In its half-year results for the six months ended 30 September 2021, Saietta Group said it has made “considerable progress” since its IPO in July 2021 and that it remains “on track” to increase its UK-based production capacity to the target of 100,000 units per annum by 2024.
The UK-based company, which develops patent protected AFT electric motors for electric vehicles, reported that sales revenue had increased ‘significantly’ to £0.795m from £0.056m in 1H20 as a direct result of the Company marketing its launch motor topology in 4Q20.
Saietta noted that with a broadened AFT motor range and the access to additional markets achieved through EAV and E-Traction, that the ‘rapid revenue growth is set to continue.’
Saietta reported gross profit of £0.437m, up from £0.037m in 1H20 with a gross margin of 55%. Operational and administrative expenditure exceeded prior year by £3.0m (511%) of which £1.2m was related to the IPO process while excluding the impact of share option charges and IPO costs, adjusted EBITDA was a loss of £1,064k, 170% higher than in 1H20.
The Group cited that its IPO, which enabled it to raise £37.5m, was ‘a major step’ in its continuing development to support the acceleration of its commercial progression to mass production of the proprietary AFT electric motor for a range of global market applications.
It said the financial resources secured through the IPO have enabled the Group to accelerate its interaction with a number of OEMs including the completion of a number of operating motorbike models retro-fitted with Saietta motors which now are being shipped to India.
Around £2.0m of expenditure commitments had been placed and headcount increased by more than 90% by 30 September 2021. Meanwhile, Saietta said it remains well on track to ramp up its UK-based production capacity to its target of 100,000 units per annum by 2024.
Saeitta said it has made considerable progress in its core focus lightweight mobility market as it currently expands its UK production and testing capabilities at a site at Silverstone Park. It is also in discussions about securing production capacity at facilities in the North of England.
Since 1H21, Saeitta has committed a further £3.8m of capital expenditure on production automation equipment and, through the e-Traction acquisition, headcount has again doubled.
The Group explained that the acquisition of e-Traction will allow Saietta to accelerate its business plan by several years adding not just commercial and technical capability ‘but also extending our IP portfolio and acquiring an operational power electronics production facility.’
Specifically, it said the addition of an operational inverter production line, at a fraction of the cost to develop such organically, considerably accelerates a number of its business goals.
Following the completion of its IPO in July, Saietta said it is well positioned to drive forward commercial opportunities. Having already secured some revenue in H1, more substantial results are expected in H2, particularly following the November launch of Propel, it noted.
Saietta said it continues to receive a large volume of sales enquiries from numerous OEMs and that management is confident of entering into material contracts, ‘possibly before the end of the financial year.’ It added that it expects to achieve its targets for the full year.
Wicher (Vic) Kist, Saietta’s CEO, said: “Having demonstrated that Saietta can reduce electric drivetrain cost without diminishing performance, which is essential if EVs are to become more accessible for mass market consumers, we have continued to grow our range of AFT motors. “We can now address a wider range of vehicle platforms from lightweight to commercial and have recently launched our marine propulsion motors under the Propel brand.
Kist added, “We are busier now than at any time in Saietta's history and the level of interest from the industry since we launched the AFT140 late last year gives us great confidence for a strong second half and in the longer-term opportunities for the Company."
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