REG - Pod Point Group Hdgs - Half-year Report
28/07/2022 07:00
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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 to 30.06.22 6 months to 30.06.21 Period on period change
£'000 £'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 2,776 1,747 59%
profit((3))
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 (£) (0.05) (0.07) (0.02)
As at 30.06.22 As at 31.12.21
£'000 £'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 £0.8
million (2021: £0.4 million) and Owned Asset revenue for H1 2022 of £1.5
million (2021: £0.9 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 £41.6 million
compared to H1 2021
· 48% growth in gross profit to £10.4 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 £0.9 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 £1.4 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 £0.5 million
· Closing cash of £82.1 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 to 30.06.2022 6 months to 31.06.21 Period on 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 recurring revenue per unit((2)) £41 £30 +£11
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 £41.6 million (H1 2021: £26.5 million), with our
Home segment growing by 64% to £27.2 million and our Commercial segment
growing by 40% to £12.1 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 £0.9 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 £10.4 million with headline percentage
gross margin of 25% compared to 27% in 2021. Adjusted EBITDA was a loss of
£1.4 million compared to a positive adjusted EBITDA of £0.5 million in H1
2021. Loss before tax of £7.5 million arose following share based payment
charges, amortisation and depreciation, and any adjusting transactions (H1
2021: £6.7 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/
(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
(mailto: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
(https://protect-eu.mimecast.com/s/j-drCjRx8UNRGPTWhbxy?domain=pod-point.com)
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
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Finvestors.pod-point.com%2Fresults-and-reports&data=05%7C01%7CErin.Sunell%40pod-point.com%7C5bf96f47a21d44433d5808da6fb4eb88%7Cf3d989a0a0704c899276e0f33cb44334%7C0%7C0%7C637945120079839916%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=py05is9F51jjnpQn02mmKIlFAPO0RhbZSoBEN4KvVfc%3D&reserved=0)
Chief Executive's Review
It has been a strong H1 for Pod Point, with revenue growing by 57% from H1
2021 to £41.6 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 £23.8 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 £17.8 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 £27.2 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 £6.3 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 £12.1 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 £2.8 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 £0.8 million from H1 2021. The average
recurring revenue per unit (the KPI we use for these revenues) improved from
£30/unit to £41/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
£5.5 million from £3.9 million at 30 June 2021; this investment helped to
increase revenues to £1.5 million from £0.8 million in H1 2021. The majority
of this increase was media related revenues but usage revenue grew to £0.4
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 £2.7 million, compared to £1.1
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 £82 million of cash in hand and expect to have in excess of
£70 million at the year end.
Sector Review
In the Home business segment:
· The Home business segment delivered a strong performance, with
revenue of £27.2 million in H1 2022 (H1 2021: £16.6 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 £6.3 million compared to £4.6 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 £0.9 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 £12.1 million in H1 2022,
compared to £8.7 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 £2.8 million compared to £1.7 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 £1,356 from £1,767 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 £0.8 million in H1 2022,
compared to £0.4 million in H1 2021, an increase of 91%. Network revenues
increased to £0.5 million compared to £0.3 million in H1 2021 and other
revenues increased to £0.3m compared to £0.1 million in H1 2021.
· This increase in revenues helped to deliver an increased gross
margin in H1 2022 of £0.4 million compared to £0.2 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 £41 compared to
£30 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 £1.5 million in H1 2022,
compared to £0.9 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 £0.9 million compared to £0.5 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 £5.5 million at
the end of 30 June 2022 (H1 2021: £3.9 million).
Financial Performance
It was a strong performance by the business in the 6 months ended 30 June 2022
with total revenue of £41.6 million (2021: £26.5 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 £10.4 million (2021: £7 million) an increase of 47%.
Total percentage gross margin in H1 2022 decreased to 25% (2021: £27%).
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 £1.4 million in H1 2022 (H1 2021: positive £0.5
million)
Helped by the funds raised at the IPO in November 2021 period end cash and
short term investments were £82 million compared to £96.1 million at the end
of 2021.
Unadjusted losses after tax increased to £7.5 million in H1 2022 (H1 2021:
£6.7 million). EBITDA losses increased in H1 2022 with losses of £4.0
million (H1 2021: £3.8 million). There were increased depreciation and
amortisation costs of £3.5 million in H1 2022 (H1 2021: £2.3 million) and
decreased net financing costs of £77k (H1 2021: £0.6 million).
Total administrative expenses as disclosed on the Income Statement increased
to £17.9 million in H1 2022 compared to H1 2021 of £13.1 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 £11.8 million in H1 2022 compared to H1 2021
of £6.6 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 £3.5
million compared to £2.3 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 £2.6 million for H1 2022 (H1 2021: nil).
· One-off large corporate transaction and restructuring costs,
relating primarily to the Listing were £nil for H1 2022, compared to £4.3
million for H1 2021.
Net finance costs, primarily related to borrowing costs on a loan to fund
owned assets, decreased to £0.1 million in H1 2022, compared to £0.6 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 £82.1 million (31 December 2021:
£96.1 million). At 30 June 2022 £nil cash had been placed on a six month
bank deposit and so has been classified as a short term investment (31
December 2021: £50 million). Closing net assets were £194.5 million (31
December 2021: £199.8 million).
Cash outflow from operating activities increased in H1 2022 by £3.6 million
to £8.7 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 £44.3 million in H1
2022 as compared to outflows of £3.5 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 £0.3 million H1 2022
compared to £7.1 million in H1 2021 with new borrowings of £1.3 million in
H1 2022 compared to new borrowings from shareholders to fund the business in
H1 2021 of £8.1 million.
During H1 2022, transactions with related parties included sale of goods of
£43k (2021: £245k) purchase of goods of £273k (2021: £247k), and interest
on intercompany loans of £nil (2021: £510k). 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/ (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
Notes 6 Months Ended 6 Months Ended Year ended
30 June
30 June
2022
2021 31 December
(unaudited) 2021
£'000 £'000 £'000
Revenue (including OZEV revenues) 2,3 41,552 26,497 61,415
Cost of sales (31,164) (19,458) (45,070)
Gross profit 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 £(0.05) £(0.07) £(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
Notes As at As at As at
30 June
30 June
31 December
2022
2021
2021
(unaudited)
£'000 £'000 £'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 ESOP Reserve Retained Total
Capital
Premium
Reserves
earnings
equity
£'000 £'000 £'000 £'000 £'000 £'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
Notes 6 Months Ended 6 Months Ended Year ended
30 June
30 June
2022
2021 31 December 2021
(unaudited)
£'000 £'000 £'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 £nil cash was held in a short term deposit account at 30
June 2022 (31 December 2021: £50 million, 30 June 2021: £nil) 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 £ 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
£'000 £'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 Recurring Total
Home
Commercial
Assets
Group
£'000 £'000 £'000 £'000 £'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:
Home Commercial Owned Recurring Total
Assets
Group
£'000 £'000 £'000 £'000 £'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:
Home Commercial Owned Recurring Total
Assets
Group
£'000 £'000 £'000 £'000 £'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 Ended Year Ended
30 June
30 June
31 December
2022
2021
2021
(unaudited)
£'000 £'000 £'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 Ended Year Ended
30 June
30 June
31 December
2022
2021
2021
(unaudited)
£'000 £'000 £'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 Ended Year Ended
30 June
30 June
31 December
2022
2021
2021
(unaudited)
£'000 £'000 £'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, £2,752k of staff costs were
capitalised (6 months ended 2021: £1,142k year ended 31 December 2021:
£2,904k).
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 Ended Year Ended
30 June
30 June
31 December
2022
2021
2021
(unaudited)
£'000 £'000 £'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 Ended
30 June
30 June Year Ended
2022
2021
31 December
2021
(unaudited)
£'000 £'000 £'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):
Development Brand Customer Goodwill Total
Relationships
£'000 £'000 £'000 £'000 £'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:
Development Brand Customer Goodwill Total
Relationships
£'000 £'000 £'000 £'000 £'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:
Development Brand Customer Goodwill Total
Relationships
£'000 £'000 £'000 £'000 £'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 Equipment Owned Total
Assets
£'000 £'000 £'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 Equipment Owned Total
Assets
£'000 £'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 Equipment Owned Total
Assets
£'000 £'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 As at As at
31 December
30 June 30 June
2021
2022 2021
(unaudited)
£'000 £'000 £'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 £15,836k (6 months ended 30
June 2021: £11,161k year ended 31 December 2021: £24,554k). An impairment
loss of £nil 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: £nil, year ended 31 December 2021: £229k).
10. Trade and other receivables
As at As at As at
31 December
30 June 30 June
2021
2022 2021
(unaudited)
£'000 £'000 £'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 As at As at
30 June
31 December
30 June
2021
2021
2022
(unaudited)
£'000 £'000 £'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 £1,000k 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 As at As at
30 June
31 December
30 June
2021
2021
2022
(unaudited)
£'000 £'000 £'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 £3.5
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 £1.25 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 £630k. On 6 October 2021 EECL waived a loan of £630k 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 As at 30 June As at 31 December
2022
2021
2021
(unaudited)
Number £'000 Number £'000 Number £'000
Allotted, called up and fully paid:
Ordinary shares of £0.001 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 £.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 £0.0001 each, resulting in a share capital of £100,000,
divided into 1,000,000,000 ordinary shares of £0.0001 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 £100,000, divided into
100,000,000 ordinary shares of £0.001 each. This resulted in a reduction of
share premium of £100,000.
• 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 £117,940,367, represented by share capital of £53,403
and share premium of £112,229,304. Immediately following Admission, the
issued share capital of the Company was £153,404, comprising of 153,403,537
shares of £0.001 each.
Issuance costs of £7,664k 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 £0.0001 per share were issued to EECL and LGCIL. A
share premium reserve arose of £26.4 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 Ended Year Ended
30 June
30 June
31 December
2022
2021
2021
(unaudited)
£'000 £'000 £'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 Ended Year Ended
30 June
30 June
31 December
2022
2021
2021
(unaudited)
Loss for the period attributable to equity holders (£) 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.
Group Company Sales of goods Purchase of goods
EDF Energy Limited £43k -
EDF Energy Customers Limited - £273k
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:
Group Company Sales of goods Purchase of goods Interest and fees on
intercompany loan
Legal & General group £27k - £114k
EDF Energy Limited £57k - -
EDF Energy Customers Limited - £247k £397k
During the year ended 31 December 2021, the Group had the following
transactions group companies part of the EDF Group and Legal & General
group:
Group Company Sales of goods Purchase of goods Interest and fees on
intercompany loan
Legal & General group £46k - £232k
EDF Energy Limited £263k - -
EDF Energy Customers Limited - £850k £806k
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 £112k (6 months ended 30 June 2021:
£162k, year ended 31 December 2021: £48k)
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.
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