Pod Point Group Holdings PLC shares were down on Monday after the company revealed weaker-than-expected results, citing challenges in the private electric vehicle market and a steep decline in cash reserves.

Shares in Pod Point fell 37% to 10.50 pence each in London on Monday afternoon.

The London-based electric vehicle charging network operator expects to post an adjusted earnings before interest, taxes, depreciation, and amortisation loss of around £14 million for 2024, in line with its previous guidance.

The firm anticipates full-year revenue of £53 million, falling short of its £60 million guidance. The company attributed the shortfall to ongoing weakness in the private electric vehicle market, particularly in the new car segment.

Pod Point’s net cash position at the end of 2024 was £5.3 million, well below the forecast of £15 million, due to a shift in its business mix and the implementation of a new enterprise resource planning system that the company says temporarily impacted cash collections.

Pod Point said its operating margins improved during the year, helped by a cost-out programme and higher-than-expected revenue from its Energy Flex division.

However, tough market conditions caused a drop in revenue from home charging points, where customers usually pay upfront. This was worsened by an increase in sales to commercial customers, which led to more outstanding payments owed to the company.

The company plans to draw on a £30 million credit facility provided by majority shareholder EDF Energy Ltd during the first quarter of 2025.

Chief Executive Officer Melanie Lane said: ‘We made good progress on our costs, but the weaker-than-expected private EV market has negatively impacted revenues.

‘EDF remains a very supportive shareholder for us. They have provided resources and expertise to drive our Energy Flex business and we continue to explore international market opportunities with them.

‘I am really pleased with how the team has executed our plan and delivered against our key performance indicators, especially given significant internal reorganisation to set the business for long-term success. I am particularly impressed with the momentum the group has built in our Energy Flex business. We are taking this momentum into 2025.’

Pod Point will release its full-year results for 2024 in April.

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