Tuesday, November 5, 2024

Blink Charging to boost UK EV infrastructure with £100 million SPV By Investing.com

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BOWIE, Md. – Blink Charging Co. (NASDAQ: NASDAQ:), a prominent player in the electric vehicle (EV) charging sector, has announced the creation of a Special Purpose Vehicle (SPV) with a £100 million initial funding goal to expand EV charging infrastructure in the United Kingdom (TADAWUL:) and other regions. The initiative, in partnership with Axxeltrova Capital, a private equity firm specializing in investments in digital infrastructure and renewable energy, aims to draw in additional investors to support the burgeoning EV infrastructure market.

The SPV is designed to further the development of accessible charging networks and is poised to benefit from subsidies through the UK’s Local Electric Vehicle Infrastructure (LEVI) funding. Mike Battaglia, CEO-Elect of Blink Charging, expressed enthusiasm for leading the charge in the EV sector’s evolution and invited other investors to partake in the promising future of electric mobility.

Miko de Haan, President of Blink Europe & Emerging Markets, highlighted the strategic collaboration with Axxeltrova, noting the firm’s financial acumen in tech investments as a vital asset in meeting the infrastructure needs across the UK. Rick Phillips, Managing Partner at Axxeltrova, shared the sentiment, emphasizing the importance of developing essential infrastructure to meet the growing demand for electric vehicles.

This move by Blink Charging aligns with its commitment to facilitating the transition to electric mobility by providing innovative charging solutions. The company’s Blink Network operates on proprietary software that manages and tracks connected EV charging stations and data. Blink Charging has formed strategic partnerships to promote the adoption of EV charging across various locations, including parking facilities, multifamily residences, workplaces, and more.

The establishment of the SPV represents a significant step for Blink Charging and Axxeltrova Capital in advancing the EV charging landscape, aiming to offer a sustainable investment opportunity and contribute to the overall growth of the EV sector. This announcement is based on a press release statement from Blink Charging.

In other recent news, Blink Charging Co. has been making significant strides in the electric vehicle (EV) sector. The company recently secured a nearly $2 million grant from the Illinois Environmental Protection Agency to install and manage EV charging stations in the state. In addition, Blink Charging has entered into a strategic partnership with Stable Auto, leveraging AI-powered analytics to optimize its charging network, resulting in a 34% improvement in efficiency and increased net revenue across 60 locations.

These developments come alongside Blink Charging’s announcement of a significant milestone of over 100,000 chargers sold, deployed, or contracted worldwide. The company also reported a second-quarter revenue of $33.3 million and a gross margin of 32%. However, due to financial underperformance, Stifel, a financial services firm, adjusted the price target for Blink Charging’s shares.

As part of a cost reduction strategy, Blink Charging announced layoffs expected to save around $9 million annually. In leadership changes, CEO Brendan Jones is set to retire in 2025, with Michael Battaglia, the current COO, succeeding him. These are the recent developments for Blink Charging Co. as it continues to focus on strategic partnerships, cost management, and expanding its EV charging infrastructure.

InvestingPro Insights

As Blink Charging Co. (NASDAQ: BLNK) embarks on this ambitious expansion in the UK, investors should consider some key financial metrics and insights from InvestingPro. The company’s revenue growth has been impressive, with a 66.29% increase in the last twelve months as of Q2 2024, reflecting the growing demand for EV charging infrastructure. This aligns well with Blink’s strategic move to create the SPV for expansion in the UK market.

However, it’s important to note that Blink is currently not profitable, with an operating income margin of -44.34% in the same period. This is consistent with an InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year. The company’s aggressive expansion strategy, as evidenced by the £100 million SPV initiative, may be a response to this challenge, aiming to capture market share and achieve economies of scale.

Another InvestingPro Tip reveals that Blink holds more cash than debt on its balance sheet, which could provide some financial flexibility as it pursues growth opportunities. This solid cash position may help support the company’s expansion plans and potentially attract additional investors to the SPV.

For investors considering Blink Charging, it’s worth noting that InvestingPro offers 10 additional tips for BLNK, providing a more comprehensive analysis of the company’s financial health and market position. These insights can be valuable for understanding the potential risks and rewards associated with Blink’s ambitious growth strategy in the evolving EV charging market.

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