Saietta Group PLC (AIM:SED) said the outlook for the business was highly positive after a “transitional” 12 months that have seen the electric drivetrain specialist hit several significant commercial and operational goals.
Since its IPO 15 months ago, it has evolved from a research and development entity focused on axial flux technology (AFT) to a comprehensive eDrive solutions provider.
In doing so it has secured a major global original equipment manufacturer (OEM) as its launch customer and established manufacturing facilities in Sunderland, in the UK, and Delhi, India.
Against this backdrop, Saietta confirmed it is looking for further investment to super-charge growth.
Financially, Saietta reported progress. Revenues for the 12 months ended March 31 increased 132% to £4.8 million.
As is to be expected of a company in the formative stages of its commercial journey, Saietta was lossmaking – to the tune of £14 million at the operating level. More importantly, it exited the period with £7.2 million in the bank.
As part of the update, the group said it is confident that its growing sales pipeline will convert into firm commercial orders, leveraging its design and manufacturing capabilities. The company also sees a significant business opportunity in its new in-house radial flux technology (RFT) motor family.
An upbeat Tony Gott, chairman, told investors: “We passionately believe that Saietta has the right product breadth and depth, at the right prices, at the right time, with the right people and the right business partners to fully capitalise on this huge opportunity.
“The Saietta board has therefore taken the decision to seek step-change additional funding in part to underpin our current working capital and, importantly, to also generate the financial resources required to fully capitalise on the potential from the anticipated additional contracts within our sales pipeline, including the huge 2W sector in India.
“We are open on how best to achieve this and are commencing discussions with our key investors to get their advice, but we are determined to appropriately capitalise the business and maximise the ROI for our investors."
The latest update should herald the lifting of the suspension of share trading after Saietta resolved “frustrating technical accountancy issues” that delayed the results.