CORRECTION: ELMO Rent AS audited annual report 2021

Elmo Rent
company announcement

CORRECTION: ELMO Rent AS audited annual report 2021

The consolidated annual report for 2021 in English is attached

The supervisory board of ELMO Rent AS (hereinafter ELMO) has approved the company’s audited annual report for 2021.

Differences from unaudited interim reports

This year ELMO’s annual report was audited for the first time during which all accounting entries were reviewed. This resulted in some differences in the financial results of the audited annual report compared to the unaudited interim reports for the first and second half of 2021 published on September 22, 2021 and March 31, 2022. The most significant one-time effect was the recognition a grant in the amount of 374 thousand euros received from Enterprise Estonia (EAS) in December 2021, which was not recognized in the interim reports, as a receivable on the balance sheet and as other operating income in the income statement. Other changes result from the reorganization of accounting over time.

Following the amendments, the key figures of the audited annual report have changed compared to the interim reports of 2021 as follows (balance sheet figures as of 31.12.2021, total income statement figures in 2021, figures have been rounded):

current assets in the annual report 699 thousand euros, in the interim report 329 thousand euros;

fixed assets in the annual report 2,311 thousand euros, in the interim report 2,306 thousand euros;

balance sheet total in the annual report 3,011 thousand euros, in the interim report 2,635 thousand euros;

total liabilities in the annual report 2,269 thousand euros, in the interim report 2,190 thousand euros;

shareholders’ equity in the annual report 742 thousand euros, in the interim report 445 thousand euros;

turnover in the annual report 1,109 thousand euros, in the interim reports a total of 1,102 thousand euros;

other operating income in the annual report 581 thousand euros, in the interim reports a total of 256 thousand euros;

operating loss in the annual report -208 thousand euros, in the interim reports a total of -445 thousand euros;

loss for the reporting period in the annual report -309 thousand euros, in the interim reports a total of -562 thousand euros.

2021 operations and financial results

In 2021, through a successful IPO, ELMO has increased its investments in various technologies – fleet management software, car controllers and remote control car development. A nationwide car-sharing app for environmentally friendly vehicles was also developed in 2021, and a one-stop rental car booking service was launched in the second half. During the service, the customer can (initially within Harjumaa) reserve a vehicle at a location of their choice and it will be delivered to them by the vehicle fleet operator. This service also validates the application for the introduction of remote-controlled cars. In addition, the car-sharing service for Premium class cars and electric two-wheelers has been opened as a new service.

The first prototype of a remote-controlled car has already passed the first part of the Transportation Administration’s on-site test in late 2021 and is ready to join the traffic to collect additional test miles in the second stage. To accelerate technology development, cooperation with Telia Eesti AS started in November 2021, with the aim of using 5G network for communication between the control desk and the remote control car. Additionally, in December 2021, Enterprise Estonia (EAS) also supported ELMO with 374,094 euros for the development of remote control technology.

However, the company’s growth and development has not been limited to software and technology development. In 2021, ELMO’s vehicle fleet grew to 131 units.

Compared to the end of 2020, the fixed assets of the company have increased by 90% or up to 2,311,162 euros. The growth in fixed assets was financed mainly by the funds received from the IPO and raised by loans and leases, which brought the company’s debt to 2,268,924 euros at the end of the period.

Additional financial liabilities also resulted in increased interest expense. The interest charges in 2021 amounted to 100,950 euros, in 2020 the interest charges were 77,014 euros.

ELMO’s net revenue in 2021 was €1,109,311, which exceeded 2020 net revenue by 147%. It is important to note that the estimated revenue for 2021 was 934,651 euros, which increased to 1,075,768 euros in December of the same year, according to the results of October 2021. We believe that the growth would have been significantly faster if we had not been affected by delays in delivery of electric cars and electric two-wheelers. The new vehicles arrived in smaller numbers and later than the company expected.

The financial year ended with a loss of 308,528 euros. The loss is mainly due to the rapid expansion of the company, including the strong growth in the number of employees and the preparatory costs necessary for further development.

The larger amount received after the successful IPO allowed more staff to be recruited than expected (mainly technology development, fleet operations) and led to higher labor costs. In 2021 the labor costs amounted to 289,682 euros and in 2020 they were 39,134 euros. The company’s team is made up of 22 employees, 1 member of the Management Board and 3 members of the Supervisory Board.

In total, ELMO’s 2021 EBITDA was €109,777, while 2020 EBITDA was €197,618.

The consolidated annual report of ELMO Rent AS for 2021 and the auditor’s statement are attached to the notice and will be available on the company’s website

Allan Leppikson

Crew member

[email protected]

Attachments :
31 05 2022 Appendix 1 ELMO Rent AS Annual Report for 2021.pdf

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