Reasons for the difference between the forecasted and actual results of ELMO Rent AS for the financial year of 2022
ELMO Rent AS (hereinafter ELMO) hereby submits an explanation of the difference between the forecasts for the financial year of 2022 and the actual result.
In December 2021 – January 2022, the company carried out a second public offering of shares, within which the forecasted sales revenue for 2022 was increased to 3,481,704 euros with the assumed operational taxi service business direction. Based on the interim report for the second half-year of 2022, published on 31 March 2023 and as corrected on 16 June 2023, it can be concluded that the set sales forecast was not met and the loss was significantly higher than anticipated.
According to the preliminary assessment, ELMO’s sales revenue in 2022 is approximately 55% lower than the planned sales revenue, which was caused by the changes in the situation and circumstances that were the prerequisite for the forecasts, including changes in the business model (non-addition of a functioning taxi service and the sales revenue calculated from it) and compliance with the actions for the amount collected during the second public offering of shares for investments (if the maximum amount would have been met, ELMO could have acquired more new electric cars and thereby increased sales and reduced loss).
The forecasted loss for 2022, 682,473 euros, will be approximately 2.3 times higher due to the lower sales revenue (without operating taxi service sales revenue and the smaller than maximum amount of new electric cars purchased), development and marketing costs of remote-control technology and a new application of short-term rental service, plus cost related with technology sales in foreign markets. Operating costs that are higher than planned also include one-time costs of consulting and legal services related to raising additional capital. Sales revenue and loss forecast were estimated before the company made the decision not to acquire the taxi company and provide additional service.
More detailed information about the final results of the 2022 financial year will be presented by ELMO in the 2022 audited consolidated annual report which will be published no later than 30 June 2023.
For additional information please contact:
Enn Laansoo, Jr
Member of the Management Board
E-mail: enn@elmorent.ee
ELMO is an Estonian company whose main field of activity is the development of an innovative deep-tech technology for remotely controlled cars (see elmoremote.com) and the provision of eco-friendly car-sharing services (see elmorent.ee). ELMO is the first car rental company in Estonia to receive the quality label for sustainable business.
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