Carly Holdings (ASX: $CL8) H1 FY24 Financial Results

Carly Holdings Limited (ASX: $CL8) has reported its half-year financial results for the period ending 31 December 2023. The company recorded an 84.2% increase in operating revenue compared to the prior year period, reaching $1,622,627. However, the loss from continuing operations for the half-year was $2,141,366, higher than the loss of $1,618,522 in the same period last year. The net tangible (liabilities)/assets per share stood at (0.49) cents as of 31 December 2023, compared to 0.43 cents as of 31 December 2022.

Executive Commentary on H1 FY24 Performance

Carly Holdings Limited has continued to deliver strong revenue growth in H1 FY24 with subscription revenue growing to $1.57m, an increase of 91% vs H1 FY23. The company added a further 62 vehicles to its owned and financed fleet, representing growth of 18% vs H1 FY23. By 31 December 2023, Carly's total fleet reached 377 vehicles with 262 vehicles being owned or financed and the remaining 115 vehicles provided on an asset light basis by automotive manufacturers and dealers. The company has also 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's H1 FY24 results reflect a significant increase in operating revenue and subscription revenue, demonstrating the company's strategic objective to expand its owned fleet and diversify customer acquisition channels. The company's decision to finance the acquisition of vehicles has had a direct impact on the H1 FY24 gross profit through higher vehicle depreciation rate and general vehicle costs. Carly Holdings has also secured additional funding through the issuing of convertible notes and fully paid ordinary shares, providing the necessary resources to deliver substantial growth in fleet size and subscription revenue in the coming months. The Directors believe that the Group will be able to pay its debts as and when they become due and payable and to continue as a going concern, supported by the demonstrated ability to access various capital raising mechanisms. The company's focus for the second half of FY24 remains on the growth of the car subscription revenue stream, with an emphasis on the acquisition and supply of vehicles from multiple sources to meet the increasing demand from consumers and businesses, including the purchase of electric vehicles to cater to the rising interest in EVs.