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Equipmake Holdings PLC on Friday said its annual loss has widened despite turnover soaring nearly 60% higher, as expenses nearly triple in its most recent financial year.
Equipmake is a Norfolk, England-based developer of electrification solutions for the automotive, aerospace, marine, construction and bus markets.
Its pretax loss widened to £9.1 million during the financial year that ended May 31, from a loss of £4.9 million the year before. However, turnover grew 59% to £8.1 million from £5.1 million.
The widened loss was primarily driven by cost of sales nearly tripling to £10.7 million from £3.8 million, whilst administrative expenses rose 9.4% to £7.0 million from £6.4 million.
Equipmake also announced on Friday that it has raised around £3.0 million through a placing of 70 million shares at 3 pence per share and a subscription of 30 million shares at the same price. It intends to use the proceeds to meet its working capital requirements.
Chief Executive Officer Ian Foley said: ‘We are delighted with the strong revenue growth achieved in the year and with the deepening customer engagements, particularly with [original equipment manufacturer] partners and tier 1 suppliers, which reflects our focus going forwards of increasing proportions of revenues from the supply of [electric vehicle] components, drivetrain solutions and through high value licence transactions.
‘We believe we have addressed the cost issues that we experienced in bus repowering during the year by now securing substantially lower cost batteries and other selected components through alternative suppliers and, having had a very busy start to the year, expect strong growth in the year. We have also been working hard to secure additional funding, which we expect to update the market on very soon. Our commitment remains to achieve profitability and cash breakeven as soon as possible.’
Shares in Equipmake were down 0.3% at 2.94 pence on the Aquis Exchange on Friday afternoon.
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