Equipmake (EQIP ), an Aquis-listed provider of electric drivetrain solutions, announced a trading update for the 6 months ended 30 November 2022 and a £6.2m capital raise to support its pipeline of opportunities.

Equipmake reported its current contracted order book at £8.6m. Commerical and production contracts were up to 95.6% of total revenue, compared to 60.3% in HY22, reflecting the company's shift away from grant income and rising commercial demand. As a result of this shift, Equipmake reported a reduction in revenue to £1.05m, compared to £2.32m last year.

Equipmake said it was on track to meet market expectations for the current financial year.

Equipmake also reported a successful £6.2m capital raise at 5p/share to strengthen its balance sheet.

Equipmake will announce full results for the 6 months ended 30 November 2022 on 15 February 2023.

Ian Foley, CEO, commented:

"Demand for our products and services remains strong, and our medium-term pipeline, which is increasingly diversified both in terms of markets and geographies, is robust.

Against this backdrop we are delighted to announce today's proposed placing to raise additional funds to ensure we are well positioned to capitalise on the many and varied opportunities that are presenting themselves."

 

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While markets have focused on the narrowed revenue figure in Equipmake's trading update, the reduction should be a short-term effect resulting from the company's shift away from grant income and an H2 weighting driven by production and delivery schedules. The shift resulted in a substantial increase in commercial and production contracts, now contributing 95% of total revenue, compared to 60.3% for the same period last year.

Equipmake has long-term revenue visibility with a strong contracted order book of £8.6m and remains on track to meet market expectations for the FY. The aforementioned £6.2m placement at 5p should further strengthen the company's balance sheet and enable it to better execute on its pipeline of opportunities.

In addition to ordinary shares, Equipmake also issued VCT placing shares, capable of being a qualifying holding for purposes of investment by venture capital trusts. The VCT shares are expected to be admitted to Aquis Apex on 31 January, and non-VCT shares on 1 February.

Equipmake's diverse pipeline includes electric buses, supercars, fire trucks, and aerospace parts. To accommodate its book order, the company has been expanding its capacity and is in the final stages of securing a lease on a 50,000 sq ft unit, primarily to facilitate production of its growing bus repowering business. The new lease will add significant capacity to Equipmake's primary Snetterton facility, enabling further growth.

Equipmake is well-positioned for continued growth with strong EV market expansion expected in the coming years. For investors interested in the small-to-medium cap EV space, we also recommend that you  Saietta and  Tekcapital's Guident.

Equipmake will announce full results for the 6 months ended 30 November 2022 on 15 February 2023.  Equipmake for further news and updates.