This announcement contains inside information
for the purposes of Article 7 of Regulation (EU) No 596/2014 which
forms part of UK law by virtue of the European Union (Withdrawal)
Act 2018 ("MAR").
13 February 2024
Saietta Group Plc
("Saietta", the
"Company" or the "Group")
Commercial Update
Further to the announcement of 27 November
2023, Saietta Group plc (AIM: SED), the multi-national
business which designs, engineers and manufactures complete
electric drivetrain (eDrive) solutions for electric
vehicles, provides an update on its commercial
activities.
Contract Manufacturing
Opportunity
The Company has received a proposal of £600,000
for the purchase of a redundant production line at the Company's
manufacturing site in Sunderland, UK. This sale is a result of the
Company being unable to reach commercial agreement on an electrical
steering pump contract manufacturing opportunity at its Sunderland
facility, announced previously. The envisaged contract
manufacturing deal, although not for the development any of the
Company's products, was scheduled to have contributed materially to
Group revenue over the medium term, albeit at modest
margins.
Progress with Lead OEM
The Company's joint venture, Saetta VNA,
remains engaged with its lead OEM customer regarding the mass
production of Saietta's proprietary AFT and RFT technology.
Set out below are each of the material contract opportunities
with this customer, as referred to in the announcement of 27
November 2023, and the status of each.
·
Supply of AFT for 3-wheel eDrive
vehicle
Status: Purchase order received,
pilot production underway, commercial production expected to
commence in October 2024
·
Supply of RFT for 3-wheel eDrive
vehicle
Status: Purchase order received for
pilot production as announced 13 November 2023, pilot production
expected to commence in July 2024
·
Supply of AFT for 4-wheel eDrive
vehicle
Status: Targeting initial purchase
order by end of March 2024
Progress with Separate
OEM
The Company remains in discussions with a
separate OEM customer about the potential sale of its RFT eDrive
for a 2-wheel vehicle. As previously indicated, the Company is
targeting the receipt of a 'proof of concept' letter from the
customer by the end of March 2024.
Working Capital
As previously stated, the Company has positive
cash balances that take it through to the end of March 2024. The
Company continues to engage with all its stakeholders regarding its
funding requirements beyond the end of the quarter.
The Company remains confident in its financial
forecasts for the financial year ended 31 March 2024 as set out 27
November 2023, however forecasts for the subsequent financial years
will inevitably be impacted by today's update.
David Woolley,
Chief Executive of Saietta, said:
"The strength
of relationship with our lead OEM and the market opportunity for
our eDrive solutions remains very compelling. Being unable to agree
terms on a contract manufacturing opportunity is no reflection on
the quality of the Company's products. The sale of the redundant
production line in our manufacturing hub in Sunderland (UK) makes
sense for Saietta in comparison to a relatively low margin contract
to manufacture a non-core product under license. This route allows
Saietta to remain 100% focused on our strategic focus of providing
proprietary eDrive solutions to manufacturers of lightweight
electric vehicles. Whereas it does mean that Saietta will not
benefit from contract manufacturing revenue from August 2024, it
will deliver the significant immediate benefit of pulling forward
£600k of income and cash into the financial year ending March
2024.
Alongside
this activity the Board continues to work hard on securing
additional funding to take Saietta through to being self-financing.
The Company will update the market as
appropriate."
-Ends-
For any further enquiries, please
contact:
|
Saietta Group
Tony Gott, Executive
Chair
David Woolley, Chief Executive
Officer
|
contact@saietta.com
|
|
Canaccord Genuity (Nomad and Broker)
Henry
Fitzgerald-O'Connor / Harry Pardoe
|
+44
(0) 207 523 8000
|
About Saietta Group plc
Listed on the London Stock
Exchange's AIM, Saietta is a global business that
designs, develops and manufactures complete electric drivetrain
(eDrive) solutions for established manufacturers of a broad range
of electric vehicles.
Saietta's breakthrough
proprietary technologies include AFT (Axial Flux Technology) and
RFT (Radial Flux Technology) motors, power electronics, powertrain
controls, mechanical axles, transmissions and vehicle control
units. Considerable flexibility is built into the core design,
meaning solutions can be quickly and cost effectively tailored to a
specific application.
Saietta works in a highly
collaborative way with clients, driven by the belief that
partnership is key to delivering world-class tailored solutions at
pace. Saietta's engineering team takes time to deeply
understand a client's brand, target market sector, competition and
the services they require. Then Saietta develops a
bespoke suite of products and services to fast-track the client to
production with eDrive solutions which deliver a sustainable
competitive advantage.