Saietta announces year end trading and operational update
[source: Saietta]
The markets are running scared at the moment.
Not surprising really, given fears over the cost of living crisis, future stagflation/recession, rising interest rates, quantitative tightening, red hot inflation &/or the Ukraine/Russian conflict.
However what is far less uncertain, is the underlying economics & political will towards decarbonisation, electrification & all things EV is now more compelling than ever.
One company at the heart of this multi-decade, secular shift is .
Today this pioneering, axial flux electric motor manufacturer confidently said that FY22 revs would be £3.6m (Canaccord £3.9m) - or up >4-fold on LY's £0.87m.
Adding too that “adjusted EBITDA would be in line with forecasts (Canaccord Est -£4m)”, and it was "on track to reach its FY23 revenue expectations (Est £21.4m)”.
Elsewhere in April, also accelerated its commercialisation strategy by renting an existing automotive components factory in Sunderland, buying 4 electric motor production lines for £1.1m from the previous tenant ZF Group and re-employing a proven, skilled 39 person workforce.
The plan being to relocate its ‘e-Axle’ brand from China to the Rainton Bridge site, alongside producing 100,000 electric motors pa for Europe (eg for its marine brand ‘Propel’) & showcase its cutting-edge technology.
But that's not all. patented AF motors are ideal for powering the world’s 57m motorbikes, tuk-tuks & other 2/3 wheelers (eg India, China, etc) - as they transition to carbon-free, all-electric. As well as being deployed in out-board motorboats (eg Holland), supercars & last mile delivery vehicles (eg EAV). Together an enormous 40m+ unit TAM by 2030.
Sure there are a handful of other AF motor developers (eg Mercedes’ YASA division, REE Automotive, WHYLOT, etc), but I understand none have yet focused on 2/3 wheelers, since their unit costs are substantially higher.
Ok, so how big could become?
Well hypothetically, if it were to win a 5% share (2m units pa) by 2030, then this could represent $60m-$90m of
EBITDA. Which if rated on a 15x multiple, might theoretically produce a $900m-$1.35bn valuation: or equivalent to £7-£11/share vs 185p.
CEO Wicher Kist commenting "The significant revenue increase has been supported by the launch of Propel, our marine division, and the acquisition of e-Traction in November which expanded both our technology and market footprint. There has been a phenomenal advance in our operating model which has been driven by strong customer interest for our AFT and RFT motor technologies."
"We are still at the early stages of the journey to commercialise our electric drive technology at scale. However, I am delighted to see Saietta accelerate the trajectory set out at the time of the IPO and look forward to delivering another period of strong growth in the current financial year.”
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