Myenergi, a British startup that produces home chargers for electric vehicles and energy-saving devices, has gone from a profit of £8.8m to a pre-tax loss of £25m in the year to May.
The company, whose backers include former Tesco chief Sir Terry Leahy, blamed the decline on weaker demand, intensifying competition and a £10 million write-down on unsold shares.
Founded in 2016 by Lee Sutton and Jordan Brompton, Myenergi sells the popular Zappi home charger and technology that helps homeowners optimize energy consumption, especially when generating their own electricity. However, in its latest results the company reported an 18 per cent drop in sales to £55.7 million, largely due to what it called “a challenging trading year” and rival chargers being bundled with car sales and financing deals.
In an effort to strengthen its balance sheet, Myenergi raised £28.6 million in new investment from New York-based Energy Impact Partners in October at an undisclosed valuation, with £5.6 million spent on related fees. As part of wider cost-cutting measures, it has also reduced its Grimsby-based workforce from 445 to 339.
Chairman Peter Richardson, previously a director at Dyson, hopes this will give Myenergi the firepower to compete. The company insists it is in a strong financial position, with ‘good growth prospects’, supported by more than a quarter of sales from abroad – mainly Europe.
Myenergi has adjusted its ambitions regarding a possible sale or stock exchange listing. Share options issued in 2022 were due to vest if the company reached a valuation of at least £400 million, but these have since been withdrawn. New options introduced this year will be activated when existing shareholders leave the company.
The company’s troubles come as the Society of Motor Manufacturers and Traders reported a 45.5 percent year-on-year decline in UK production of electric or hybrid vehicles in November. Market analysts including Euromonitor International say the pace of growth in pure EV sales is slowing, with buyers increasingly attracted to hybrids that combine both motor and battery power.