Interim (unaudited) Report of ELMO Rent AS for the first six months of 2022 financial year period ended 30 June 2022
Management report
The unaudited sales revenue of ELMO Rent for the first half of the year 2022 was 713,332 euros, which is more than three times the sales revenue of 230,672 euros in the first half of the year in 2021. The loss for the period was 817,328 euros (30 June 2021 loss: 185,842), which primarily results from the increase in costs related to the development and introduction of remote-control technology and labour costs. Short-term rental sales revenue increased 2.4 times (first half of 2021 vs first half of 2022 – 142,671 euros and 347,660 euros, respectively) and the service is profitable.
‘ELMO has grown in every way this year – the number of our employees has increased more than three times, we have acquired 25 new electric vehicles, better analytics and car fleet management have made it possible to increase the time the vehicles are rented to 41%, and short-term rental sales revenue has significantly increased compared to the same period last year. This all shows that we have made the right decisions as a company and as a team,’ said Enn Laansoo, Jr., major shareholder and CEO of ELMO Rent. ‘The end of summer has been an important milestone in terms of the development of remote-control technology – our service of providing the service with remote-control vehicles on the streets of Tallinn was approved by the Transport Administration. In terms of software, we see strong export potential. This is evidenced by the spring tour in France and Germany, where we received a warm welcome from both local experts and the media. In September, we will introduce the technology on the US market.’
As at 30 June 2022, the balance sheet volume of ELMO Rent was 3,574,449 euros (30 June 2021: 3,048,945 euros), which increased by 17% compared to the same period of 2021. Current assets made up 1,109,917 euros of assets (30 June 2021: 1,076,287 euros) or 31.1% of total assets. Fixed assets made up 2,464,532 euros (30 June 2021: 1,972,658 euros) or 68.9% of the balance sheet total. The total liabilities of ELMO Rent were 2,256,704 euros (30 June 2021: 2,085,962 euros) and the equity capital of the company was 1,317,745 euros (30 June 2021: 962,983 euros).
Remote-control technology makes it possible to make the vehicle sharing service significantly more efficient, because the car is delivered to the customer in a cost-effective way. The company already provides the service of ordering a car to your door (currently a physical driver brings the car to the customer), and the number of users of the service is growing rapidly every month. ‘This allows us to keep vehicles in more frequent use and also helps to keep the cityscape cleaner, because cars do not just stand on the streets. Green thinking is in the DNA of our company, both in the development of technology and in the provision of daily vehicle sharing services,’ said Laansoo Jr.
3,701 new customers joined ELMO Rent in the first half of the year, which is 6.6 times more than during the previous period (554 in the first half of 2021) . As at the end of July, ELMO Rent had nearly 19,000 customers.
ELMO Rent AS grew the workforce of the company by more than 367%. As at June 30 2022, the company had 28 employees 2 management board members and 3 members of the supervisory council. Labour costs (including taxes) in the first half of 2022 were 302,377 euros (first half of 2021: 35,708 euros).
The management board of the company hired several people during the summer – Raoul Järvis started working as the IT development manager. He was the original creator of Taxipal, one of the first and most awarded taxi booking mobile applications in the world. The activities of ELMO in France and Germany were launched by Kristiina Kaldmaa, whose previous experience at Enterprise Estonia, embassies, and Business France supports the plans of ELMO to expand outside of Estonia. Raili Somelar, with a fintech background and international experience, will lead the marketing of remote-controlled vehicle technology. The management of the company was taken over by Enn Laansoo, Jr., major shareholder of ELMO Rent and a pioneer in the green field.
‘The plan for the second half of the year is to start offering the service with remote-control electric vehicles, launch the taxi service, and come up with a renewed brand and application. We are constantly analysing and developing the market and its service portfolio with the aim of ensuring innovation and growth of business volumes. Expanding the service and product portfolio and entering a new customer segment gives ELMO Rent the prerequisite to achieve the set goals,’ said Laansoo Jr.
In order to develop remote-control technology and rental services of a new generation, ELMO Rent is raising capital from private investors in two stages within the framework of non-public placings in the second half of the year. The company will use the raised capital mainly to bring remote-control vehicle technology to the streets and expand to foreign markets, but also to expand the car fleet and enter the taxi service market.
As of 30 June 2022, the loan commitments amounted to 463,472 euros (30 June 2021: 266,033), while cash and cash equivalents came to 105,926 euros (30 June 2021: 757,148). Operating cash flow for the first 6 months of 2022 was a loss of 698,717 euros (30 June 2021 loss: 5,943).
ELMO Rent AS is an Estonian company whose main field of activity is the provision of an environmentally friendly vehicle sharing service and the development, launch, and scaling of related environmentally friendly and innovative technologies, such as the IT operating systems of the vehicle fleet, car controllers, and remote-controlled vehicles.
Consolidated Balance Sheet
(EUR)
|
Description |
30.06.2022 |
30.06.2021 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash |
105,926 |
757,148 |
|
Receivables and prepayments |
986,877 |
319,139 |
|
Inventories |
17,114 |
0 |
|
Total current assets |
1,109,917 |
1,076,287 |
|
Fixed assets |
|
|
|
Property, plant and equipment |
2,464,532 |
1,972,658 |
|
Total property, plant and equipment |
2,464,532 |
1,972,658 |
|
Total fixed assets |
2,464,532 |
1,972,658 |
|
Total assets |
3,574,449 |
3,048,945 |
|
|
|
|
|
Liabilities and equity |
|
|
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Loans payable |
463,472 |
266,033 |
|
Payables and prepayments |
342,098 |
299,276 |
|
Total current liabilities |
805,570 |
565,309 |
|
Long-term liabilities |
|
|
|
Loans payable |
1,451,134 |
1,520,653 |
|
Total long-term liabilities |
1,451,134 |
1,520,653 |
|
Total liabilities |
2,256,704 |
2,085,962 |
|
Equity |
|
|
|
Share capital at nominal value |
245,636 |
220,000 |
|
Share premium |
2,286,645 |
934,333 |
|
Other reserves |
10,000 |
10,000 |
|
Retained earnings (loss) |
-407,208 |
-15,508 |
|
Profit (loss) for financial year |
-817,328 |
-185,842 |
|
Total equity |
1,317,745 |
962,983 |
|
Total liabilities and equity |
3,574,449 |
3,048,945 |
Consolidated Income Statement
(EUR)
|
|
2022 |
2021 |
|
|
First half-year |
First half-year |
|
Sales revenue |
713,332 |
230,672 |
|
Other operating revenue |
25,274 |
72,500 |
|
|
|
|
|
Goods, raw materials and services |
-629,016 |
-184,390 |
|
Miscellaneous operating expenses |
-341,162 |
-75,235 |
|
Staff costs |
-302,377 |
-35,708 |
|
Depreciation and impairment of fixed assets |
-226,678 |
-119,995 |
|
Other operating charges |
-1,788 |
-14,222 |
|
Operating profit (loss) |
-762,415 |
-318,301 |
|
Interest expenses |
-54,940 |
-59,467 |
|
Other financial income and expenses |
27 |
3 |
|
Profit (loss) before income tax |
-817,328 |
-185,842 |
|
Profit (loss) for reporting period |
-817,328 |
-185,842 |
Consolidated Cash Flow Statement
(EUR)
|
|
2022 |
2021 |
|
|
First half-year |
First half-year |
|
Cash flow from operating activities |
|
|
|
Operating profit (loss) |
-762,415 |
-126,378 |
|
Adjustments |
|
|
|
Depreciation and impairment of fixed assets |
226,678 |
119,995 |
|
Profit (loss) on sales of fixed assets |
195,257 |
-13,883 |
|
Other adjustments |
-31,639 |
-3,816 |
|
Total adjustments |
390,296 |
102,296 |
|
Change in receivables and prepayments related to operating activities |
-338,695 |
-94,198 |
|
Change in inventories |
0 |
-15,984 |
|
Change in liabilities and prepayments related to operating activities |
12,101 |
128,321 |
|
Total cash flow from operating activities |
-698,717 |
-5,943 |
|
Cash flow from investment activities |
|
|
|
Paid upon acquisition of property, plant and equipment, and intangible assets |
-283,636 |
-279,080 |
|
Received from sales of property, plant and equipment, and intangible assets |
15,000 |
18,917 |
|
Paid upon acquisition of subsidiaries |
0 |
0 |
|
Received from sales of subsidiaries |
0 |
0 |
|
Loans granted |
-2 |
0 |
|
Total cash flow from investment activities |
-268,634 |
-260,463 |
|
Cash flow from financing activities |
|
|
|
Loans raised |
0 |
459,625 |
|
Repayments of loans raised |
-110,105 |
-188,646 |
|
Financial lease principal repayment |
-160,157 |
-215,961 |
|
Interest paid |
-52,661 |
-59,463 |
|
Received from issue of shares |
1,367,733 |
0 |
|
Other proceeds from financing activities |
0 |
0 |
|
Total cash flow from financing activities |
1,044,810 |
981,248 |
|
Total cash flow |
77,459 |
714,842 |
|
Cash and cash equivalents at the beginning of period |
28,467 |
42,306 |
|
Change in cash and cash equivalents |
77,459 |
714,842 |
|
Cash and cash equivalents at the end of period |
105,926 |
757,148 |
Consolidated Statement of Changes in Equity
(EUR)
|
|
Share capital at nominal value |
Share premium |
Other reserves |
Retained earnings (loss) |
Minority interest |
Total |
|
31.12.2019 |
|
|
90,250 |
-17,923 |
|
72,327 |
|
Profit (loss) for reporting period |
|
|
0 |
2,310 |
|
2,310 |
|
Changes in reserves |
|
|
-80,250 |
|
|
-80,250 |
|
Other changes in equity |
2,500 |
|
|
|
404 |
2,904 |
|
30.06.2020 |
2,500 |
|
10,000 |
-171,884 |
|
-159,384 |
|
Profit (loss) for reporting period |
|
|
|
|
|
|
|
Changes in reserves |
|
|
|
|
|
|
|
31.12.2020 |
2,500 |
|
10,000 |
-15,613 |
404 |
-5,209 |
|
Profit (loss) for reporting period |
|
|
|
-185,842 |
|
-185,842 |
|
Share capital issued |
217,500 |
934,334 |
|
|
|
|
|
Dividends declared |
|
|
|
|
|
|
|
Changes in reserves |
|
|
|
104 |
-404 |
-300 |
|
30.06.2021 |
220,000 |
934,334 |
10,000 |
-201,351 |
0 |
962,983 |
|
Profit (loss) for reporting period |
|
|
|
-205,857 |
|
-205,857 |
|
Share capital issued |
|
|
|
|
|
|
|
Dividends declared |
|
|
|
|
|
|
|
Changes in reserves |
|
-14,489 |
|
|
|
|
|
31.12.2021 |
220,000 |
918,913 |
10,000 |
-407,208 |
0 |
741,705 |
|
Profit (loss) for reporting period |
|
|
|
-817,328 |
|
-817,328 |
|
Share capital issued |
25,636 |
1,367,732 |
|
|
|
1,393,368 |
|
Dividends declared |
|
|
|
|
|
|
|
Changes in reserves |
|
|
|
|
|
|
|
30.06.2022 |
245,636 |
2,286,645 |
10,000 |
-1,224,536 |
0 |
1,317,745 |
A more detailed overview of the results of ELMO Rent AS for the first half of 2022 can be found in the attached document.
Additional information:
Enn Laansoo Jr
CEO, member of the management board
enn@elmorent.ee
|