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Pod Point Short Report
Crowdfunding, Equity, Short Report
1

Date: 24 November 2015

podpoint

Company Name: Pod Point Holding Limited (Equity)

Company Information

Electric Vehicle charging point provider

The company develops, sells and installs EV charging points (hardware) and related software for EV-owners to charge their cars where they park; at home, at work and various destinations (supermarkets, gyms, train stations etc).

Originally established: 2009
Industry: Chargers for EV's
Sector: Electrical Equipment
Instrument: Equity Investment
Tax Status: EIS
End Date: 2nd December 2015 (Equity)
End Date: 20th December 2015 (Mini Bond)
Share type offer: Ordinary A Shares
Target Equity: £1,500,000 minimum
Target Mini Bond: £250,000 minimum, maximum £500,000
Pre-money valuation: £26,022,936

Platform: Crowdcube
Pre-emption round on Seedrs for shareholders from previous Seedrs round

Use of Equity Funds
Scale sales & marketing function (£1.0m), software development (£500k).

Use of Mini Bond Funds
Help finance the roll-out of public EV charging network

Key Data
Majority Shareholders: Peter Hiscocks (Chairman) (44%), Erik Fairbairn (40%), Seedrs Investors (7%)
Management Team: E. Fairbairn (CEO & Founder), R. Walden (Operations Director), G. Howard (Commercial Director) , R. Heywood (Software Director), D. Houde (Board Member)
Stage of Development: Expansion phase, £6.5m revenues in year to June 2015
Proof of Concept: 20,000 charge points shipped, 10 million miles electric motoring supplied
Innovativeness: Established business model with multiple market players

Market Potential
Fast growing market with significant growth potential
Scalability: Scalable business
Market Players: Chargemaster (UK), Rolec (UK), Electromotive (UK)
Digital Footprint: Twitter followers: 3.1k, 675 likes Facebook, Unique monthly visits October 2015 6k, (in comparison Chargemaster 5k)

Key Financials
Last reported P/L: £35k EBIT (in the year to June 2015)
Next Accounts: Accounts made up to June 2016 due to Companies House by March 2017
Previous Funding: £1,45m in January 2015 (pre-money valuation £16.2m)

Unique Deal Features
A shares only for all
Equity & Mini-Bond raise simultaneously

Some Points for Further Investigation
It is unclear whether the Mini-Bond raise would still go ahead or not if the equity raise does not complete. If yes, this scenario would negatively influence the risk/reward balance for Mini-Bond holders given the interest rate of 8% remaining constant.

0.85% Probability of Default (“PD”) rate indicated by Crowdcube seems low: Crowdcube uses a model, provided by Moody’s Analytics, to estimate this rate. However, also the details of the model and the specific financial metrics/inputs used in this model for Pod Point would be pertinent to disclose in All Street’s view.

The expected recovery rate in an event of default has not been estimated. An assessment of the potential recovery rate in an event of default is essential to evaluate overall attractiveness of lending propositions. Recovery rates could in general be constrained if lending is unsecured and/or with limited protections/covenants/restrictions in the documentation.

EV’s using fuel cells and compressed hydrogen to generate electricity in-car could limit the overall market for EV charging points if hydrogen filling stations are built out quicker than anticipated. Fuel Cell EV’s do not require recharging of batteries, can refill in ca 5 min, with the range of an ordinary petrol car and only emitting H2O at the tail-pipe.

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  1. Pod Point extends funding period:

    Pod Point has extended the funding period on crowdcube.com with the new expiry date for the £1.5m Equity campaign (funded 87% as of 5/12) now being 21st of December 2015. This matches the expiry date for the Pod Point Bond offering (currently 77% funded).

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