Arrival expects annual losses as high as £840m
Struggling EV vehicle startup Arrival is predicting losses as high as $1.01bn (£840.7m) in its 2022 full-year results.
The unaudited accounts showed losses for the final quarter of 2022 are expected to fall between $588m and $597m.
Arrival, which was founded in Britain but listed on the US Nadaq exchange in 2021 through a merger with a special purpose acquisition company, is yet to report any revenue.
The startup is developing an electric van and bus, with further plans to build a car using cell-based robotic assembly in its micro-factories.
Arrival said Q4 losses are a result of “non-cash impairment charges” and around $406m in write-offs.
The firm has pushed back its annual business update to 13 March due to an inbound transaction that could provide the company with more liquidity and extend its runway. The company did not provide further details.
Last month the cash-guzzling EV firm sold a £41.4m slice to Antara and secured a further £100.2m in debt financing.
Cash on hand for Arrival dropped by $126m in the quarter, down to $205m.
London-based Arrival also reported an increase in its adjusted EBITDA loss between $162m and $172m in Q4, up from $85m in the year-ago period.
The startup axed half of its workforce back in January in a bid to cut costs.
Its quarter-over-quarter increase in losses is a result of salaries and contractor costs not capitalised in the final quarter of last year, Arrival said.
Arriva anticipates adjusted EBITDA losses – accounting for things such as taxes and depreciation – for the year to come in at approximately $380m, up from $203m in the year prior.
In November the firm was issued a warning from the Nasdaq stock exchange because its share price below $1 for 30 consecutive days.