Pod Point Group Holdings, the electric-vehicle charging company, announced that its pretax losses for the first half of 2023 have increased due to declining demand and weaker revenue. Despite this, the company remains confident in its full-year outlook.
During the first half of the year, Pod Point reported a pretax loss of £32.8 million, compared to a loss of £7.5 million in the same period last year. The decline in revenue can be attributed to the end of the U.K. government’s OZEV grant program, which had significantly boosted demand during the previous year. In total, revenue fell to £30.6 million from £41.55 million.
The company’s home business segment was the hardest hit, experiencing a 54% decrease in revenue to £12.4 million. However, three other business segments reported growth.
When looking at the adjusted loss before interest, taxes, depreciation, and amortization (EBITDA), which is considered Pod Point’s preferred metric as it excludes exceptional and one-off items, the company’s losses widened to £6.8 million, up from £1.4 million.
Despite these challenges, Pod Point remains committed to its recent downgraded full-year guidance. The company expects to achieve at least £60 million in revenue, with an adjusted EBITDA loss not exceeding £17 million.
The company is optimistic about the future and anticipates an improvement in gross margin during the second half of the year. This expected improvement is based on enhanced supply chain operations and strategic actions implemented by Pod Point.