Myenergi, a British startup that produces home chargers for electric cars and energy-efficient appliances, swung from a profit of £8.8m to a pre-tax loss of £25m in the year to May.
The company, whose prominent backers include former Tesco boss Sir Terry Leahy, blamed the downturn on weak demand, intensifying competition and a £10 million write-down of 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 use, especially when generating their own electricity. However, in its latest results, the company reported an 18 per cent drop in sales to £55.7m, largely due to what it called a “challenging trading year” and rival chargers being bundled with car sales and finance deals.
In an attempt to shore up its balance sheet, Myenergi raised £28.6m of new investment from New York-based Energy Impact Partners in October at an undisclosed valuation, and spent £5.6m on related fees. As part of wider cost-cutting measures, it has also reduced its workforce in Grimsby from 445 to 339.
Chairman Peter Richardson, a former Dyson executive, hopes this will give Mineergy the muscle it needs to compete. The company insists it remains in a strong financial position, with “good prospects for growth”, supported by more than a quarter of its revenue coming from abroad – primarily Europe.
Myenergi has reset its ambitions around a potential sale or stock market listing. Share options issued were due to vest in 2022 if the company reached a valuation of at least £400m, but have since been cancelled. The new options introduced this year will be triggered when current shareholders leave the company.
The company’s struggles come as the Society of Motor Manufacturers and Traders reported a 45.5 per cent year-on-year decline in UK production of electric or hybrid cars in November. Market analysts, including Euromonitor International, say the growth rate of pure electric vehicle sales is slowing, with buyers increasingly drawn to hybrid vehicles that combine engine and battery power.