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Published: 2023-08-28 08:00:00 CEST
Bercman Technologies
Company Announcement

AS Bercman Technologies 2023 first half-year unaudited consolidated interim report

Management report

AS Bercman Technologies (hereinafter Bercman) announces its unaudited consolidated results for the first half of 2023. Bercman's unaudited consolidated sales revenue for the first six months of 2023 was EUR 869 295, compared to EUR 793 435 for the same period in 2022. As of 2022, the consolidated sales results also include the turnover figures of the Bercman Group's subsidiary Krakul OÜ (hereinafter “Krakul”).

New markets and expansion in existing markets

In the first half of 2023, Bercman's proprietary smart city products, specifically smart pedestrian crosswalks, were delivered to export markets in Greece, the UK, Croatia, Bosnia and Herzegovina, and Australia. Additionally, smart safety systems were installed in Kohtla-Järve, Estonia. Procurements for smart transport infrastructure projects were participated in Greece, Croatia, Slovakia, Finland, and Estonia, the results of these procurements will be published in most cases during the second half of the year.

Krakul continued its work on long-term client projects and expanded its client portfolio to include development service clients from both Estonia and international markets. Services were exported during the first half of the year to Sweden, Switzerland, the United Kingdom, the United States, and Singapore.

To further expand our export network, we organized our participation in the world's largest B2B industrial fair in Hannover in April and the European Defence Fund programme networking event in Brussels in June.

Economic results

The reporting period ended with a loss of 160 384 euros (the first half of 2022 a loss of EUR 440 173). As of 30.06.2023, the company's balance sheet total was 1 773 760 euros (30.06.2022: EUR 2 161 362). Current assets amounted to 475 867 euros (30.06.2022: EUR 633 827). Fixed assets amounted to 1 297 893 euros (30.06.2022: EUR 1 527 535). The company's equity as of 30.06.2022 was 1 204 433 euros (30.06.2022: EUR 1 470 490). As of 30.06.2023, the company had 72 023 euros in loan liabilities (30.06.2022: EUR 210 797).

Macroeconomically, the first six months of 2023 have been impacted by the volatile business environment in the technology sector, leading the company to adopt a more conservative stance in both revenue forecasting and cost management. The optimization of operating costs and the conservative approach to cost and development plans have contributed to reducing the company's losses compared to the previous year. 

Team

As of June 30, 2023, Bercman has one management board member, and three supervisory board members, and Krakul has one board member, with a total of 21 specialists in the Group's employ in their respective fields. The Group's labour costs, including labour taxes, amounted to 572 825 euros in the first half of 2023 (6 months in 2022: 714 707 euros).

The financial results for the reporting period are presented below.

Consolidated statement of financial position
(in Euros)

  30.06.2023 31.12.2022 30.06.2022 31.12.2021 Note
Assets          
Current assets          
Cash and cash equivalents 89 596 254 657 309 473 378 023  
Receivables and prepayments 322 265 221 986 239 958 158 412 2
Inventories 64 006 94 612 84 396 123 143 3
Total current assets 475 867 571 255 633 827 659 578  
Non-current assets          
Property, plant and equipment 27 966 32 175 39 092 37 110 6
Intangible assets 1 269 927 1 056 115 1 488 443 1 448 259 7
Total non-current assets 1 297 893 1 088 290 1 527 535 1 485 369  
Total assets 1 773 760 1 659 545 2 161 362 2 144 947  
Liabilities and equity          
Liabilities          
Current liabilities          
Loan liabilities 72 023 73 659 210 797 28 472 8
Payables and prepayments 482 311 512 934 430 882 462 666 9
Provisions 4 168 4 168 41 809 4 168  
Government grants 7 000 7 000     10
Total current liabilities 565 502 597 761 683 488 495 306  
Non-current liabilities          
Loan liabilities 3 825 3 825 7 384 4 822 8
Total non-current liabilities 3 825 3 825 7 384 4 822  
Total liabilities 569 327 601 586 690 872 500 128  
Equity          
Equity held by shareholders and partners in parent company          
Issued capital 143 903 143 903 134 135 129 847 11
Unregistered equity 0 0 0 0 11
Share premium 2 412 758 2 412 758 2 129 474 1 868 788 11
Other reserves 462 619 143 262 474 792 473 922 11, 16
Retained earnings (loss) -1 654 463 -867 738 -827 738 -234 486  
Annual period profit (loss) -160 384 -774 226 -440 173 -593 252  
Total equity held by shareholders and partners in parent company 1 204 433 1 057 959 1 470 490 1 644 819  
Total equity 1 204 433 1 057 959 1 470 490 1 644 819  
Total liabilities and equity 1 773 760 1 659 545 2 161 362 2 144 947  

 

Consolidated income statement
(In Euros)

  30.06.2023 30.06.2022 Note
Revenue 869 295 793 435 12
Other income 0 0 13
Work performed by entity and capitalised 0 103 126 7
Raw materials and consumables used -162 076 -239 031 14
Other operating expense -204 041 -288 989 15
Employee expense -572 825 -714 707 16
Depreciation and impairment loss (reversal) -84 016 -88 030 6,7
Other expense -3 526 -1 214  
Operating profit (loss) -157 189 -435 410  
Interest expenses -3 300 -4 448  
Other financial income and expense 105 -315  
Profit (loss) before tax -160 384 -440 173  
Annual period profit (loss) -160 384 -440 173  
Profit (loss) from shareholders and partners in parent company -160 384 -440 173  

 

Consolidated statement of cash flows
(in Euros)

  30.06.2023 31.12.2022 30.06.2022 31.12.2021 Note
Cash flows from operating activities          
Operating profit (loss) -157 189 -759 185 -435 410 -583 081  
Adjustments          
Depreciation and impairment loss (reversal) 84 016 222 838 88 030 75 938 6,7
           Profit (loss) from the sale of fixed assets 0 1 317 1 317 0  
Other adjustments 15 806 -46 286 870 -39 770 10,11
Total adjustments 99 822 177 869 90 217 36 168  
Changes in receivables and prepayments related to operating activities -108 440 -55 415 -81 545 -52 517  
Changes in inventories 30 606 28 531 38 747 -19 994  
    Changes in payables and prepayments related to          operating activities  -30 623 37 580 2 558 48 715  
Interest received 106 26 16 24  
Proceeds from government grants 8 160 23 920 0 38 596 10
Total cash flows from operating activities -157 558 -546 674 -385 417 -532 089  
Cash flows from investing activities          
Purchase of property, plant and equipment and intangible   assets -1 368 -172 869 -127 853 -178 807 6,7
Received from property, plant and equipment and intangible assets 0 83 83 0  
Total cash flows from investing activities -1 368 -172 786 -127 770 -178 807  
Cash flows from financing activities          
Loans received 0 216 900 200 000 156 100  
Repayments of loans received 0 -172 961 -17 265 -114 346  
Interest paid -3 300 -2 379 -1 432 -3 642  
    Repayments of finance lease liabilities -2 835 -3 492 -1 591    
Proceeds from issuing shares 0 558 026 264 974 975 985 11
   Other cash outflows from financing activities 0 0 -49 0  
Total cash flows from financing activities -6 135 596 094 444 637 1 014 097  
Total cash flows -165 061 -123 366 -68 550 303 201  
Cash and cash equivalents at beginning of period 254 657 378 023 378 023 9 727  
Change in cash and cash equivalents -165 061 -123 366 -68 550 303 201  
Cash and cash equivalents at end of period 89 596 254 657 309 473 312 928  

 

Consolidated statement of changes in equity
(in Euros)

  Equity held by shareholders and partners in parent company  
 
  Issued capital Unregistered equity Share premium Other reserves       Retained earnings (loss) TOTAL
31.12.2021 129 847 0 1 868 788 473 922 -827 738 1 644 819
Annual period profit (loss)         -456 403 -456 403
Issue of equity 4 288 0 260 686     264 974
Changes in reserves       870   870
30.06.2022 134 135 0 2 129 474 474 792 -1 284 141 1 454 260
Annual period profit (loss)         -357 823 -357 823
Issue of equity 9 768 0 283 284     293 052
Changes in reserves       15 420   15 420
Changes in equity       -346 950   -346 950
31.12.2022 143 903 0 2 412 758 143 262 -1 641 964 1 057 959
Annual period profit (loss)         -160 384 -160 384
Issue of equity            
Changes in reserves       15 806   15 806
Changes in equity       303 551 -12 499 291 052
30.06.2023 143 903 0 2 412 758  462 619 -1 814 847 1 204 433

 

Management assessment

The company had no pending legal proceedings, tax or other disputes during the financial year or at the time of submitting the report.

According to the board's assessment, the company's operations were still affected by the Ukraine-Russia war and an overall economic slowdown in the first six months of 2023. However, this reality has been considered, and efforts are being made daily to capitalize on new growth opportunities. 

Bercman adheres to the revenue forecasts published at the beginning of 2023 and does not make any changes. Bercman forecasts consolidated sales revenue of 2,1 million euros for the 2023 fiscal year and 2,5 million euros for 2024.

 

The Bercman Group consists of the domestically owned companies AS Bercman Technologies and Krakul OÜ. Bercman is a technology company listed on the Nasdaq First North alternative market and develops and sells its proprietary products. Its subsidiary Krakul is a leading Estonian IoT and autonomous systems developer with a long and diversified experience in hardware and software services.

 

Additional information:

         Mart Suurkask
         AS Bercman Technologies
         Member of the Board
         Telephone: +372 5340 2902
         E-mail: mart.suurkask@bercman.com


AS Bercman Technologies 2023 I HY consolidated unaudited interim report.pdf