inhouse
teams. We look forward to continuing on our vision to create a
future where travel doesn't damage the earth."
[1] Calculation: Energy transfer (Pod Point Internal Data)
multiplied by average EV efficiency 3.46 m/kWh
(https://ecocostsavings.com/average-electric-car-kwh-per-mile/) and
converted from miles into km (multiply by 1.60934)
Webcast presentation
There will be a webcast presentation for investors and analysts
this morning at 09:00 am. Please contact podpoint@tulchangroup.com
if you would like to attend.
Enquiries:
Tulchan (Public Relations adviser to Pod Point)
James Macey White/ Mark Burgess/ Matt Low/ Laura Marshall /
Arthur Rogers
+44 (0)20 7353 4200 / PodPoint@tulchangroup.com
BofA Securities (Joint Corporate broker)
Peter Luck, Mitchell Evans
+44 (0)20 7628 1000
Numis (Joint Corporate broker)
Andrew Coates
+44 (0)20 7260 1000
About Pod Point Group Holdings plc
Pod Point was founded in 2009 by CEO and entrepreneur Erik
Fairbairn. Driven by a belief that travel shouldn't damage the
earth, Pod Point has installed over 175k charge points and is an
official charge point supplier for major automotive brands.
Pod Point installs a broad range of products from smart domestic
charge points to high power rapid chargers and load balancing
systems. Pod Point works with a broad range of organisations and
customers to offer home and commercial charging solutions with
customers including major retailers, hotels, restaurants and
leisure venues.
Pod Point is trading on the London Stock Exchange under the
ticker symbol "PODP."
For more information, visit
https://investors.pod-point.com/results-and-reports
Chief Executive's Review
It has been a strong H1 for Pod Point, with revenue growing by
57% from H1 2021 to GBP41.6 million and over 45,000 units installed
and shipped in the period, a 65% growth from H1 2021. Our ecosystem
focused business model delivered growth across all business
segments.
Q1 was our most successful quarter ever with GBP23.8 million of
revenues and 22,536 home units installed as the Office for Zero
Emission Vehicle ("OZEV") home grant came to a well-publicised end
on 31 March 2022, and many customers had charging units installed
ahead of the delivery of their PiVs. 8,517 Home units were
installed in March alone.
Q2 revenues were lower at GBP17.8 million with 14,040 home units
installed. This was partly due to customers having installs of
their charge points ahead of the delivery of their vehicles; later
in the quarter, the war in Ukraine combined with ongoing Covid
lockdowns in China have impacted the production and supply of new
PiVs.
At no point during the first half of the year did we run out of
our charging units. This continuous production was delivered by the
limited re-design of products to match component availability and
the spot buying of components to ensure production targets were
met. Whilst we incurred additional cost as a result of the spot
buying, I believe this clearly demonstrated the scalability and
flexibility of our business model.
We contracted a second manufacturing partner, the international
manufacturing company Celestica. They started to deliver units in
Q2 from their Romanian production facility, and can scale and
adjust production levels rapidly. They can also use their
procurement scale to source the best value components for our
charging unit production.
In the Home segment we delivered revenues of GBP27.2 million,
growth of 64%, and units of 36,576 (H1 2021: 22,647), with Q1 being
particularly strong on the back of the end of the OZEV home grant
on 31 March 2022. 88% of units were installed by partners and 12%
by inhouse installers compared to 87% and 13% in H1 2021.
The addition of BMW has increased our contracts with car OEMs to
20. We grew our active domestic fleet accounts to 160, including
Thames Water, Aldi and Savills and re-signed our largest fleet
customer, the NHS, for an additional three years in March. We also
signed a preferred supply, referral agreement with Pendragon
Vehicle Management which operates a 15,000 vehicle fleet.
Our market share in the Home segment (calculated as number of
Home installs divided by new PiV registrations in the same period)
was 22% higher than the 17% in H1 2021. Whilst some of this
increase was due to customers having installs in advance of vehicle
delivery, ahead of the cessation of the grant on 31 March, it was
pleasing to grow our market share.
Home gross margin was GBP6.3 million, an increase of 36% from H1
2021. Percentage gross margin of 23% was lower than the 26%-28% we
had expected. This was mainly due to the additional component costs
discussed above but also due to the mix of customers, with more
customers taking advantage of OEM contracted price discounts as we
focused on these customers in Q1.
In the Commercial segment we delivered revenues of GBP12.1
million, growth of 40% with 8,844 units installed or shipped (H1
2021: 4,840), 83% growth. We had significant new orders from DHL,
Hammerson for the Bull Ring in Birmingham and Custodian Capital. We
reached our 200(th) Lidl store DC rapid installation and ended the
half year operating 242 sites on their behalf.
Our market share in the Commercial segment (calculated as number
of Commercial units installed or shipped divided by new PiV
registrations in the same period) was 5%, higher than 4% in H1
2021. Our unit sales to our wholesale partners were very strong,
helping to increase the volume of units shipped and consequently
increasing our market share.
Commercial gross margin of GBP2.8 million, an increase of 59%,
from H1 2021 was delivered with percentage gross margin of 23%,
slightly higher than the 21% we had expected. This was mainly due
to the mix of customers and installations offsetting the additional
component costs discussed above.
At the end of the half year we had 18,732 commercial units
installed and able to communicate, an increase from 13,175 from 30
June 2021 and 16,005 from 31 December 2021. Currently only
Commercial units generate revenues and these revenues had increased
by 91% to GBP0.8 million from H1 2021. The average recurring
revenue per unit (the KPI we use for these revenues) improved from
GBP30/unit to GBP41/unit as we grew our share of usage revenues,
(where we act as the charge point operator on behalf of the
customer and owner of the charge point units).
During the period we increased the number of Tesco sites where
we have Owned Assets to 500, compared to 396 at 30 June 2021. The
total number of units increased to 1,109, from 853 at 30 June 2021,
with DC rapid units increasing from 61 at 30 June 2021 to 101.
Total gross capital employed increased to GBP5.5 million from
GBP3.9 million at 30 June 2021; this investment helped to increase
revenues to GBP1.5 million from GBP0.8 million in H1 2021. The
majority of this increase was media related revenues but usage
revenue grew to GBP0.4 million as more drivers used the DC rapid
units.
During H1 we took the strategic decision to cease our sales
activity in Norway since charge point design and supporting
technology for the UK and Norway had started to diverge more
markedly than in the past and we wanted to prioritise the hardware
and software development on UK product and activity. Norway
revenues and gross margin were small and are now included in the
Commercial business segment.
We have started to deploy the funds raised at IPO, with the
hardware and software team increasing by 32 staff to 103 staff at
the end of H1. This represented a capitalised investment of GBP2.7
million, compared to GBP1.1 million in H1 2021.
Our strategy and investment plans remain as set out at IPO:
-- We continue to expand our product offering to serve
additional routes to market, such as multi-tenancy dwellings and on
street charging. It is important that the EV revolution does not
leave anybody behind - and both flats and on-street parking are
significant segments with customers that require our products and
services.
-- We remain focused on investment in developing our software
capability to realise a number of recurring revenue business
models. Our charge points are already smart, so we are building
software on top of our network to enable our charging points to
work in harmony with the grid at both a local and national level.
With so many consumers moving to a reliance on electricity for
their driving, as well as potentially for heating, we are going to
see a significant increase in the demand for electricity across the
UK. Amongst other activities, we plan to use our network of charge
points to carefully manage how energy flows into the nation's
electric cars and hence manage load on the grid. We expect to do
this in a way which doesn't inconvenience the EV driver in a
material way. This is going to be a challenge - but as the
country's leading provider of charging solutions, it is our
responsibility to be part of the solution, not part of the
problem.
-- We remain committed to increasing our investment in our owned
charge point assets, such as those at destinations and end-route,
including retail parks and leisure locations. These charge points
will be a mix of AC charge points for those locations with longer
dwell times and DC units capable of rapid charging at speed so
drivers can get on their way quickly. The speed of this investment
will be slower than envisaged at IPO, given the current lead time
on the delivery of DC units, and we expect the 2022 investment to
be limited to additional Tesco sites and some pilot sites. The
Board will also review the phasing and level of investment across
2023 to ensure the business retains a higher level of cash than
previously assumed, given the impact of the current supply chain
issues on the revenue and cash generation of the business and the
increased levels of economic uncertainty.
As we expected, the UK Government has continued to wind back
direct fiscal incentives and to focus on indirect actions such as
the recently implemented changes to planning regulations which
require developers to include charge points in new properties. We
see this as the right strategy and an opportunity for Pod Point.
The Government is also introducing various charging point product
regulations and we are updating our products to ensure they comply
with these new regulations as they are implemented.
The UK has continued to reduce transport carbon emissions and to
improve air quality for everyone as demonstrated by over 166k of
new PiV registered during the 6 months to June 2022 compared to
132k in the 6 months to June 2021, an increase of 26%, representing
21% of new vehicle registrations compared to 15% in the 6 months
2021 with 802k vehicles registered in 2022 compared to 910k in
2021.
In terms of specific sustainability KPIs, in the six months to
30 June 2022 (compared to the six months to 30 June 2021) Pod
Point:
-- Enabled 10.6 million charging sessions (H1 2021: 4.4 million)
-- Helped to avoid 129k tonnes of CO2e (H1 2021: 44k tonnes)
-- Enabled 952 million kilometres of low carbon travel (H1 2021: 326 million kilometres)
-- Enabled 171.0 GWh of electricity to be delivered (H1 2021: 58.9 GWh)
Outlook for H2 2022
We see demand for electric vehicles remaining strong, however
global supply chain challenges are expected to continue through the
rest of 2022 and into 2023. This will impact both supply of new
vehicles and the manufacture of charge points across all suppliers.
As a result, accurate forecasting of the expected number of new PiV
registrations across the rest of the year, as well as the resultant
impact on gross margin, is very difficult. The strong growth in
demand for PiVs together with our improved market share suggests
that whilst the EV infrastructure rollout may be slower than
expected six months ago, Pod Point remains well positioned to
benefit.
We have demonstrated our ability to scale both up and down with
demand for our products. We are focused on ensuring we continue to
have adequate supply of units for our customers and have already
incurred, and expect further, additional component cost
inflation.
The current lead times for DC rapid charging units, which we buy
from third parties, have extended from three months to nine months
due to these companies having their own supply chain issues. These
timeframes do mean that any significant deployment of capital by
the business in its Owned Assets charging points will only start in
2023. It is also likely to be at smaller scale than previously
expected to ensure the business retains an appropriate cash balance
across 2023.
Whilst the current price increases in electricity are an obvious
concern for consumers and businesses we do not expect them to
materially impact sales of electric vehicles, as the ongoing
running costs will still be significantly cheaper than vehicles
reliant on internal combustion engines. The impact of inflation and
the wider economic environment in the UK is obviously significant,
and we will monitor carefully whether we see any material impact on
the demand for and sales of PiVs.
We currently have GBP82 million of cash in hand and expect to
have in excess of GBP70 million at the year end.
Sector Review
In the Home business segment:
-- The Home business segment delivered a strong performance,
with revenue of GBP27.2 million in H1 2022 (H1 2021: GBP16.6
million) an increase of 64%. This was driven by growth in Pod
Point's core market and market share gains.
-- New PiV registrations increased to 166,512 in H1 2022 from
132,094 in H1 2021, an increase of 26% and the number of units
installed increased to 36,576 compared to 22,647 in H1 2021, an
increase of 62%. This led to Pod Point's market share of new PiV
registrations increasing to 22% from 17% in H1 2021.
-- This increase in revenues helped to deliver an increased
gross margin in H1 2022 of GBP6.3 million compared to GBP4.6
million in H1 2021, an increase of 36%.
-- Percentage gross margin in H1 2022 was 23% compared to 28% in
H1 2021, a decrease of 5pp. The financial impact of sourcing
additional components due to supply chain shortages and cost
inflation was GBP0.9 million.
-- A key OEM contract was won with BMW and the business now has
20 contracts with OEMs and over 160 active fleet business accounts
with businesses including Thames Water, Aldi and Savills.
In the Commercial business segment:
-- Strong performance with revenue of GBP12.1 million in H1
2022, compared to GBP8.7 million in H1 2021, an increase of
40%.
-- Number of units installed increased to 2,112 compared to
1,717 in H1 2021 and the number of units sold directly increased to
6,732 compared to 3,123 in H1 2021, representing a total increase
of 83% with Pod Point's market share of new PiV registrations
increasing to 5% from 4% for H1 2021.
-- This increase in revenues helped to deliver an increased
gross margin in H1 2022 of GBP2.8 million compared to GBP1.7
million in H1 2021, an increase of 59%.
-- Percentage gross margin in H1 2022 increased to 23% compared
to 20% in H1 2021. Average revenue per unit decreased to GBP1,356
from GBP1,767 in H1 2022 to a change in the mix of installations
and sales, with higher volumes of wholesale sales and fewer higher
value, but lower margin, installations than in 2021.
-- Significant new orders in H1 included included DHL, Hammerson
for the Bullring in Birmingham, Landsec for Bluewater and Custodian
Capital
In the Recurring Revenue business segment:
-- Good performance, with revenue of GBP0.8 million in H1 2022,
compared to GBP0.4 million in H1 2021, an increase of 91%. Network
revenues increased to GBP0.5 million compared to GBP0.3 million in
H1 2021 and other revenues increased to GBP0.3m compared to GBP0.1
million in H1 2021.
-- This increase in revenues helped to deliver an increased
gross margin in H1 2022 of GBP0.4 million compared to GBP0.2
million in H1 2021, an increase of 169%.
-- Percentage gross margin in H1 2022 increased to 56% compared
to 41% in H1 2021, an increase of 15pp, with the average annual
recurring revenue per unit installed and unit able to communicate
increasing to GBP41 compared to GBP30 in H1 2021.
-- The number of Commercial units installed and able to
communicate at the period end increased to 18,732 compared to
16,005 at the end of 2021 and 13,175 at 30 June 2021. All recurring
revenues in both 2022 and 2021 were derived from these units.
-- The number of Home units installed and able to communicate at
the period end increased to 156,398 compared to 121,415 at the end
of 2021 and 89,195 at 30 June 2021. This growth is strategically
significant as the business seeks to expand its recurring revenue
products across these units.
In the Owned Asset business segment:
-- Strong performance with revenue of GBP1.5 million in H1 2022,
compared to GBP0.9 million in H1 2021, an increase of 72%.
-- The total number of sites installed at the period end
increased to 500 compared to 453 at the end of 2021. The total
number of units installed at the period end increased to 1,109
compared to 984 at the end of 2021, including 101 rapid DC units at
the period end compared to 73 at the end of 2021.
-- This increase in revenues and units helped to deliver an
increased gross margin in H1 2022 of GBP0.9 million compared to
GBP0.5 million in H1 2021, an increase of 76%.
-- Percentage gross margin in H1 2022 increased to 61% compared
to 60% in H1 2021, an increase of 1pp.
-- Gross capital deployed on assets increased to GBP5.5 million
at the end of 30 June 2022 (H1 2021: GBP3.9 million).
Financial Performance
It was a strong performance by the business in the 6 months
ended 30 June 2022 with total revenue of GBP41.6 million (2021:
GBP26.5 million), an increase of 57%, with the biggest growth from
our Home business segment.
This increase in revenues helped to deliver an increased total
gross margin in H1 2022 of GBP10.4 million (2021: GBP7 million) an
increase of 47%.
Total percentage gross margin in H1 2022 decreased to 25% (2021:
GBP27%).
The increase in revenues and resulting gross margin were offset
by the increased operating costs of being a larger business and the
increased costs of being a listed business which resulted in the
business delivering an adjusted EBITDA loss of GBP1.4 million in H1
2022 (H1 2021: positive GBP0.5 million)
Helped by the funds raised at the IPO in November 2021 period
end cash and short term investments were GBP82 million compared to
GBP96.1 million at the end of 2021.
Unadjusted losses after tax increased to GBP7.5 million in H1
2022 (H1 2021: GBP6.7 million). EBITDA losses increased in H1 2022
with losses of GBP4.0 million (H1 2021: GBP3.8 million). There were
increased depreciation and amortisation costs of GBP3.5 million in
H1 2022 (H1 2021: GBP2.3 million) and decreased net financing costs
of GBP77k (H1 2021: GBP0.6 million).
Total administrative expenses as disclosed on the Income
Statement increased to GBP17.9 million in H1 2022 compared to H1
2021 of GBP13.1 million, an increase of 37%. This increase was due
to the growth in the size of the business and the additional staff
required to deliver this growth, the one off and ongoing cost of
being a listed company (including Share Based Payments) and
additional depreciation and amortisation costs as a result of
additional funds being invested in Owned Assets and intangible
asset development. The business continues to increase its support
costs to support the growth, and its requirements as a listed
business and incurred significant one off costs in both periods.
Looking at these individually:
-- Administrative expenses excluding one off large corporate
transaction and restructuring costs, share based payments and
depreciation and amortisation costs increased to GBP11.8 million in
H1 2022 compared to H1 2021 of GBP6.6 million, an increase of 80%.
This increase was due to the growth in the size of the business and
the additional staff required to deliver this growth and the
ongoing costs of being a Listed company.
-- Depreciation and amortisation costs increased in H1 2022 to
GBP3.5 million compared to GBP2.3 million for H1 2021, as a result
of additional funds being invested in Owned Assets and research and
development.
-- Following the listing in November 2021, Pod Point incurred
share based payment charges relating to a number of share awards
which were implemented at or soon after listing resulting in a
charge to the Income Statement of GBP2.6 million for H1 2022 (H1
2021: nil).
-- One-off large corporate transaction and restructuring costs,
relating primarily to the Listing were GBPnil for H1 2022, compared
to GBP4.3 million for H1 2021.
Net finance costs, primarily related to borrowing costs on a
loan to fund owned assets, decreased to GBP0.1 million in H1 2022,
compared to GBP0.6 million in H1 2021 as a result of borrowings
being repaid to Pod Point's pre-listing shareholders in Q4
2021.
Trade and other receivables grew due to growth in the business.
Inventories remained roughly the same and included the costs of
additional component stock acquired. Trade and other payables
reduced from the year end as the remaining IPO costs were paid
during H1 2022.
Closing cash and short term investments were GBP82.1 million (31
December 2021: GBP96.1 million). At 30 June 2022 GBPnil cash had
been placed on a six month bank deposit and so has been classified
as a short term investment (31 December 2021: GBP50 million).
Closing net assets were GBP194.5 million (31 December 2021:
GBP199.8 million).
Cash outflow from operating activities increased in H1 2022 by
GBP3.6 million to GBP8.7 million as compared to H1 2021. This was
primarily due to a larger operating loss, once the non-cash impact
of share-based payments had been taken into account.
Cash flows used in investing activities had inflows of GBP44.3
million in H1 2022 as compared to outflows of GBP3.5 million in H1
2021 primarily due to the redemption of cash invested in short term
deposits which was required to be disclosed separately from cash.
The cash is now invested in shorter term interest deposits so can
be categorised as cash.
Cash inflow from financing activities decreased to GBP0.3
million H1 2022 compared to GBP7.1 million in H1 2021 with new
borrowings of GBP1.3 million in H1 2022 compared to new borrowings
from shareholders to fund the business in H1 2021 of GBP8.1
million.
During H1 2022, transactions with related parties included sale
of goods of GBP43k (2021: GBP245k) purchase of goods of GBP273k
(2021: GBP247k), and interest on intercompany loans of GBPnil
(2021: GBP510k). These transactions were undertaken with the two
shareholders EDF Energy Customers Limited and Legal & General
Capital Investments Limited and their subsidiaries.
Principal Risks and Uncertainties
Effective risk management is essential to the achievement of our
strategic objectives and driving sustainable
business growth. We aim to maintain an appropriate balance
between protecting the company against specific
risks while being able to encourage appropriate and monitored
risk-taking and innovation that allows us to take advantage of
business opportunities.
The Board, as part of its half year processes, considered
reports from management reviewing the principal risks and
uncertainties and how these might evolve during the second half of
2022.
Following this review the Board is satisfied that the Group's
principal risks remain largely unchanged, however there are a few
updates to the list contained in our 2021 Annual Report to bring to
your attention. These are detailed below:
Dependency on the continuing adoption of and demand for EVs: As
recognised earlier in the CEO Report there has been a deceleration
of new PiV registrations as component shortages have restricted
restrict vehicle production and this has resuled in increased
delivery lead times. The result is a delay to EV demand which in
turn creates uncertainty for our H2 forecasts.
Ongoing and potential future disruptions to the global supply
chain: As recognised earlier in the CEO Report, rising component
costs and other supply chain delays and disruption (resulting in
higher costs from spot buying and additional brokerage costs) are
impacting gross margin and EBITDA. As supply chain conditions are
not expected to improve in the short-term and whilst further
disruption remains possible in light of the ongoing conflict in
Ukraine and Covid-19 lockdowns, notwithstanding the mitigating
effects of building resilience in our supply chain during H1, this
remains a key risk being which is being closely monitored for
H2.
No Longer Reliant on a Single Manufacturer : We have now
on-boarded and are increasing production with Celestica, a global
leader in manufacturing and supply chain solutions, to manufacture
some of our AC EV charge point product range. Whilst we continue to
pursue greater resilience and flexibility across our supply chain,
the addition of Celestica together with our incumbent suppliers,
means that our reliance on a single manufacturer has been reduced
and so this risk can now be removed from the list of principal
risks.
Delays to Product Development : Global supply chain challenges
and component cost increases in H1 have required us to direct
product development resources towards limited redesign of our
existing products to facilitate greater component flexibility,
supply chain resilience and protect margins. This has mitigated our
exposure to market-wide supply and production disruption and
enabled us to continue to meet customer demand during some of the
most challenging global macro-economic conditions. The consequence
of this, is that new technology developments and innovation have
been delayed affecting the roll out of new products against our
anticipated roadmap, however, we continue to recruit heavily into
our technology team to build resources and aim to regain some
ground in H2.
In light of the above, our Principal Risks & Uncertainties
have been updated as follows:
1. Dependency on the continuing adoption of and demand for
EVs
2. Competition in the industry and market segment
3. Delays to Product Development
4. Ongoing and potential future disruptions to the global supply
chain
5. Government and regulatory initiatives with unknown
outcomes
6. Health and safety risks related to our products,
installation, maintenance and operation of electrical equipment
7. Potential undetected defects, errors or bugs in hardware or
software
8. Deterioration of economic conditions in the UK, the UK's
economic relationship with the EU and the possibility of a future
health pandemic
9. Disruptions to our network and IT systems
10. Ability to hire and retain management, key, and other
skilled employees
Further details of the Group's principal risks and uncertainties
can be found on pages 45-51 of the 2021 Annual Report, which is
available on https://investors.pod-point.com/
Covid-19
The ongoing Covid-19 pandemic continues to have a significant
impact on many aspects of the global economy, and the duration and
depth of the impacts remain uncertain. During 2021, vehicle
production increased after the various Covid-19 effects of 2020,
however the global supply chain disruptions continued to affect the
availability of semiconductors and therefore the ability of
manufacturers to return production to pre-pandemic levels. This has
continued into H1 2022, exacerbated by Covid-19 related lockdowns
in China. To date, we have managed to ensure manufacturing volumes
have met customer demand, and our Director of Manufacturing and
supply chain team continue to monitor the situation.
We continue to encourage our people to work from wherever suits
them best and provide financial support for this. We also carefully
monitor and assess any Covid-19 related health and safety issues of
our employees and sub-contractor partners in the field.
Director's Responsibilities Statement
We confirm that to the best of our knowledge:
a) The condensed set of financial statements has been prepared
in accordance with IAS 34 "Interim Financial Reporting"
b) The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risk and
uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related party
transactions and changes therein).
By order of the Board
D Surtees
Director
27 July 2022
Independent Review Report to Pod Point Group Holdings Plc
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2022 which comprises the Consolidated
Income Statement, the Consolidated Statement of Financial Position,
the Statement of Changes in Equity, the Consolidated Statement of
Cash Flow and related notes 1 to 18.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2022 is not prepared, in all material respects, in accordance
with United Kingdom adopted International Accounting Standard 34
and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council for use in the
United Kingdom. A review of interim financial information consists
of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK) and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in the Basis of Preparation and General information
section, the annual financial statements of the group will be
prepared in accordance with United Kingdom adopted international
accounting standards. The condensed set of financial statements
included in this half-yearly financial report has been prepared in
accordance with United Kingdom adopted International Accounting
Standard 34, "Interim Financial Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
Conclusion section of this report, nothing has come to our
attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with this ISRE (UK), however future events or conditions
may cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the group's ability to continue as a
going concern, disclosing as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly financial report, we are
responsible for expressing to the group a conclusion on the
condensed set of financial statement in the half-yearly financial
report. Our conclusion, including our Conclusions Relating to Going
Concern, are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of
this report.
Independent Review Report to Pod Point Group Holdings Plc
(continued)
Use of our report
This report is made solely to the company in accordance with
International Standard on Review Engagements (UK) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council. Our work
has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review
report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the
conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, UK
27 July 2022
Basis of Preparation and General Information
The condensed consolidated interim financial statements for Pod
Point Group Holdings Plc (the Company) and its subsidiaries
(together, the Group) have been prepared using accounting policies
consistent with IFRS as adopted by the UK and in accordance with
IAS 34 "Interim Financial Reporting". The information provided in
respect of the year ended 31 December 2021 does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006 but is derived from those accounts. A copy of the statutory
accounts for that year has been delivered to the Registrar of
Companies. The auditor's report on those accounts was not
qualified, did not draw attention to any matters by way of emphasis
and did not contain statements under Section 498(2) or (3) of the
Companies Act 2006.
The condensed consolidated interim financial statements do not
constitute the full financial statements prepared in accordance
with International Financial Reporting Standards (IFRS) and have
been prepared on a going concern basis.
The condensed consolidated interim financial statements was
approved by the Board of directors on 27 July 2022.
Consolidated Income Statement
6 Months
Ended
6 Months
30 June Ended Year ended
2022 30 June 31 December
Notes (unaudited) 2021 2021
----- ------------ --------- ------------
GBP'000 GBP '000 GBP '000
Revenue (including OZEV revenues) 2,3 41,552 26,497 61,415
Cost of sales (31,164) (19,458) (45,070)
------------ --------- ------------
Gross profi t 10,388 7,039 16,345
------------ --------- ------------
Administrative expenses (17,857) (13,084) (29,377)
------------ --------- ------------
Operating loss .......... (7,469) (6,045) (13,032)
Analysed as:
Adjusted EBITDA(1) (1,414) 487 58
Adjusting large corporate
transactions and restructuring
costs(2) 5 - (4,271) (5,739)
Share-based payments 14 (2,578) - (2,422)
EBITDA(1) (3,992) (3,784) (8,103)
Amortisation and depreciation (3,477) (2,261) (4,929)
------------ --------- ------------
Group operating loss (7,469) (6,045) (13,032)
------------ --------- ------------
Finance income 6 75 - -
Finance costs 6 (152) (622) (1,290)
------------ --------- ------------
Loss before tax (7,546) (6,667) (14,322)
Income tax expense - - -
------------ --------- ------------
Loss after tax (7,546) (6,667) (14,322)
------------ --------- ------------
Basic and diluted loss per
ordinary share 15 GBP(0.05) GBP(0.07) GBP(0.13)
Notes:
(1) EBITDA is defined as earnings before interest, tax,
depreciation and amortisation, and is considered by the Directors
to be a key measure of financial performance. Adjusted EBITDA is
defined as earnings before interest, tax, depreciation and
amortisation and excluding both amounts charged to the income
statement in respect of the Group's share based payments
arrangements and also adjusting for large corporate transaction and
restructuring costs. These have been separately identified by the
Directors and adjusted to provide an underlying measure of
financial performance. The reconciliation is set out on the income
statement and note 5 provides a summary of the amounts arising from
the large corporate transactions and restructuring costs.
(2) Transaction costs and other restructuring costs. See note 5.
(3) All amounts relate to continuing activities.
(4) All realised gains and losses are recognised in the
consolidated income statement and there is no other comprehensive
income.
(5) The notes on pages 21 to 31 form part of the Financial Information.
(6) There is no other comprehensive income in the periods
presented and therefore no separate statement of other
comprehensive income is presented.
Consolidated Statement of Financial Position
As at
30 June As at As at
2022 30 June 31 December
Notes (unaudited) 2021 2021
----- -------------------- --------- -------------
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 7 77,639 77,639 77,639
Intangible assets 7 31,440 28,450 29,421
Property, plant and equipment 8 5,009 3,860 4,277
Deferred tax asset 7,309 7,206 7,379
Right of use assets 2,655 1,301 1,400
-------------------- --------- -------------
124,052 118,456 120,116
-------------------- --------- -------------
Current assets
Inventories 9 7,631 4,377 8,214
Trade and other receivables 10 26,381 19,142 24,041
Short-term investments - - 50,000
Cash and cash equivalents 82,086 1,567 46,112
-------------------- --------- -------------
116,098 25,086 128,367
-------------------- --------- -------------
Total assets 240,150 143,542 248,483
Current liabilities
Trade and other payables 11 (30,843) (22,740) (36,173)
Loans and borrowings 12 (1,343) (753) (707)
Lease liabilities.......... (1,212) (643) (896)
Provisions (238) (153) (160)
-------------------- --------- -------------
(33,636) (24,289) (37,936)
-------------------- --------- -------------
Net current assets 82,462 797 90,431
-------------------- --------- -------------
Total assets less current
liabilities 206,514 119,253 210,547
-------------------- --------- -------------
Non-current liabilities
Loans and borrowings 12 (2,657) (18,830) (2,326)
Lease liabilities.......... (1,681) (866) (763)
Deferred tax liability (7,309) (7,206) (7,379)
Provisions (314) (245) (244)
-------------------- --------- -------------
(11,961) (27,147) (10,712)
-------------------- --------- -------------
Total liabilities (45,597) (51,436) (48,648)
-------------------- --------- -------------
Net assets 194,553 92,106 199,835
==================== ========= =============
Equity
Share capital 13 154 - 154
Share premium 140,045 26,400 140,057
Other reserves 4,540 - 2,264
ESOP reserve (1,318) - (1,318)
Retained earnings 51,132 65,706 58,678
-------------------- --------- -------------
194,553 92,106 199,835
==================== ========= =============
Consolidated Statement of Changes in Equity
Share Share Other Retained Total
Capital Premium Reserves ESOP Reserve earnings equity
-------- -------- --------- ------------ --------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1 January
2021 - 26,400 - - 72,373 98,773
Loss after tax for
the period - - - - (6,667) (6,667)
-------- -------- --------- ------------ --------- -------
Balance As at 30 June
2021 - 26,400 - - 65,706 92,106
======== ======== ========= ============ ========= =======
Waived intercompany
loan - - - - 627 627
Loss after tax for
the period - - - - (7,655) (7,655)
Issue of shares during
the year 153 112,340 - - - 112,493
Issue of shares pursuant
to the share incentive
plan 1 1,317 - (1,318) - -
Share based payments - - 2,264 - - 2,264
-------- -------- --------- ------------ --------- -------
Balance As at 31 December
2021 154 140,057 2,264 (1,318) 58,678 199,835
======== ======== ========= ============ ========= =======
Loss after tax - - - - (7,546) (7,546)
Share issuance costs
finalisation - (12) - - - (12)
Share based payments - - 2,276 - - 2,276
-------- -------- --------- ------------ --------- -------
Balance As at 30
June 2022 154 140,045 4,540 (1,318) 51,132 194,553
======== ======== ========= ============ ========= =======
Consolidated Statement of Cash Flow
6 Months Ended
6 Months
30 June Ended
2022 30 June Year ended
31 December
Notes (unaudited) 2021 2021
----- -------------- --------- ------------
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Operating loss (7,469) (6,045) (13,032)
Adjustment for non-cash
items:
Amortisation of intangible
assets 7 2,466 1,695 3,670
Depreciation of tangible
assets 8 534 302 650
Depreciation of right of
use assets 477 264 609
Loss on disposal of assets 8 4 - -
Share based payment charges 14 2,276 - 2,422
-------------- --------- ------------
(1,712) (3,784) (5,681)
Changes in working capital
(Increase)/Decrease in inventories 583 1,244 (2,592)
(Increase) in trade and
other receivables (2,340) (4,825) (9,724)
Increase/(Decrease) in trade
and other payables (5,330) 2,260 15,693
Increase/(Decrease) in provisions 148 82 88
-------------- --------- ------------
(6,939) (1,239) 3,465
-------------- --------- ------------
Net cash flow (used in)
operating activities (8,651) (5,023) (2,216)
Cash flows from investing
activities
Purchase of tangible assets 8 (1,270) (1,827) (2,625)
Cost of of intangible assets 7 (4,485) (1,652) (4,565)
Redemption of/(cash invested
in) short-term investments 50,000 - (50,000)
Interest received 75 - -
-------------- --------- ------------
Net cash flow generated
from/(used in) investing
activities 44,320 (3,479) (57,190)
Cash flows from financing
activities
Shares issued - - 120,074
Issuance cost of shares - - (7,664)
Proceeds from new borrowings 12 1,317 8,075 1,477
Loan/bond repayment 12 (351) (26) (9,346)
Payment of principal of
lease liabilities (509) (303) (648)
Payment of lease interest (76) (50) (118)
Other Interest paid (76) (570) (1,200)
-------------- --------- ------------
Net cash flows generated
by financing activities 305 7,126 102,575
Net increase/(decrease)
in cash and cash equivalents 35,974 (1,376) 43,169
Cash and cash equivalents
at beginning of the period 46,112 2,943 2,943
Closing cash and cash equivalents 82,086 1,567 46,112
============== ========= ============
Please note that GBPnil cash was held in a short term deposit
account at 30 June 2022 (31 December 2021: GBP50 million, 30 June
2021: GBPnil) which for reporting purposes is shown as an
investment above.
Consolidated Notes to the financial statements
1. General information
Pod Point Group Holdings plc (referred to as the "Company") is a
public limited company incorporated in the United Kingdom under the
Companies Act 2006, registered in England. Its registration number
is 12431376. The registered address is 28-42 Banner Street, London
EC1Y 8QE.
The principal activity of the Company and its subsidiary
undertakings (the "Group") during the periods presented is that of
development and supply of equipment and systems for recharging
electric vehicles. The entire issued share capital of the Company
was admitted to trading on the Main Market of the London Stock
Exchange on 9 November 2021. All figures presented in this
unaudited half-year announcement are in GBP sterling.
The Directors have made enquiries and reviewed cash flow
forecasts and available facilities for at least the next 12 months
(including subsequent events). Taking these into account the
Directors have formed a judgement, at the time of approving the
unaudited half-year announcement, that there is a reasonable
expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future. This judgement
has been formed taking into account the principal risks and
uncertainties that the Company faces.
2. Segment reporting
The Group has four operating and reportable segments which are
considered:
Reportable Segment Operations
---------------------------------------------- -------------------------------------------------
Home.......................................... Activities generated by the sale of charging
units to domestic customers for installation
in homes.
Commercial............................... Activities generated by the sale and installation
of charging units in commercial settings,
such as the destination, workplace and en-route
routes to market.
Owned Assets............................ Operating activities relating to customer
contracts, in which Pod Point owns the charging
point assets but charges a fee for provision
of media screens on the units for advertising
purposes, and charges end customers for the
use of these assets.
Recurring.................................... Operating activities relating to the recurring
revenue generated on charging units, relating
to fees charged from the ongoing use of the
Pod Point software and information generated
from the management information system.
There are no transactions with a single external customer
amounting to 10 per cent. or more of the Group's revenues.
Work, destination and en-route revenues are routes to market
within the UK Commercial segment, rather than individual business
segments with the types of installations being similar in all
three.
Revenue has been further split into OZEV and non-OZEV revenues
for each segment. OZEV revenues are the portion of revenue
generated from an install, which are claimed from the DVLA by the
Group on behalf of customers who are eligible for the EVHS
government grant.
The following amounts previously recorded in the Norway segment
for the 6 and 12 month periods ending 30 June and 31 December 2021
have been reclassified into Commercial for both periods
presented.
6 months ended Year ended
30 June 2021 31 December 2021
-------------- -----------------
GBP'000 GBP'000
-------------- -----------------
Norway Revenue 109 281
Norway Cost of sales (196) (411)
-------------- -----------------
Gross Margin (87) (130)
-------------- -----------------
2. Segment reporting (continued)
A breakdown of revenues and non-current assets by geographical
area is included in note 3. Assets and liabilities are not reviewed
on a segmental basis and therefore have not been included in this
disclosure.
Commentry on seasonality considerations on the business in the
current six months compared to the rest of the current financial
year are provided in the commentary in the Chief Executive's Review
section above.
Segmental Analysis for the 6 months ended 30 June 2022
(unaudited):
UK UK Owned Total
Home Commercial Assets Recurring Group
-------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ------- --------- --------
Revenue,
non-OZEV 20,817 11,728 1,489 760 34,794
-------- ----------- ------- --------- --------
OZEV revenue 6,402 356 - - 6,758
-------- ----------- ------- --------- --------
Revenue 27,219 12,084 1,489 760 41,552
Cost of
sales (20,934) (9,308) (587) (335) (31,164)
-------- ----------- ------- --------- --------
Gross Margin 6,285 2,776 902 425 10,388
-------- ----------- ------- --------- --------
Administrative
Expenses (17,857)
-------- ----------- ------- --------- --------
Operating
Loss (7,469)
-------- ----------- ------- --------- --------
Finance
income 75
-------- ----------- ------- --------- --------
Finance
costs (152)
-------- ----------- ------- --------- --------
Loss before
tax (7,546)
-------- ----------- ------- --------- --------
Segmental Analysis for the 6 months ended 30 June 2021:
Owned Total
Home Commercial Assets Recurring Group
-------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ------- --------- --------
Revenue,
non-OZEV 8,792 8,315 864 398 18,369
-------- ----------- ------- --------- --------
OZEV revenue 7,784 344 - - 8,128
-------- ----------- ------- --------- --------
Revenue 16,576 8,659 864 398 26,497
Cost of
sales (11,955) (6,912) (351) (240) (19,458)
-------- ----------- ------- --------- --------
Gross Margin 4,621 1,747 513 158 7,039
-------- ----------- ------- --------- --------
Administrative
Expenses (13,084)
-------- ----------- ------- --------- --------
Operating
Loss (6,045)
-------- ----------- ------- --------- --------
Finance
income -
-------- ----------- ------- --------- --------
Finance
costs (622)
-------- ----------- ------- --------- --------
Loss before
tax........................... (6,667)
-------- ----------- ------- --------- --------
2. Segment reporting (continued)
Segmental Analysis for the year ended 31 December 2021:
Owned Total
Home Commercial Assets Recurring Group
-------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ------- --------- --------
Revenue,
non-OZEV 24,729 17,519 2,033 918 45,199
-------- ----------- ------- --------- --------
OZEV revenue 15,543 673 - - 16,216
-------- ----------- ------- --------- --------
Revenue 40,272 18,192 2,033 918 61,415
Cost of sales (28,925) (14,474) (1,165) (506) (45,070)
-------- ----------- ------- --------- --------
Gross Margin 11,347 3,718 868 412 16,345
-------- ----------- ------- --------- --------
Administrative
Expenses (29,377)
-------- ----------- ------- --------- --------
Operating
Loss (13,032)
-------- ----------- ------- --------- --------
Finance income -
-------- ----------- ------- --------- --------
Finance costs (1,290)
-------- ----------- ------- --------- --------
Loss before
tax........................... (14,322)
-------- ----------- ------- --------- --------
3. Revenue and non-current assets
Revenue, analysed geographically between markets, was as
follows:
6 Months
Ended
6 Months
30 June Ended Year Ended
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- -------------
GBP'000 GBP'000 GBP'000
United Kingdom 41,463 26,389 61,182
Norway 89 108 233
------------ --------- -------------
41,552 26,497 61,415
============ ========= =============
Revenue, split between OZEV revenues and non-OZEV revenues was
as follows:
6 Months
Ended
6 Months
30 June Ended Year Ended
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- -------------
GBP'000 GBP'000 GBP'000
Non-OZEV revenue 34,794 18,369 45,199
OZEV revenue 6,758 8,128 16,216
------------ --------- -------------
41,552 26,497 61,415
============ ========= =============
All OZEV revenue was earned in the UK. Non-current assets are
all held within the UK for all periods presented
4. Directors and employees
The table below presents the staff costs of these persons,
including those in respect of the Directors, recognised in the
income statement.
6 Months
Ended
6 Months
30 June Ended Year Ended
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- -------------
GBP'000 GBP'000 GBP'000
Wages and salaries 9,602 6,347 17,419
Social security costs 1,086 1,186 2,115
Costs of defined contribution scheme 660 205 416
Net share based payment expense 2,275 - 2,422
------------ --------- -------------
13,623 7,738 22,372
============ ========= =============
Staff costs presented in this note reflect the total wage, tax
and pension cost relating to employees of the Group. These costs
are allocated between administrative expenses, cost of sales or
capitalised where appropriate as part of Software Development
intangible assets. The allocation between these areas is dependent
on the area of business the employee works in and the activities
they have undertaken.
During the 6 months ended 30 June 2022, GBP2,752k of staff costs
were capitalised (6 months ended 2021: GBP1,142k year ended 31
December 2021: GBP2,904k).
5 . Adjusting large corporate transaction and restructuring costs
Adjusting large corporate transaction and restructuring costs,
for the purposes of presenting non-IFRS measure of adjusted EBITDA
are as follows:
6 Months
Ended
6 Months
30 June Ended Year Ended
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- -------------
GBP'000 GBP'000 GBP'000
Costs related to raising finance and other
corporate projects - 3,024 5,536
Costs related to acquisition - 1,044 -
Restructuring costs - 203 203
------------ --------- -------------
- 4,271 5,739
============ ========= =============
Raising finance relates to equity financing which given its
scale in the period is not considered to be in the normal course of
the operating business.
Costs related to acquisition include national insurance related
to the exercise of the share options, completion bonus payments to
staff and retention bonus awards.
Restructuring costs are staff related costs arising from changes
to the senior management team and department reorganisations that
were not in the normal course of the operating business.
6. Finance income and finance costs
Net financing costs comprise bank interest income and interest
expense on borrowings, and interest expense on lease
liabilities.
6 Months
Ended
6 Months
30 June Ended Year Ended
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- --------------
GBP'000 GBP'000 GBP'000
Interest on bank deposits 75 - -
------------ --------- --------------
Finance Income 75 - -
------------ --------- --------------
Interest on loans and bonds 92 572 1,172
Interest on lease liabilities 60 50 118
------------ --------- --------------
Finance Costs 152 622 1,290
------------ --------- --------------
Net finance costs recognised in the income
statement 77 622 1,290
============ ========= ==============
7. Intangible assets
Intangible assets as at 30 June 2022 (unaudited):
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 10,800 13,940 13,371 77,639 115,750
Additions 4,485 - - - 4,485
At 30 June 2022 15,285 13,940 13,371 77,639 120,235
----------- ------- -------------- -------- -------
Accumulated amortisation:
At 1 January 2022 5,646 1,336 1,708 - 8,690
Amortisation 1,671 349 446 - 2,466
At 30 June 2022 7,317 1,685 2,154 - 11,156
----------- ------- -------------- -------- -------
Carrying amounts:
At 30 June 2022 7,968 12,255 11,217 77,639 109,079
=========== ======= ============== ======== =======
Intangible assets as at 30 June 2021:
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2021..................... 6,235 13,940 13,371 77,639 111,185
Additions...................................... 1,619 - - - 1,619
At 30 June 2021......................... 7,854 13,940 13,371 77,639 112,804
----------- ------- -------------- -------- -------
Accumulated amortisation:
At 1 January 2021..................... 3,564 639 817 - 5,020
Amortisation............................... 900 349 446 - 1,695
At 30 June 2021......................... 4,464 988 1,263 - 6,715
----------- ------- -------------- -------- -------
Carrying amounts:
At 30 June 2021......................... 3,390 12,952 12,108 77,639 106,089
=========== ======= ============== ======== =======
7. Intangible assets (continued)
Intangible assets as at 31 December 2021:
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2021 6,235 13,940 13,371 77,639 111,185
Additions 4,565 - - - 4,565
At 31 December 2021 10,800 13,940 13,371 77,639 115,750
----------- ------- -------------- -------- -------
Accumulated amortisation:
At 1 January 2021 3,564 639 817 - 5,020
Amortisation 2,082 697 891 - 3,670
At 31 December 2021 5,646 1,336 1,708 - 8,690
----------- ------- -------------- -------- -------
Carrying amounts:
At 31 December 2021 5,154 12,604 11,663 77,639 107,060
=========== ======= ============== ======== =======
8. Property, Plant and Equipment
Property Plant and Equipment as at 30 June 2022 (unaudited):
Other Property,
Plant and Owned
Equipment Assets Total
--------------- ------- -------
GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 1,116 4,698 5,814
Additions 395 875 1,270
Disposals - (7) (7)
--------------- ------- -------
At 30 June 2022 1,511 5,566 7,077
--------------- ------- -------
Accumulated depreciation:
At 1 January 2022 756 781 1,537
Depreciation 154 380 534
Disposals - (3) (3)
--------------- ------- -------
At 30 June 2022 910 1,158 2,068
--------------- ------- -------
Carrying amounts:
At 30 June 2022 601 4,408 5,009
=============== ======= =======
8. Property, Plant and Equipment (continued)
Property, Plant and Equipment as of 30 June 2021:
Other Property,
Plant and Owned
Equipment Assets Total
--------------- ------- -------
GBP'000 GBP'000
Cost:
At 1 January 2021 825 2,364 3,189
Additions 165 1,695 1,860
--------------- ------- -------
At 30 June 2021 990 4,059 5,049
--------------- ------- -------
Accumulated depreciation:
At 1 January 2021 639 248 887
Depreciation 59 243 302
--------------- ------- -------
At 31 June 2021 698 491 1,189
--------------- ------- -------
Carrying amounts:
At 30 June 2021 292 3,568 3,860
=============== ======= =======
Property, Plant and Equipment as of 31 December 2021:
Other Property,
Plant and Owned
Equipment Assets Total
--------------- ------- -------
GBP'000 GBP'000
Cost:
At 1 January 2021 825 2,364 3,189
Additions 291 2,334 2,625
--------------- ------- -------
At 31 December 2021 1,116 4,698 5,814
--------------- ------- -------
Accumulated depreciation:
At 1 January 2021 639 248 887
Depreciation 117 533 650
--------------- ------- -------
At 31 December 2021 756 781 1,537
--------------- ------- -------
Carrying amounts:
At 31 December 2021 360 3,917 4,277
=============== ======= =======
9. Inventories
As at
30 June As at As at
2022 30 June 31 December
(unaudited) 2021 2021
------------ -------- -------------
GBP'000 GBP'000 GBP'000
Finished goods 5,127 3,444 4,962
Work in progress 2,504 951 3,252
------------ -------- -------------
7,631 4,396 8,214
============ ======== =============
The cost of inventories recognised as an expense during the 6
months ended 30 June 2022 in respect of continuing operations was
GBP15,836k (6 months ended 30 June 2021: GBP11,161k year ended 31
December 2021: GBP24,554k). An impairment loss of GBPnil was
recognised in cost of sales against stock during the 6 months ended
30 June 2022 due to slow-moving and obsolete stock (6 months ended
30 June 2021: GBPnil, year ended 31 December 2021: GBP229k).
10. Trade and other receivables
As at
30 June As at As at
2022 30 June 31 December
(unaudited) 2021 2021
------------ -------- -------------
GBP'000 GBP'000 GBP'000
Trade receivables 17,691 16,931 18,795
Loss allowance (369) (396) (216)
------------ -------- -------------
17,322 16,535 18,579
------------ -------- -------------
Other receivables 447 275 338
Prepayments and accrued income 8,612 2,333 5,124
------------ -------- -------------
26,381 19,142 24,041
============ ======== =============
11. Trade and other payables
As at
30 June As at As at
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- -------------
GBP'000 GBP'000 GBP'000
Trade payables 7,099 8,076 12,110
Other taxation and social security 2,212 1,069 1,020
Accruals and deferred revenue 20,012 11,963 20,568
Contingent consideration - 1,000 1,000
Other payables 1,520 632 1,475
------------ --------- -------------
30,843 22,740 36,173
============ ========= =============
There is no material difference between the carrying value and
fair value of trade and other payables presented.
The contingent consideration of GBP1,000k relates to a warranty
retention liability which was set up on the acquisition of Pod
Point Holding Ltd by the Company in February 2020. No warranty
claims have been made against the shareholders of Pod Point Holding
Limited and the amount was repaid to shareholders of Pod Point
Holding Limited on 11 February 2022.
12. Loans and borrowings
As at
30 June As at As at
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- -------------
GBP'000 GBP'000 GBP'000
Current liabilities
Intercompany loan - 630 -
Secured bank loan 1,343 116 707
Bond - 7 -
------------ --------- -------------
1,343 753 707
============ ========= =============
Non-current liabilities
Intercompany loan - 15,460 -
Secured bank loan 2,657 3,159 2,326
Bond - 211 -
------------ --------- -------------
2,657 18,830 2,326
============ ========= =============
12. Loans and borrowings (continued)
During the 11 months ended 31 December 2020, the Group entered
into GBP3.5 million facility agreement with Triodos Bank UK
Limited, to fund charging units owned by the Group and installed at
customer sites. The facility is structured as construction facility
while the assets are being installed, at which point the
outstanding balance will become an operating facility. The interest
rate is fixed at 3.5 per cent. The loan is repayable in eighteen
quarterly instalments starting one quarter after the start of the
operating facility.
An additional loan was entered into with Triodos Bank UK Limited
during the 6 months ended 30 June 2022, for GBP1.25 million under
the same facility agreement. The interest rate is fixed at 4.969
per cent. The loan is repayable in eighteen quarterly installments
starting from the first payment date.
As at 30 June 2021, the Group held intercompany loans with
parent companies EECL and LGCIL under a revolving credit facility.
The entire loan balance was repaid in November 2021.
As of 30 June 2021, the Group held an additional intercompany
loan with parent company EECL of GBP630k. On 6 October 2021 EECL
waived a loan of GBP630k owed by the Group resulting in a
corresponding increase to retained earnings at that date.
13. Capital and reserves
The share capital in issue at each period and period end is as
follows:
As at 30 June
2022 As at 30 June As at 31 December
(unaudited) 2021 2021
-------------------- --------------- --------------------
Number GBP'000 Number GBP'000 Number GBP'000
Allotted, called up and
fully paid:
Ordinary shares of GBP0.001
each 153,403,537 153 13,118 - 153,403,537 153
On 10 December 2021, 549,000 shares were issued and allotted
pursuant to the Share Incentive Plan, bringing the total issued
share capital to 153,952,537.
IPO Reorganisation
As at 31 December 2020, the issued share capital of the Company
comprised 13,118 ordinary shares of GBP.0001 each. In connection
with admission, the Company reorganised its share capital as
follows:
-- On 20 October 2021, the Company issued 999,986,882 bonus
shares of GBP0.0001 each, resulting in a share capital of
GBP100,000, divided into 1,000,000,000 ordinary shares of GBP0.0001
each. Subsequently on 20 October 2021, the Company undertook a
consolidation of its share capital on a 10:1 basis, resulting in a
share capital of GBP100,000, divided into 100,000,000 ordinary
shares of GBP0.001 each. This resulted in a reduction of share
premium of GBP100,000.
-- On 9 November, 2021, Pod Point Group Holdings PLC issued
53,403,357 ordinary shares as part of the Initial Public Offering
in exchange for cash of GBP117,940,367, represented by share
capital of GBP53,403 and share premium of GBP112,229,304.
Immediately following Admission, the issued share capital of the
Company was GBP153,404, comprising of 153,403,537 shares of
GBP0.001 each.
Issuance costs of GBP7,664k were recognised against share
premium in accordance with the Companies Act 2006, section 610.
Share premium
The share premium reserve reflects the excess over nominal value
arising on the issue of ordinary shares. During 2021 as part of the
plans to acquire a 100% stake in Pod Point Holding Limited 13,118
shares with a nominal value of GBP0.0001 per share were issued to
EECL and LGCIL. A share premium reserve arose of GBP26.4 million.
See IPO reorganisation note above for effects on share premium as a
result of the Initial Public Offering in November 2021.
13. Capital and reserves (continued)
ESOP Reserve
The ESOP reserve represents the value associated with the shares
issued pursuant to the employee Share Incentive Plan.
Other Reserves
Other reserves includes the share based payment charge on share
options issued to employees as detailed in note 14.
Accumulated losses
Accumulated losses reserve represents the accumulated losses of
the Group generated through business activities.
14. Share based payments
Charge to the income statement:
The charge to the income statement is set out below:
6 Months
Ended
6 Months
30 June Ended Year Ended
2022 30 June 31 December
(unaudited) 2021 2021
------------ --------- -------------
GBP'000 GBP'000 GBP'000
IPO Restricted Share Award 1,457 - 2,256
IPO Performance Share Award 468 - 136
Long-term incentive plan 474 - -
SIP 179 - 30
------------ --------- -------------
2,578 - 2,422
============ ========= =============
15. (Loss) per share
Basic earnings per share is calculated by dividing the loss
attributable to the equity holders of the Group by the weighted
average number of shares in issue during the period.
The group has dilutive ordinary shares for the 6 months ended 30
June 2022 and 30 June 2021, these being share options granted to
employees. As the Group has incurred a loss in all periods, the
diluted loss per share is the same as the basic earnings per share
as the loss has an anti-dilutive effect.
6 Months
Ended
6 Months
30 June Ended Year Ended
2022 30 June 31 December
(unaudited) 2021 2021
------------ ----------- -------------
Loss for the period attributable to equity
holders (GBP) 7,546,564 6,667,154 14,322,377
Basic and diluted weighted average number
of shares in issue 153,403,537 100,000,000 107,608,175
Earnings/(Loss) per share (Basic and Diluted) (0.05) (0.07) (0.13)
In determining the share numbers and earnings per share
calculation above the requirements of IAS 33 'Earnings per share'
have been applied to reflect the bonus issue and share
consolidation detailed in Note 13 as if it had taken place at the
start of the earliest period for which an earnings per share is
presented.
16. Related parties
Transactions with Shareholders
For the 6 months ended 30 June 2021, the immediate parent
companies of the Group were EDF Energy Customers Limited , owning
77.5% and Legal & General Capital Investments Limited , owning
22.5%. As at 30 June 2022, EDF Energy Customers owned 53.85% and
Legal & General Capital Investments Limited owned 14.64%
During the 6 months ended 30 June 2022, the Group had the
following transactions with group companies part of the EDF Group
(unaudited). The Group had no transactions with Legal & General
Capital Investments Limited during this period.
Sales of Purchase
Group Company goods of goods
---------------------------- -------- ---------
EDF Energy Limited GBP43k -
EDF Energy Customers Limited - GBP273k
During the 6 months ended 30 June 2021, the Group had the
following transactions group companies part of the EDF Group and
Legal & General group:
Interest
and fees
on
Sales of Purchase intercompany
Group Company goods of goods loan
---------------------------- -------- --------- -------------
Legal & General group GBP27k - GBP114k
EDF Energy Limited GBP57k - -
EDF Energy Customers Limited - GBP247k GBP397k
During the year ended 31 December 2021, the Group had the
following transactions group companies part of the EDF Group and
Legal & General group:
Interest
and fees
on
Sales of Purchase intercompany
Group Company goods of goods loan
---------------------------- -------- --------- -------------
Legal & General group GBP46k - GBP232k
EDF Energy Limited GBP263k - -
EDF Energy Customers Limited - GBP850k GBP806k
Transactions with related parties who are not members of the
Group
During the period ended 30 June 2022, the Group had the
following transactions with a related party who is not a member of
the Group. Imtech Inviron Limited is a related party by virtue of
their ultimate parent and controlling party being Électricité de
France S.A.:
-- Sale of goods of GBP112k (6 months ended 30 June 2021:
GBP162k, year ended 31 December 2021: GBP48k)
17. Post balance sheet events
There are no post balance sheet events.
18. Ultimate parent undertaking and controlling party
The immediate parent company of the Company and its subsidiaries
is EDF Energy Customers Limited , a company registered in the
United Kingdom.
The immediate parent company of EDF Energy Customers Limited is
EDF Energy Limited, a company registered in the United Kingdom.
Électricité de France SA, a company incorporated in France, is
regarded by the Directors as the Company's ultimate parent company
and controlling party for which consolidated financial statements
are prepared for at 31 December 2021. This is the largest group for
which consolidated financial statements are prepared. Copies of
that company's consolidated financial statements may be obtained
from the registered office at Électricité de France SA, 22-30
Avenue de Wagram, 75382, Paris, Cedex 08, France.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BLGDRRXDDGDR
(END) Dow Jones Newswires
July 28, 2022 02:00 ET (06:00 GMT)
Pod Point (LSE:PODP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pod Point (LSE:PODP)
Historical Stock Chart
From Jul 2023 to Jul 2024
