(Alliance News) - Saietta Group PLC on Tuesday said the supply chain for its Drive system is now ready, as technical collaboration agreements for key components, including the gear box and power electronics, are also in place with major companies in the Indian market.
Saietta shares were down 26% trading at 25.75 pence per share on Tuesday afternoon in London.
The Bicester, England-based engineering company specialising in electric vehicles said it is confident that mass production in India will begin later this year, in line with its plan, with a target of producing 80,000 eDrive systems over a five-year period.
The company said it has received around GBP986,000 in engineering design services purchase orders from Consolidated Metco Inc so far this year, with up to GBP3.2 million receivable in financial 2024.
Saietta has 11 other original equipment manufacturer enquiries at various stages, from request for quotes to final selection.
The company also noted that it now expects financial 2023 revenue to grow by at least 40% from the year prior, while the outlook for financial 2024 indicates "growth of at least 100%".
The company added that it is confident in fully financing its operations without requiring further external fundraising, by focusing on developing revenue streams and removing excess costs.
Chair Tony Got said: "As previously communicated in October 2022, the core business of Saietta in light-duty integrated eDrives is developing at a greater scale and faster pace than the company originally envisaged.
"Meeting current customer demands for volume mass production in Q3 2023 in order to allow the associated vehicle platforms to be launched in Q1 2024 has become an absolute priority for the group."
Saietta noted that it does not expect material sales in the 2023 boating season for its marine division, despite reaching commercial agreements with the UK, Ireland and Finland, due to supply delays affecting key electronic components. Meanwhile, the company's technical centre at Silverstone is set to be completed and in operation by the end of March, bringing together its design, procurement, sales, workshop and test facilities together fort the first time.
By Harvey Dorset, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
