10th Jan 2025 10:09
(Alliance News) - Equipmake Holdings PLC on Friday said its loss widened during the first half of its current financial year, as the cost of sales accelerated by more than 50%.
The Norfolk, England-based company is an electrification solutions developer for the automotive, aerospace, marine, construction and bus markets.
Equipmake said its pretax loss for the six months that ended November 30 was GBP4.3 million, widened from GBP3.0 million the year before.
Revenue grew 17% to GBP2.5 million from GBP2.1 million, while the cost of sales inflated by 54% to GBP3.3 million from GBP1.9 million.
Administrative expenses fell 3.1% to GBP3.2 million from GBP3.3 million, but this reduction was offset by an exceptional item payment of GBP336,752 during the six months, up from nothing last year.
Chief Executive Officer Ian Foley said: "[The first half of financial 2025] has been a period of significant progress for Equipmake as we shifted our focus towards higher margin Drivetrain and EV Components business and laid the foundations for long-term profitability and growth.
"By scaling back our bus repowering activities and moving away from lower margin business units, we are starting to leverage the credibility and success that our technology has gained in real-world applications. This strategic shift is further bolstered by the exciting new partnerships we are developing with leading global [original equipment manufacturers] and Tier 1 customers, such as Textron and Agrale."
He continued: "During the period we have taken significant steps to enhance operational efficiencies and reduce costs, but the strategic review and formal sale process we are now undertaking are necessary steps to ensure we can capitalise on the growing demand for our electrification technologies.
"I remain confident that Equipmake's innovative solutions and the strong relationships we are cultivating will enable us to secure a pathway to sustainable growth and long-term value creation for all stakeholders."
Equipmake launched a strategic review at the beginning of December to "plan for all eventualities", as its cash resources will only last until March if no offers are made.
The group said on Monday it has entered into discussions with multiple potential offerers for investments, partnerships or acquisitions, which remain ongoing.
Shares in Equipmake were untraded at 1.475 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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