LETTER TO INVESTORS
December 24, 2021
We are approaching the end of the year, and the 19th December marked two years since we listed on the Nasdaq First North.
2021 has been another year of restrictions and lockdowns, though I am proud of the results that we were able to produce in spite of this. In our Q3 report we maintained our track record of consistent quarterly revenue growth and year on year growth of 58% which was especially pleasing given the challenging circumstances.
To have done so in a cost efficient manner, is something in which we take particular pride. At the same time, we retained strong gross margins and executed on our strategy with a consistent focus on increasing recurring revenue. We are a fast growing company, and investing in this growth has
been a big part of our journey so far. I’m pleased that our revenue continued to grow by a much higher rate than our losses.
During the year, we also laid the foundations of our 2024 strategy and its four main pillars:
Growth – Organic growth through geographic expansion and new products, supported by an M&A strategy
Online – Driving business online and self-service for all customers and suppliers
Technology – Making sure technology is at the source of each process and customer relationship
Efficiency – Constantly improving cost effectiveness across the business
We will execute on this strategy as a well capitalized company following the successful warrant raise during the summer. With a 99% subscription rate, I was delighted to welcome a host of new investors into the company, as well as seeing a number of early and existing shareholders continue their investment in the Company.
I see a great opportunity for us going forward across all business verticals and we are also committed to trying and testing the roll out of new products. This year also saw the successful roll out of our partnership programme in Ireland where we have developed our own network of junk providers who are able to fulfil junk collections whilst growing the Kollect brand and ensuring that we retain the excellent customer service which is at the core of our business.
Central to our growth, will be our technology development. The Corona pandemic has acted as a catalyst and people are increasingly becoming used to online shopping, and making orders online. We are at the front of changing bringing a traditionally offline industry, online, and I think we are well positioned to deliver on this growth. It’s important for me too, that we can do this whilst continuing to provide excellent customer service - which I’m proud we have been able to do.
I am also excited about the opportunity in the BIGbin vertical. In November 2020, we also completed the successful acquisition of a BIGbin competitor and have seen the value of this transaction throughout 2021. Whilst we now sit as the only waste drop off company in Ireland, we see further growth in the BIGbins through new site development. The partnership with Circle K is an exciting one, and one which we expect to spur our growth in the future. We are currently on 35 sites, but believe there are up to 300 potential sites in Ireland alone. The orders for new bins and parts which we have placed this year will start to support the growth next year and I am looking forward to our growth on new sites next year.
We have finished 2021 off by being recognized as Deloitte as the 20th fastest growing technology company in Ireland, in the Deloitte Fast 50 rankings We were joined on this list by a great number of Irish technology companies and the achievement is recognition of the work which we have put in so far, and to the significant opportunity which is in front of us.
Finally, I’d like to thank our customers, suppliers, investors and our employees for all your support this year and wish you all Seasonal Greetings and the very best for 2022.
John O' Connor, CEO.