You can’t keep great tech-rich business down. Take revolutionary new eDrive and eMotor solutions developer Saietta Electric Drive (SED) as a case in point.
The stock has rebounded strongly over the past fortnight from deeply oversold levels, and jumped again today as the firm said today that it had received a £5m minimum order for 3,000 eDrives from existing US customer AYRO Inc.
The NASDAQ-listed designer and manufacturer of electric last-mile urban delivery vehicles plans to launch its new Vanish model later this year, and Saietta will be the exclusive edrive supplier and hopes to secure follow-on orders assuming the platform is a success. The 3,000 units will be manufactured at Saietta’s Sunderland plant, with first deliveries earmarked for Q3 2023 and the final batch in Q4 2024.
Importantly, the contract derisks consensus forecasts and represents the group’s further expansion into this high potential global market, which is anticipated to grow by 15% a year to more than double to $165.6bn by 2027.
Tony Gott, Executive Chairman commented: "This contract is a significant milestone for Saietta Electric Drive giving us further presence in the US market and confirming that there is clear demand for our products and services around the world in the fast-growing, final mile delivery vehicle sector. The order is further validation of our strategy to extend our product offer to encompass complete eDrive systems and focus on large-scale opportunities with OEMs, working with them to seamlessly integrate our bespoke solutions into their zero-emissions vehicles."
AYRO Inc. CEO Tom Wittenschlaeger, added: "We have been impressed by Saietta Electric Drive's innovation, flexibility and engineering pace. As we approach the start of production for the revolutionary new AYRO Vanish, Saietta is the natural eDrive partner for AYRO. We believe that their eDrive solution, amongst numerous other class-leading innovations, will put us best-in-class in our segment."
In terms of the numbers, broker Canaccord Genuity anticipates revenues will jump from £4.3m last year to £6.0m, £12.1m and £36.0m over the next 3 years. That would generate adjusted EBITDA and EPS of £12.0m and 7.5p by 2025, alongside a trough net cash position of £2m (from £11m cash in February 2023) and a 120p a share valuation.