Forev - Power to go further

Through its network of electric vehicle (EV) charging points, Forev is a sustainable business helping deliver a low carbon transport system for Scotland, that will benefit all.

Forev is helping safeguard Scotland's future as a place to be explored and enjoyed for generations to come. 

Forev is developing and building a network of public charging-points for electric vehicles across Scotland. Forev will own, operate, and maintain the points with the overarching aim of supporting the decarbonisation of the transport sector which will have a positive impact on public health and wellbeing.

Forev - electric vehicle charging point

Investment of up to £20 million

Low carbon transition

and electric vehicle charging infrastructure

Equity investment

Located across Scotland

More on the Forev website

There are currently approximately 1,250 public charge-points in Scotland. It is anticipated that there will be a minimum demand for 8,000 of these points in Scotland by 2030 with the expectation that the number of electric vehicles in the country will rise from 11,000 today to around 1 million.

In preparation for the mass adoption of electric vehicles, Forev’s initial strategy will be to install around 320 fast, rapid, and ultra-rapid charge-points in Scotland by the end of 2022.

Further investment of up to £15 million will deliver another 1200 charge-points through organic growth and acquisition by 2026, giving Forev a 30% share of the expected market. Forev fully expect the utilisation figures to be significantly higher on their charge points than that of the CPS network due to the choice of site locations and the fact that the CPS network was never built out to generate revenues.

Scotland-wide network

Having fully reviewed the emerging market opportunity and the associated risks, Forev have entered the market as an owner and operator of a network of publicly accessible fast and rapid chargers.

The business has installed its first charge-points in Glasgow and is generating revenues from these. The company aims to have almost all its charge points directly connected to Scotland’s electricity distribution network. This will allow it to purchase electricity competitively on the wholesale market and will simplify the future sale of the business at an appropriate stage.

Forev use charging equipment and operational and billing platforms provided by SWARCO eVolt, a market leading provider of smart charging and traffic technology solutions.

Pinpointing the right locations

Given the strategic importance of charge-point locations, Forev have developed several strategic relationships, some of which are exclusive, with key property developers and industry representative bodies. These agreements incentivise the company’s partners to identify high quality sites, accelerating the growth of its network throughout Scotland.

Forev will enter into formal leases with the landowner at each charger location. Lease terms are expected to be between 10 and 15 years at each site.

Forecast growth

The company aim to build out its network over a five-year period. By the end of year 3 it is expected that the network will be two thirds complete, by which point the business is forecast to be EBITDA positive.

To date, Forev have assembled a group of experienced staff and directors with the skills, connections and electricity network knowledge to:

  • Enable a faster and cheaper roll-out of the EV charging infrastructure
  • Manage the business in the early stages and beyond
  • Recruit further experienced staff as and when required

Investment opportunity

The initial round equity raise requirement is c.£5 million, which will accelerate growth through providing working capital to a proven business model. The initial capital raised by Forev will be deployed into:

  • Capital expenditure – the business will fund the majority of its capital expenditure through asset finance or grant income, but some costs will be funded from investment proceeds
  • Working capital - to fund site development and construction costs until commissioning is complete when grants can be claimed and asset finance drawn down
  • Overheads – to cover the overheads associated with delivering first c.650 charge-points

The company anticipates being EBITDA positive within three years of the initial investment. Year five EBITDA is forecast to be  around £12 million. This earnings profile will generate an expected post-tax IRR of around 35%, with a return on investment expected to be a multiple range of between 5/8 times the initial investment.

More on the Forev website

 

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Whereas every effort has been made to ensure that the information in these pages is accurate, Scottish Enterprise and Scottish Development International does not accept any liability for errors, omissions or misleading statements. And no warranty is given, or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Investors will need to undertake their own due diligence in conjunction with individual project promoters/sponsors in relation to the detailed project investment opportunities presented.