Carly Holdings Limited (ASX:CL8) is pleased to present its consolidated cash flow report and business update for the quarter ended 30 June 2023.
Carly has continued to deliver on key objectives, achieving a material increase in fleet size while maintaining high fleet utilisation which delivered an 83% increase in subscription revenue YOY. Following on from a strong March 2023 Quarter, subscription revenue increased by a further 12% in the June 2023 Quarter. Having secured an asset finance facility of up to $10 million in the March 2023 Quarter, $2.2 million has already been drawn and used in purchasing new vehicles, with the majority of these vehicles being delivered towards the end of the June 2023 Quarter.
Key highlights include: 83% increase in Subscription Revenue vs June 2022 Quarter and 12% increase vs
March 2023 Quarter
Average Monthly Subscription Revenue reached $212,000 per month in the quarter ($189,000 March 2023 Quarter) - another new record for the business. This performance represents an Annualised Run Rate of >$2.5 million.
Customer Receipts exceeded $1m for the quarter, up 11% on the March 2023 Quarter and up 25% vs June 2022 Quarter Ongoing focus on cash management with a 14% reduction in Net Cash Used (excluding R&D Tax Refund of $127,000) compared to June 2022 Quarter.
The business strategy to increase the number of owned and financed vehicles, which deliver higher contributions than asset-light vehicles, continues to deliver a proportionally higher share of revenue. Owned and financed vehicles comprised 66% of the fleet at June 2023, compared to 56% at the end of March 2023. Carly continues to engage with asset-light vehicle providers with a view to the ongoing development and growth of the asset-light fleet. Recent additions to the asset-light fleet include the Ioniq 5 and Ioniq 6 electric vehicles provided by Hyundai Australia.
Utilisation of Asset Finance Facility of up to $10 million
Carly is focused on developing a portfolio of owned, financed and asset-light vehicles in order to have a range of options to access vehicles during different market supply situations, as well as to achieve better control over vehicle availability and fleet size. As announced to ASX on 22 March 2023, Carly successfully closed its largest ever asset finance facility, with iPartners providing up to $10 million of vehicle financing, which if fully drawn down, would enable the purchase of up to 450 vehicles which would generate approximately $4.7 million in annual revenue @ 87% utilisation. At the end of the March 2023 Quarter, Carly activated the iPartners facility, initially drawing $0.7 million to acquire pre-ordered vehicles in April. Several draw downs were made in the quarter resulting in a total of $1.5 million being received under the facility during the June 2023 Quarter, enabling Carly to add a total of 66 vehicles across the June 2023 Quarter. Despite the addition of these new vehicles, which take time to be subscribed out and therefore contribute towards revenues, Carly was able to achieve a vehicle utilisation rate of 84% across the June 2023 Quarter, just below its target rate of 85% (June 2023 monthly utilisation rate was 85%). Post 30 June 2023, Carly received a fourth draw down of $0.8 million taking the facility to $3m drawn down. Carly expects to receive delivery of a further 34 vehicles in July/early August 2023 and forward orders are in place for additional vehicles. With access to the iPartners facility, Carly will continue to balance the growth of the fleet with the aim of maintaining a vehicle utilisation rate above 85%. This approach will ensure that the business optimises its marketing spend and maintains a low vehicle storage cost for under-utilised vehicles.
Cash Balance at Quarter End and Funding
At the end of the June 2023 Quarter, the Company maintained a cash balance of $1,663,000, an increase of $701,000 from the March 2023 Quarter. On 16 June 2023, the Company completed Tranche 1 of an oversubscribed $1.6 million placement to sophisticated and professional investors and existing shareholders . The Company issued 50,000,000 fully paid ordinary shares at an issue price of $0.025 per share raising $1.25 million pursuant to Tranche 1 of the Placement. The Shares were issued utilising the Company's existing capacity under Listing Rules 7.1 and 7.1A. Subscribers under the Placement will receive free-attaching quoted options on a 1-for-2 basis, exercisable at $0.06 per option, with an expiry date of 31 October 2024 (CL8O Options). Shareholder approval will also be sought at an EGM on 26 July for the issue of 14,000,000 Shares under Tranche 2 of the Placement and a total of 32,000,000 CL8O Options under the Placement. Subject to all necessary regulatory and shareholder approvals, Carly directors Chris Noone and Stephen Abolakian will participate in Tranche 2 of the Placement (total $0.08m).
During the month of July 2023, subject to Shareholder approval, the Company is expecting to complete the Tranche 2 Placement which will result in the issue of 14 million shares at an issue price of $0.025 per share, raising an additional $350,000. The Directors closely monitor cash flows and funding requirements and are assessing all funding alternatives to ensure that the Company can continue to pursue the growth opportunities of the businesses. The Directors are very conscious of the cash flow requirements of the Group but also seek to ensure that funding is accessed at appropriate valuations so as to preserve value and limit dilution for all shareholders. This announcement was authorised to be given to ASX by the Board of Directors of Carly Holdings Limited
Contact:
Email: shareholder@carly.co
About Carly Holdings Limited
Carly Holdings Limited (ASX:CL8) investors.carly.co/ is listed on the Australian Securities Exchange. It is Australia's leading listed company focused on providing innovative mobility solutions for consumers and the automotive industry. Carly Holdings operates www.Carly.co, Australia's first flexible car subscription service
CARLY HOLDINGS LIMITED 
