Today’s trading update from Saietta Group PLC (AIM:SED) offered an insight into the operational streamlining underway at the electric vehicle drivetrain specialist.
The AIM-listed group is narrowing its focus on its core target market of lightweight electric vehicles (LEVs), which, quoting executive chairman Anthony Gott, “offers the biggest, nearest and most certain commercial opportunities”.
Financial results for the year ending 31 March 2023 reflected this strategy.
Saietta increased its turnover (comprising sales and grant income) by 40% yearly to £6 million for a gross profit of £2.3 million.
Underlying losses clocked in at £9.9 million, up from £4.4 million, though this excludes a £6.4 million hit from discontinued activities.
Losses before tax more than doubled to £23.8 million due to write-downs associated with discontinuing its Retromotion activities. Retromotion is a technology that retrofits diesel buses with battery-powered systems.
Saietta’s post-period cash position as of 31 August was £1.2 million, which the board said “provides the company with sufficient funding to meet its current requirements for its focused AFT eDrive production plan”.
The AFT eDrive is in series production at Saietta's UK manufacturing hub in Sunderland for North American and European customers through initial launch customer AYRO.
AYRO has placed an order for 3,000 eDrives.
Gott commented that "Saietta has reached the point of inflection as we expect to go into series production at our manufacturing plants in Sunderland, UK and at our all-new facility in Delhi, India.
”We have therefore restructured our operations in the heavy-duty eDrive and marine divisions, reducing expenditure and allowing all resources and management time to be allocated into products for LEVs. I see strong evidence that Saietta is placed to succeed in securing a large market segment and generate meaningful long-term recurring revenue streams.”