APPENDIX 4D AND INTERIM FINANCIAL REPORT

ASX ANNOUNCEMENT

26 FEBRUARY 2020

APPENDIX 4D AND INTERIM FINANCIAL REPORT

Collaborate Corporation Limited (ASX:CL8) (Collaborate or the Company) is pleased to present its Appendix 4D and Interim Financial Report for the period ended 31 December 2019.

 

Collaborate continued to focus its strategy on the mobility and automotive industries, leveraging its capital-light business model and innovation ability to align with opportunities arising as a result of declining car sales and an increasing preference for access to vehicles instead of ownership and long-term financial commitment. The Carly vehicle subscription service continued to expand during the first half of the 2020 financial year (H1FY20), securing more subscribers and attracting significant partners including Suttons Motors, IMotor and Hyundai. Additional funding was secured through a partially underwritten nonrenounceable entitlement issue and strategic investment from respected fleet management and leasing company SG Fleet (ASX: SGF), following the strategic investment by Turners Automotive Group (ASX: TRA) in June 2019. During H1FY20, the Board welcomed Todd Hunter, CEO of Turners and Robbie Blau, CEO of SG Fleet as non-executive directors.  

 

Key initiatives announced or progressed during the period included: 

 

  • 3% increase in revenue as the business transitions from a reliance on highly seasonal car rental demand to more scalable and larger market potential car subscription model
  • 9.4% increase in gross profit  On 2 July 2019, Collaborate announced that it had raised $1 million (funds received
  • in June 2019) through a placement to a strategic investor, Turners Automotive Group Limited (ASX: TRA; NZX: TRA) 
  • Turners and Collaborate have agreed terms to launch Carly in New Zealand, currently scheduled for late March 2020 
  • $1.598 million of funding was raised through a partially underwritten nonrenounceable entitlement offer of shares and free-attaching options, which was supported by Collaborate’s investors, including Willoughby Capital and Turners Automotive Group. 
  • On 18 October 2019, Collaborate announced that an agreement had been signed with Hyundai Motor Company Australia to launch an Australian industry first vehicle subscription proposition that will enable customers to subscribe via Carly to vehicles provided by Hyundai dealers in Australia. 
  • Collaborate announced on 14 November 2019 that it raised $1.74 million through a placement to a strategic investor, SG Fleet Management Pty Limited, a subsidiary of SG Fleet, with a further $0.46 million invested upon conversion of options received under the Placement. SG Fleet is one of Australia’s leading specialist providers of fleet management, vehicle leasing and salary packaging services. Collaborate and SG Fleet will work together to accelerate the growth of Carly’s consumer demand channels for car subscription and leverage SG Fleet’s significant experience and relationships in the corporate and government markets. SG Fleet also commenced providing a fleet of vehicles into the Carly car subscription marketplace
 
Collaborate continues to direct its resources and strategic focus towards its mobility strategy given the large number of opportunities resulting from significant changes in the automotive industry and rapid evolution of the ways that consumers wish to access vehicles. Car subscription, which Frost & Sullivan has forecast to account for 10% of new car sales in USA & Europe in 2025, is an area of significant opportunity for Collaborate. Carly has been launched to capitalise on the opportunity in the current $60 billion p.a. car sales market in Australia. DriveMyCar continues to pursue opportunities in the car rental market, including private and rideshare rentals, and both Carly and DriveMyCar leverage the operations expertise, technical platform and industry relationships established by DriveMyCar
 

Authorised by:

 

Chris Noone
CEO and Director
Collaborate Corporation Limited

 

For more information please contact:

 

Chris Noone

CEO and Director

Collaborate Corporation Limited

E: shareholder@collaboratecorp.com

 

Jane Morey

Morey Media

E: jane@moreymedia.com.au

M: 0416 097 678

 

About Collaborate Corporation Limited
Collaborate Corporation Limited is listed on the Australian Securities Exchange (ASX:CL8). It is Australia’s leading listed company focused on providing innovative mobility solutions for consumers and the automotive industry. Collaborate operates www.DriveMyCar.com.au Australia’s leading peer-to-peer car rental business, and www.Carly.co, Australia’s first flexible car subscription service, supported by our proprietary PeerPass trust and reputation platform.

To read the full announcement, please open the PDF: