AS Bercman Technologies 2023 second half-year and 12 months consolidated unaudited interim report
AS Bercman Technologies (hereinafter “Bercman”) announces its unaudited consolidated results for the second half and 12 months of 2023. Bercman's unaudited consolidated sales revenue for the second half-year of 2023 was EUR 800 108, compared to EUR 962 306 for the same period in 2022. Total consolidated turnover for 2023 was EUR 1 669 403 (2022: EUR 1 755 741). 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 second half of 2023, in addition to servicing Estonian customers, development services were exported to Sweden, Finland, Singapore, the United States, Germany and the United Kingdom, with development services being sold to the German market for the first time.
In cooperation with Aerones, a Latvian developer of wind turbine maintenance robots, funding (for a total amount of EUR 80 000) was obtained for the development of a wind turbine lightning protection system maintenance robot within the framework of the European Union's Silicon Eurocluster initiative.
The focus in development services was on the defence sector, and two new defence clients were added to the client portfolio. The share of medical technology and energy in the service portfolio is also on an upward trend.
On the proprietary side, smart crosswalks were exported and installed in Finland, Bosnia and Herzegovina, Scotland and Greece. In Estonia, an additional smart crosswalk was installed in Elva. Procurement of smart mobility infrastructure was carried out in Greece and Croatia, with the Croatian distributor focusing on the sale of hybrid energy-powered pedestrian crossings to be completed in Q2 2024. In Greece, tenders for the installation of smart pedestrian crosswalks in the cities of Lamia and Chaidar, were won. In addition to the existing markets, contacts were launched with the municipality of Barcelona for the installation of the first smart crosswalk.
At the beginning of the second half-year, a contract was signed for the construction of the Põlva smart road. The works under the contract were completed by the end of 2023. The Põlva smart road is a special solution for a 2.5 km stretch of road in the centre of Põlva, consisting of 14 Bercman smart crosswalks with statistics collection capabilities and an average speed measurement solution. In addition, an innovation project between Tehnopol and the city of Kohtla-Järve in Estonia completed the testing of an innovative smart crosswalk solution with a hybrid power supply and anonymised data collection capability.
To promote sales and map new business opportunities, Bercman participated in Estonia's joint stand at the world's largest technology fair, Gitex Global, in Dubai and the world's largest smart city fair, Smart City Expo, in Barcelona. In addition, the Company's team took part in the Oslo Innovation Week, the Eastern Sweden Innovation Week in Norrköping, the IPC EMS Day networking events in Tallinn and the Estonian Defence and Aerospace Industries Association's information day in Paldiski.
Economic results
The reporting period ended with a loss of 250 465 euros (12 months 2022 the loss was EUR 731 282). As of 31.12.2023, the company's balance sheet total was 1 744 169 euros (31.12.2022: EUR 2 008 262). Current assets amounted to 391 881 euros (31.12.2022: EUR 557 671). Fixed assets amounted to 1 352 287 euros (31.12.2022: EUR 1 450 591). The company's equity as of 31.12.2022 was 1 117 466 euros (31.12.2022: EUR 1 468 769). As of 31.12.2023, the company had 54 398 euros in loan liabilities (31.12.2022: EUR 73 658).
The second half of the year was impacted by the reduction or suspension of development activities by existing clients in our client portfolio in response to the overall economic situation and difficulties in raising capital. In the context of the slowdown in client development activity, the focus was on optimising operating costs and improving the efficiency of the organisation's operations. The second half of the year was positively impacted by an increase in sales of proprietary products.
Team
As of 31.12.2022, there is one member of the Management Board, three of the Supervisory Board in Bercman, and one of the Management Board in Krakul. In total, the Group employs 23 specialists in their field, and two external experts provide business development and sales support. The Group's labour costs with labour taxes amounted to 1 040 848 euros (12 months 2022: EUR 1 336 499).
The financial results for the reporting period are presented below.
Consolidated statement of financial position
(in Euros)
|
|
31.12.2023 |
30.06.2023 |
31.12.2022 |
30.06.2022 |
|
Assets |
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cash and cash equivalents |
218 262 |
89 596 |
260 157 |
309 473 |
|
Receivables and prepayments |
122 922 |
322 265 |
206 665 |
239 958 |
|
Inventories |
50 697 |
64 006 |
90 849 |
84 396 |
|
Total current assets |
391 881 |
475 867 |
557 671 |
633 827 |
|
Fixed Assets |
|
|
|
|
|
Receivables and prepayments |
32 293 |
0 |
0 |
0 |
|
Property, plant and equipment |
23 161 |
27 966 |
32 175 |
39 092 |
|
Intangible assets |
1 296 833 |
1 269 927 |
1 418 416 |
1 488 443 |
|
Total non-current assets |
1 352 287 |
1 297 893 |
1 450 591 |
1 527 535 |
|
Total Assets |
1 744 168 |
1 773 760 |
2 008 262 |
2 161 362 |
|
Liabilities and equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Loan liabilities |
54 398 |
72 023 |
73 658 |
210 797 |
|
Payables and prepayments |
510 011 |
489 311 |
417 715 |
430 882 |
|
Provisions |
4 168 |
4168 |
44 295 |
41 809 |
|
Total current liabilities |
568 577 |
565 502 |
535 668 |
683 488 |
|
Non-current liabilities |
|
|
|
|
|
Loan liabilities |
23 323 |
3 825 |
3 825 |
7 384 |
|
Payables and prepayments |
34 803 |
0 |
0 |
0 |
|
Total non-current liabilities |
58 126 |
3 825 |
3 825 |
7 384 |
|
Total liabilities |
626 703 |
569 327 |
539 493 |
690 872 |
|
Equity |
|
|
|
|
|
Equity held by shareholders and partners in parent company |
|
|
|
|
|
Issued capital |
143 903 |
143 903 |
143 903 |
134 135 |
|
Share premium |
2 412 758 |
2 412 758 |
2 412 758 |
2 129 474 |
|
Other reserves |
486 076 |
462 619 |
486 169 |
474 792 |
|
Retained earnings (loss) |
-1 663 864 |
-1 654 463 |
-827 738 |
-827 738 |
|
Annual period profit (loss) |
-261 407 |
-160 384 |
-746 323 |
-440 173 |
|
Total equity held by shareholders and partners in parent company |
1 117 466 |
1 204 433 |
1 468 769 |
1 470 490 |
|
Total equity |
1 117 466 |
1 204 433 |
1 468 769 |
1 470 490 |
|
Total liabilities and equity |
1 744 169 |
1 773 760 |
2 008 262 |
2 161 362 |
Consolidated income statement
(in Euros)
|
|
2023 |
2023
II half-year |
2022 |
2022
II half-year |
|
Revenue |
1 669 403 |
800 108 |
1 755 741 |
962 306 |
|
Other income |
19 394 |
19 394 |
17 450 |
17 450 |
|
Work performed by entity and capitalised |
0 |
0 |
157 075 |
53 949 |
|
Raw materials and consumables used |
-373 815 |
-211 738 |
-587 847 |
-348 816 |
|
Other operating expense |
-348 628 |
-144 587 |
-506 627 |
-217 638 |
|
Employee expense |
-1 040 848 |
-468 091 |
-1 336 499 |
-621 792 |
|
Depreciation and impairment loss (reversal) |
-167 783 |
-83 767 |
-224 870 |
-136 840 |
|
Other expense |
-8 190 |
-4 391 |
-5 705 |
-4 491 |
|
Operating profit (loss) |
-250 465 |
-93 071 |
-731 282 |
-295 872 |
|
Interest expenses |
-11 524 |
-7 857 |
-14 741 |
-10 293 |
|
Other financial income and expense |
583 |
273 |
-300 |
15 |
|
Profit (loss) before tax |
-261 407 |
-100 656 |
-746 323 |
-306 150 |
|
Annual period profit (loss) |
-261 407 |
-100 656 |
-746 323 |
-306 150 |
|
Profit (loss) from shareholders and partners in parent company |
-261 407 |
-100 656 |
-746 323 |
-306 150 |
Consolidated statement of cash flows
(in Euros)
|
|
2023 |
2023
II half-year |
2022 |
2022
II half-year |
|
Cash flows from operating activities |
|
|
|
|
|
Operating profit (loss) |
-250 467 |
-93 071 |
-731 282 |
-295 872 |
|
Adjustments |
|
|
|
|
|
Depreciation and impairment loss (reversal) |
167 783 |
83 767 |
224 870 |
136 840 |
|
Profit (loss) from the sale of fixed assets |
0 |
0 |
1 317 |
0 |
|
Other adjustments |
-40 875 |
-149 257 |
-4 674 |
-5 496 |
|
Total adjustments |
126 908 |
-65 490 |
221 513 |
131 344 |
|
Changes in receivables and prepayments related to operating activities |
66 771 |
219 018 |
-48 253 |
33 293 |
|
Changes in inventories |
43 915 |
13 309 |
32 294 |
-6 453 |
|
Changes in payables and prepayments related to operating activities |
-16 479 |
57 376 |
-17 512 |
-20 070 |
|
Interest received |
583 |
473 |
34 |
18 |
|
Proceeds from government grants |
12 394 |
12 394 |
16 920 |
16 920 |
|
Total cash flows from operating activities |
-16 375 |
144 008 |
-526 286 |
-140 820 |
|
Cash flows from investing activities |
|
|
|
|
|
Purchase of property, plant and equipment and intangible assets |
-3 090 |
-1 721 |
-187 749 |
-59 896 |
|
Received from property, plant and equipment and intangible assets |
0 |
0 |
83 |
0 |
|
Total cash flows from investing activities |
-3 090 |
-1 721 |
-187 666 |
-59 896 |
|
Cash flows from financing activities |
|
|
|
|
|
Loans received |
0 |
0 |
200 000 |
0 |
|
Repayments of loans received |
-8 859 |
- 8 859 |
-156 061 |
-138 796 |
|
Interest paid |
-3 252 |
-2 412 |
-2 387 |
-955 |
|
Repayments of finance lease liabilities |
-4 819 |
-2 350 |
-3 492 |
-1 901 |
|
Proceeds from issuing shares |
0 |
0 |
558 026 |
293 052 |
|
Total cash flows from financing activities |
-16 930 |
- 13 621 |
596 086 |
151 400 |
|
Total cash flows |
-36 395 |
128 666 |
-117 866 |
-49 316 |
|
Cash and cash equivalents at beginning of period |
254 657 |
89 596 |
378 023 |
309 473 |
|
Change in cash and cash equivalents |
-36 395 |
128 666 |
-117 866 |
-49 316 |
|
Cash and cash equivalents at end of period |
218 262 |
218 262 |
260 157 |
260 157 |
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) |
|
|
|
|
-440 173 |
-440 173 |
|
Issue of equity |
4 288 |
|
260 686 |
|
|
264 974 |
|
Changes in reserves |
|
|
|
870 |
|
870 |
|
30.06.2022 |
134 135 |
0 |
2 129 474 |
474 792 |
-1 267 911 |
1 470 490 |
|
Annual period profit (loss) |
|
|
|
|
-306 150 |
-306 150 |
|
Issue of equity |
9 768 |
|
283 284 |
|
|
293 052 |
|
Changes in reserves |
|
|
|
11 377 |
|
11 377 |
|
31.12.2022 |
143 903 |
0 |
2 412 758 |
486 169 |
-1 574 061 |
1 468 769 |
|
Annual period profit (loss) |
|
|
|
|
-160 384 |
-160 384 |
|
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 |
|
Annual period profit (loss) |
|
|
|
|
-93 071 |
-93 071 |
|
Changes in reserves |
|
|
|
23 457 |
|
23 457 |
|
Changes in equity |
|
|
|
0 |
-17 353 |
- 17 353 |
|
31.12.2023 |
143 903 |
0 |
2 412 758 |
486 076 |
-1 925 271 |
1 117 466 |
Mart Suurkask, CEO of Bercman: “The results for the second half of 2023 were impacted by a challenging economic environment. To counterbalance the reduction in development work volume from existing clients, we integrated strong industry experts from outside Estonia into our sales team and focused on diversifying our client portfolio, with an increased emphasis on the Nordic countries. Efficiency improvements and optimization of operating costs throughout the last financial year led to a threefold reduction in losses compared to the previous year. We expect this trend to continue into this year, maintaining a focus on product development services and the development and sale of proprietary products."
Bercman, founded in 2016, is a technology company traded on the Nasdaq First North alternative market, offering development services, proprietary products and comprehensive technology solutions. The Bercman consolidation group comprises the parent company AS Bercman Technologies and its subsidiary, Krakul OÜ.
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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