Grimsby’s flagship green tech start-up, Myenergi, looks set to significantly cut back its workforce after the brakes were put on five years of phenomenal growth.
It is understood that around 100 jobs - almost a quarter of the workforce - could be made redundant as the cost of living crisis is blamed for a slowdown in sales. Named one of the UK’s fastest growing companies less than a year ago, new orders of its staple Zappi electric vehicle charger and allied devices haven’t been maintained at anticipated levels, with the removal of consumer incentives also cited.
Grimsby Town’s principal sponsor, close to completing its state-of-the-art manufacturing plant alongside its new Stallingborough headquarters, currently employs almost 450 people. Launched by Lee Sutton, chief executive, and Jordan Brompton, chief marketing officer, it attracted backing from investment house head Bill Currie and former Tesco CEO Sir Terry Leahy to help advance the rapid scale-up.
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Recognised by The Sunday Times last summer as the ninth fastest growing company in the UK, the 216 per cent lift in the year to June 2022 saw sales top £50 million, with operating profits of £15 million.
But as the multi-award winning company prepares to welcome the team to Pioneer Park - from the former Wickes outlet on Grimsby’s Alexandra Retail Park where it set up temporary production after outgrowing the initial Stallingborough build during the planning phase - formal consultations have begun.
A spokesperson for Myenergi said: “Myenergi has experienced unrivalled levels of growth in one of the world’s fastest growing sectors, and has always aimed to scale its resources and teams to meet the needs of the market. However, challenges arising from the macro-economic environment, including the cost of living crisis; as well as lower than expected growth in our largest electric vehicle charge point markets - due to the removal of consumer incentives - means that growth is not forecast to be as high as expected.
“While overall demand for our products remains high, the level of recruitment undertaken to deliver a backlog in orders now appears to be too high relative to current demand, and we are having to adjust the scale of our resourcing accordingly.
“The current scale of the business is not at a level that we believe can be sustained in the short term, if we are to remain competitive and able to invest in the future. We have therefore had to take the enormously difficult decision to identify a number of roles that are at risk of redundancy and enter into a collective consultation period.
“This is not a decision that we ever envisaged or wanted to be making, but it is sadly one that we believe is necessary based on the reality of current market conditions. We remain confident about Myenergi’s future and committed to our role in the region, including manufacturing.”
The company said it was at the very start of what is understood to be a 45-day process, and that no decisions about numbers have been made, with the company and staff exploring any alternative proposals.
It comes just a month after the firm secured a £30 million funding facility with HSBC, with the 500,000th product shipped in early April. At the time Mr Sutton told how the one millionth would be out of the door in 2025.
Alongside English Football League Two side Grimsby Town, it also sponsors McMurtry Automotive, the manufacturer of a record-breaking electric supercar, and a team in the Extreme-E off-road racing championship, as the brand is given maximum exposure in key markets.
Myenergi's success has opened many doors recently too. Mrs Brompton has recently been invited to Downing Street and had an audiece with Bill Gates to discuss the UK's green-tech acceleration.
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