Waterford, Ireland – 26 February 2020, Kollect On Demand AB (publ) (“KOLLECT”), (Nasdaq: KOLL), is pleased to publish its Q4 2019 Interim Report.

The Full Report can be viewed by clicking here

Highlights

• Revenue for continuing operations in Q4 2019 amounted to 8,725k SEK, which was up 100% on Q4 2018 revenue of 4,357k SEK.
• Q4 2019 revenue of 9,121k SEK, compared to 6,404k SEK in Q4 2018. This represents an increase of 52%.
• Losses before tax amounted to 5,317k SEK in contrast to profit before tax of 742k SEK in Q4 2018.
• Gross margin for the quarter remained strong at 30%, which compared to a gross margin of 43% in Q4 2018.
• In the quarter, the Company borrowed 3m SEK as bridge financing through the IPO in December 2019

Full year highlights (January to December 2019)

• Overall revenue growth year-on-year of 54%;
• Revenue for continuing operations increased by 68%;
• Overall gross margin improved from 28% for the full year in 2018 to 38% for the full year 2019; and
• Continued investment in staffing with headcount from 25 at December 2018 to 40 at end of December 2019.

Events in the Quarter

The Company listed on the Nasdaq First North Growth Market on 19 December 2019 raising 18.4m SEK in total. As a result of the administration of the share registration and bank holdings at the end of the year, net IPO proceeds were not received into the bank account until after the quarter end which gives rise to the cash balance below. In anticipation of the IPO, the Company arranged a bridge finance loan of 3m SEK to be repaid on or before 24 January 2020.

The Company also exited from a business relationship in Ireland because of differences regarding customer service levels between Kollect and our waste collection partner, (from now on reported as “discontinued operations”). The relationship had caused excessive administrative expenses arising from service issues. As a result, the Company has reorganised staffing in a more productive manner and to focus on continuing operations and provide continued excellent customer service. This had a positive impact to gross margins in continuing operations.

After the Quarter End
Since the end of the quarter, the Company:

• repaid the bridge loan of 3m SEK on 10 January 2020;

• has rolled out BIGbin to new Circle K sites in Caherdavin and Enniscorthy;

• hired its first Business Development executive in Manchester and as part of its UK expansion, commenced operations in a second metropolitan city, Bury; and

• commenced its Carbon Neutral programme by acquiring carbon offsets for every collection made.

Key Figures

CEO Comments
On the Q4 Report, CEO John O’Connor stated: “With our IPO on 19 December 2019, the Company took a major step closer to its mission of making it simple for customers to have waste collected and recycled globally, whilst enabling a more sustainable world. We thank particularly all those investors who supported our IPO and continue to hold or trade our shares and we welcome new investors.

Clearly, the IPO required a big effort from the executive team during the quarter and I wish to thank my co-founders John and Robbie, our CFO Jamie Walsh, all the management team and our employees, our Board and our advisers for their full support through the process. Now that the listing is out of the way, the management team and employees are wholly focused again on growing the business across all verticals.

We’re pleased to report that in Q4 2019, we continued to see significant growth in our Irish business, particularly in the Junk and Container (Skip) verticals. Early in the quarter, we reassessed our activities in waste collection and decided to withdraw from certain business lines with low gross margins. These activities were also taking up a disproportionate amount of customer service and other resources. By exiting that business line, we were able to redirect our resources to higher margin business.

In the waste drop off vertical, the Company entered a significant contract with Circle K to install BIGbins (drop-off waste compactor bins) on 13 new sites in 2019/20. We have already rolled out to two of those sites and are working on rolling out to the next tranche of sites.

We also built on our entry to the United Kingdom market in September 2019 with revenues growing to 200k SEK in what was our first full quarter in Salford metropolitan city area. Since the end of the Quarter, we have also expanded into the Bury metropolitan city area and hired a full-time business development person.

The Company continues to keep a tight control of costs, while seeking to take advantage of growth opportunities as they arise. Where we have options, we continue to focus on the higher margin business.”

The Full report is available on Kollect’s investor site and can be viewed by clicking here.

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For further information, please contact:
John O’Connor, CEO
+353 871 218 907
john@kollect.ie
www.kollect.ie

About Kollect
Founded in Waterford, Ireland, Kollect is an innovator and disruptor in the waste industry listed on the Nasdaq First North Growth Market (symbol: KOLL) and Mangold Fondkommission AB is the Company’s acting Certified Adviser (Tel. + 46 8 5030 1550, CA@mangold.se, www.mangold.se).
The Company services two types of customers: those who arrange to have waste collected (bins, skips or junk removal) via the online Kollect booking engine; and those who use BIGbin smart compactor bins for waste drop-off.

The services include domestic door-to-door bin collection, commercial bin collection, skip (container) hire and junk removal such as furniture and other large objects. For more information, visit www.kollect.ie.

This information is information that Kollect on Demand is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2020-02-26 09:50 CET.

Attachments

KOLL Interim Report October December 2019
KOLL SWE Interim Report October December 2019