Pure Electric, the scooter brand run by former Hargreaves Lansdown investor Adam Norris, has predicted it will make its first profit in 2026 and transforming its business model.
The Somerset-based business added that its pre-tax loss will continue to fall during its current financial year as it expands further across the world.
The forecast comes as the company, which is run by Norris, the father of McLaren F1 star Lando, reported a pre-tax loss of £7.5m for the 12 months to 29 February, 2024.
The latest figure compares to the £14.6m loss it posted in the prior financial year.
However, the newly-filed accounts with Companies House also show that its overall turnover declined from £20.8m to £18.1m while its headcount was slashed from 139 to 59 as a result of closing stores and “efficiencies”.
Pure Electric said its operating loss decreased because of a reduction in administrative and exceptional expenses of £6m as well as a £1.1m increase in gross profit following the exit of loss-making stores, selling bikes and low margin third party scooters in the prior financial year.
It added that its revenue falling by 13 per cent was also as a result of stopping to sell bikes and closing stores.
In the year, Pure Electric’s UK sales were slashed from £18.9m to £9m but surged from £1.9m to £8.4m in the rest of Europe. It also generated a turnover of £690,213 in the rest of the world.
During the year the company expanded into Halfords, Argos, Evans and Selfridges in the UK as well as Australia, the Nordics, China and Italy.
Pure Electric added that its administrative costs fell by 20 per cent to £10.4m, “largely driven by restructures to reflect a leaner business model”.
Pure Electric ‘in an unrivalled position’
A statement signed off by the board said: “In FY25 we will continue to expand our third party distribution in existing markets and expand geographically, including Japan, Switzerland, Germany and UAE.
“With its differentiated own brand, Pure Advance scooter range, a partnership with McLaren and global expansion plans, the group remains in an unrivalled position to exploit the incipient micromobility trend and become the leading global escooter brand.”
The company added: “The business will continue to identify further cost base efficiencies and has plans for new product launches, expansion within existing markets and geographical expansion.
“As a result, the group is forecasting a significant reduction in losses in FY25 with the aim to generate profit [in] FY26 onwards.”
In October 2024, Pure Electric raised £2.27m through a crowdfunding campaign, 227 per cent more than its target.
The round attracted 874 investors and brought the company’s total investment to more than £70m.
Documents filed for Pure Electric’s parent company, PST Holdings, show its turnover fell from £27.1m to £19.9m in the same financial year while its pre-tax loss was cut from £21.8m to £11.3m.
Horatio Investments, the vehicle controlled by Adam Norris, also reported the same turnover figures while its pre-tax loss went from £23.6m to £13.1m.