2023 has undoubtedly been a very challenging period for Saietta Electric Drive (SED) , a tier-1 eDrive supplier for 2, 3 and 4-wheel electric vehicles (e.g. motorcycles, rickshaws, vans) combining RFT/AFT motors, transmissions, software and electronics.
At the same time, SED now boasts two large 5-year contracts signed in India covering >£150m of sales and 100k units, alongside a robust supply chain (including a 49% stake in Indian JV Saietta VNA with Padmini VNA Mechatronics Limited), expanding pipeline of new opportunities (>£200m) and attractive valuation. The group is therefore ideally placed to generate significant shareholder returns in 2024 and beyond.
Better still, Saietta Electric Drive has just raised £7.14m at 17p/share - which should be sufficient to fund itself until at least April 1st - after which further working capital will be required to support new contract wins and the associated top line growth.
Ok, so what's next?
Well, the main task is execution. High quality eDrives are already being produced in India whilst elsewhere the Board is actively engaged in discussions with 2 potential partners to take on the commercialisation of its marine division, Propel. Once completed, this should yield ongoing revenue and royalties from product sales, as well as technology transfer fees.
CEO David Woolley commenting: "Saietta Electric Drive has now raised £7.14m gross - which with tight control over costs, will meet its working capital needs until the end of March 2024. Management continue to explore alternative sources of funds to take the Company through to a cash positive position thereafter."
"The Group is ready to enter the next stage of its evolution as a large-scale manufacturer."
Time to be patient.
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