Carly Holdings Limited (ASX: $CL8) Half Year Results Overview

Carly Holdings Limited (ASX: $CL8) has reported a significant increase in Revenue and Gross Profit for the six month period ended 31 December 2023 (H1 FY24). The company witnessed an 84% increase in Revenue to $1,622,000 and a 38% increase in Gross Profit to $444,062. Carly's strategic objective to increase the size of the owned fleet, retain a higher proportion of receipts as revenue, and diversify customer acquisition channels has contributed to the strong revenue growth in H1 FY24.

Executive Commentary on H1 FY24 Performance

Carly has continued to deliver strong revenue growth in H1 FY24, driven by the strategic objective to increase the size of the owned fleet, retain a higher proportion of receipts as revenue, and diversify customer acquisition channels. The company added a further 62 vehicles to its owned and financed fleet, representing growth of 18% vs H1 FY23. Carly has also focused on financing the acquisition of vehicles to align with the types of vehicles most in demand by subscription customers and reduce reliance on the asset light model. The investment made in expanding the fleet has had a direct impact on the H1 FY24 gross profit through the higher vehicle depreciation rate and general vehicle costs. Carly has increased its Australian based staff levels by 3, with all roles customer facing and focused on growing the subscriber base, particularly corporate customers and managing the handover of vehicles.

Summary of H1 FY24 Results and Outlook

Carly Holdings Limited (ASX: $CL8) has reported a strong uplift in Revenue and Gross Profit for H1 FY24, driven by strong demand for car subscription services and the favourable economics of the expanding fleet of owned and financed vehicles. The company's strategic objective to increase the size of the owned fleet, retain a higher proportion of receipts as revenue, and diversify customer acquisition channels has contributed to the strong revenue growth. Carly's focus on the growth of the car subscription revenue stream, with a major emphasis on the acquisition and supply of vehicles from multiple sources to meet the level of demand from consumers and businesses, indicates a positive outlook for the company. Additionally, the purchase of electric vehicles for the first time demonstrates Carly's commitment to supporting the transition to electric vehicles and catering to the increasing demand from individuals and corporates seeking to trial EVs.