Saietta: Administration warning issued by EV tech firm once worth over £100m
Electric vehicle drivetrain technology company Saietta Group has issued a warning it may need to start planning to enter administration if a sale is not agreed.
The Bicester-headquartered company has launched a formal review of its strategic options which includes a potential sale of the business.
The group said its directors have become “increasingly aware that certain contracted cash receipts may be withheld” and that a date on which it can no longer solvently trade has been brought forward.
Saietta Group added that it will “continue to look at all financing and other strategic options” in order to secure its future.
A statement issued to the London Stock Exchange, said: “Whilst the company’s cash flow model shows positive cash balances to the end of March, the company’s directors are becoming increasingly aware that certain contracted cash receipts may be withheld, therefore bringing forward the date, absent any further funding, on which the company can no longer solvently trade.
“The board continues to believe in the quality of Saietta’s products and the compelling market opportunity and accordingly remains hopeful that a solvent solution for the company can be found.
“The company will continue to look at all financing and other strategic options available and has a number of discussions ongoing.
“Should the company not have made material progress with its formal sale process or with any other financing initiatives by the end of next week, the company may need to commence planning for an administration. A further announcement will be made in due course.”
In its interim results for the six months to September 30, 2023, Saietta Group posted a revenue of just under £1m and pre-tax losses of almost £8m.
Saietta Group listed on the London Stock Exchange’s AIM in June 2021 in a move that raised gross proceeds of £37.5m and that valued it at more than £100m.
However, its market capitalisation has plunged since then and it is now worth in the region of £8m, with its shares trading at around 6p each.
Last week, the group revealed a proposed £600,000 sale of a redundant production line at its Sunderland site.