Retail & Consumer

Scooter firm Pure Electric set for profit in 2026 after business overhaul

Pure Electric, the scooter company led by former Hargreaves Lansdown investor Adam Norris, has projected its first profit for 2026 following a shift in its business model. The Somerset-based firm anticipates that its pre-tax loss will continue to decrease throughout the current financial year as it expands globally, as reported by City AM. This forecast follows the company's report of a pre-tax loss of £7.5m for the 12 months ending on 29 February, 2024, a reduction from the previous year's loss of £14.6m. However, recently filed accounts with Companies House reveal a drop in overall turnover from £20.8m to £18.1m and a reduction in staff numbers from 139 to 59 due to store closures and "efficiencies". Pure Electric attributes its reduced operating loss to a £6m cut in administrative and exceptional expenses and a £1.1m increase in gross profit after exiting unprofitable stores and ceasing sales of bikes and low-margin third-party scooters. The company also cites a 13% revenue decline as a result of these changes. Over the past year, Pure Electric's UK sales fell from £18.9m to £9m, while sales in the rest of Europe rose from £1.9m to £8.4m. The company also reported a turnover of £690,213 in other global markets. Over the past year, Pure Electric has expanded its presence into Halfords, Argos, Evans and Selfridges in the UK, as well as Australia, the Nordics, China and Italy. The company reported a 20 per cent reduction in administrative costs to £10.4m, largely due to restructuring for a leaner business model. A statement from the board outlined plans for further expansion in existing markets and new territories including Japan, Switzerland, Germany and UAE in FY25. "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 statement read. The company also plans to identify further cost efficiencies and launch new products, while expanding within existing markets and geographically. As a result, it anticipates a significant reduction in losses in FY25, with the aim of generating profit from FY26 onwards. In October 2024, Pure Electric raised £2.27m through a crowdfunding campaign, exceeding its target by 227 per cent. The round attracted 874 investors, bringing the company's total investment to over £70m. Financial documents for PST Holdings, the parent company of Pure Electric, reveal a drop in turnover from £27.1m to £19.9m within the same financial year, while its pre-tax loss was reduced from £21.8m to £11.3m.