The first quarter of the year, like Q4 2022, has been characterized by major changes in the company's operations. Several public electric carpools have been closed down in all countries in order to complete the action plan the company decided after a comprehensive analysis of each individual pool's financial conditions last autumn. This means that Move About's core business is starting to represent an increasing share of revenues and thus also improved earnings.
Since the initiatives were started in Q4 2022, some 70 electric cars have left the group while sales are at a stable level compared to previous quarters in 2022, and significantly higher than Q1 2022. The result for Q1 includes an EO cost of SEK 2.4 million for the rights issue in February. Although the rights issue restored equity after Q4 2022 and the interest-bearing liabilities were reduced, the company's liquidity is strained. The Board of Directors has initiated a strategic review of operations to secure financial needs.
"The Q1 report is satisfactory as the efficiency measures we implemented during the winter are now starting to bite. This without losing sales on the top line, which is a result of our corporate business growing at the same time as our public offering has been reduced. At the same time, it is of course not satisfactory that the costs for the company's transformation have been higher than estimated. Due to the market situation, we have not been able to renegotiate all leases from 36 to 60 months duration. Combined with higher interest rates on remaining leases and high cost increases in general, I can only conclude that we have not managed to turn the company into profit yet. However, we believe that the industrial value of the company is significant and that our strategic review of the business will realize this value", says Olof Jonasson, CEO of Move About Group AB.
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Olof Jonasson, CEO of Move About Group AB (publ.)
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The Company's Certified Adviser is Mangold Fondkommission AB.
About Move About Group AB
Move About offers app-based, environmentally friendly and cost-effective mobility solutions to individuals, companies, municipalities and organizations. The Company has developed and owns all intellectual property rights to the cloud-based green tech platform that provides digital access to electric cars, electric bicycles, taxis, subway and parking, all through the same app - around the clock. Every kilometre that the user travels with the electric cars via the platform means reduced CO2 emissions. The Company's comprehensive mobility solutions are based on the Move About app, which gives the user access to the Company's pools of electric cars, bicycles and scooters. Move About also helps companies, municipalities and organizations optimize their fleets by tailoring mobility solutions to their needs. Move About was founded in Oslo, Norway, in 2007 and has approximately 70,000 users on its platform and over 800 electric cars in its vehicle fleet with a presence in Sweden, Norway and Germany.