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
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