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Highlights
- Equipmake posted a 60% increase in revenue, reaching £8.1 million for the year ending May 31, 2024, driven by growth in Bus Repowering and drivetrain solutions.
- The company secured key contract wins with Tier 1 clients, including Caterpillar, Rev Group, and Textron, further establishing its position in the electrification market.
- Equipmake raised £3 million in a financing round in October 2024, though it faces a limited cash runway into March 2025, pending licensing agreements and further financial activities.
Equipmake (EQIP.PL), a leader in electrification technologies for the automotive, truck, bus, and specialty vehicle industries, has released its final audited results for the fiscal year ended May 31, 2024. The company demonstrated significant financial growth, strategic leadership enhancements, and key client wins, reinforcing its position in the fast-evolving electrification market.
Leadership Team Strengthened to Drive Future Growth
During FY 2024, Equipmake made key additions to its leadership team, aimed at strengthening its commercialisation and expansion efforts. In January 2024, Nicholas Moelders was appointed Chief Operating Officer and a Director of the company. Following this, Anthony Ratcliffe joined in April 2024 as Chief Financial Officer, Director, and Company Secretary. In May 2024, Jinsong Dai was appointed VP Sales and Business Development. These leadership changes are expected to drive significant growth as the company builds on its strong foundations in the international technology sector.
Revenue Growth and Key Contract Wins
For the year ended May 31, 2024, Equipmake reported total revenue of £8.1 million, reflecting a 60% increase compared to £5.1 million in FY 2023. Excluding grant revenue, the company generated £7.3 million in revenue from commercial agreements, marking a 47% growth from the previous year. Notably, revenues from Bus Repowering surged to £3.9 million, driven by strong demand for zero-emission technologies, up from £0.9 million in FY 2023.
Equipmake’s supply of components and full zero-emission drivetrain solutions also saw solid growth, with £3.0 million in revenue, a 25% increase compared to the prior year. However, revenue from technology services, including engineering consultancy, dropped to £0.4 million, down from £1.3 million, as the company refocused its engineering services to align with its core product offerings and OEM partnerships.
Strong Cash Position Despite High Receivables
As of May 31, 2024, Equipmake’s cash balances stood at £2.5 million, a decrease from £7.0 million at the end of FY 2023. The company reported high receivables of approximately £2.5 million at year-end, due to the phasing of billing. Despite the cash reduction, Equipmake remains debt-free aside from finance leases, positioning it to manage its liquidity efficiently.
Strategic Developments Post Year-End
Following the end of the fiscal year, Equipmake has made notable progress in its higher-margin drivetrain and electric vehicle components supply to OEMs and Tier 1 clients. The company signed a Manufacturing and Supply Agreement with Textron after a successful trial, marking a significant step in its strategic growth. Additionally, Equipmake is in advanced discussions with a major automotive supplier for licensing its functional safety technology, with a potential $6 million in milestone payments and future royalties.
In October 2024, the company closed a £3 million financing round to support its growth plans, although it has a limited cash runway estimated to last until March 2025, excluding potential licensing revenue.
Cost-Reduction and Efficiency Measures
Equipmake is actively pursuing several cost-reduction initiatives, including sourcing lower-cost components and reducing its headcount. These efforts are part of a broader strategy to improve manufacturing efficiency and sustain long-term growth.
Leadership Change
In a separate development, Tony Ratcliffe, the company’s Chief Financial Officer, Director, and Company Secretary, resigned effective November 30, 2024.
