Kollect on Demand Holding AB (publ) issues a COVID-19 trading update for June 2020
Today on July 13, 2020, Kollect on Demand Holding AB (publ) (“Kollect” or the “Company”) issues a COVID-19 trading update for June 2020.
Kollect records its highest monthly revenue to date in June 2020.
Key Figures:
| Jun-20 | May-20 | Variance | Jun-19 | Variance | |||
| Revenue from Continuing Operations | SEK 4.25m | SEK 4.16m | 2% | SEK 2.4m | 74% | ||
| Total Revenue | SEK 4.25m | SEK 4.16m | 8% | SEK 3.0m | 40% | ||
| Cash | SEK 4.00m | SEK 1.85m | 116% | SEK 0.9m | 329% | ||
| Total Gross Margin | 40% | 36% | 4% | 43% | -3% |
Recurring revenue activities
Recurring revenues (which include Domestic and Commercial Bins and BIGbin activities) increased by approximately 20% compared to June 2019 and were up 5% on the prior month of May 2020.
There was a continued increase in revenues from Domestic Bins (up 8% on the prior month) due to continued customer retention and new customer acquisition as many annual contracts were renewed in June 2020.
Revenues from Commercial Bins were on a par with May 2020.
BIGbin revenues in June 2020 were up 13% on June 2019 and with a small increase on the prior month of May 2020, due to new sites that opened earlier in the year beginning to generate revenues.
Gross margins on Domestic and Commercial Bin collection activities in June 2020 increased over May 2020 by 5% and were down slightly on June 2019.
Non-recurring revenues
Non-recurring revenues (these include Skip (container) hire, Skip bags and Junk removal) increased by approximately 168% over June 2019 revenues and by approximately 2% over May 2020 revenues.
Revenues from Skip hire in June disappointed, with Commercial largely flat with May 2020, while Domestic skip hire was down month-on-month as more people returned to work as the economy re-opened.
Non-recurring revenue in June 2020 from Junk was up on prior month with continued investment in digital marketing helping to drive growth. Other non-recurring revenues were also helped by skip bag hire and a resumption of operations in the UK from 2 June 2020.
Working capital
The Company had SEK 4m cash on hand at the end of June, which was up from SEK 1.85m at the end of May 2020.
Kollect had previously announced that the unusually low cash figure at the end of May was due to a timing issue related to a short-term rolling finance facility used for working capital purposes.
The Company also continued to be in receipt of Irish Government employment support payments due to the COVID-19 pandemic in June 2020. The Company, however, is no longer in receipt of Government employment support payments with effect from the end of June 2020.
Kollect continues to minimise cash burn and the Directors are confident that the Company is well placed and has the requisite cash resources in order to meet ongoing requirements.
For further information, please contact:
John O’Connor, VD
+353 87-1218907
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).
Founded in Waterford, Ireland, Kollect is an innovator and disruptor in the waste industry. 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, container hire and junk removal such as furniture and other large objects. For more information, visit www.kollect.ie.