Allego(ALLG)2023-11-27 16:00Financial Performance - Total revenue from contracts with customers for Q3 2023 was €28.607 million, a 28.4% increase from €22.320 million in Q3 2022[3] - Gross profit for Q3 2023 was €5.403 million, compared to a gross loss of €4.566 million in Q3 2022[3] - Operating loss for the nine months ended September 30, 2023, was €57.015 million, significantly improved from €278.345 million in the same period of 2022[3] - Loss for the period for Q3 2023 was €43.118 million, compared to €21.498 million in Q3 2022, indicating a 100.5% increase in losses year-over-year[6] - Total comprehensive loss for Q3 2023 was €38.483 million, compared to €24.326 million in Q3 2022[6] - For the nine months ended September 30, 2023, the company reported a loss of €81,829,000, compared to a loss of €268,269,000 for the same period in 2022, indicating a significant reduction in losses[12] - Total comprehensive loss for the nine months ended September 30, 2023, was €83,611,000, compared to €271,130,000 for the same period in 2022, reflecting improved financial performance[12] Assets and Liabilities - Total assets as of September 30, 2023, were €440.369 million, slightly up from €437.659 million as of December 31, 2022[8] - Non-current liabilities increased to €376.045 million as of September 30, 2023, from €318.223 million at the end of 2022[8] - Cash and cash equivalents decreased to €28.829 million from €83.022 million since the end of 2022[8] - Equity attributable to equity holders of the Company was negative €49.336 million as of September 30, 2023, down from positive €27.013 million at the end of 2022[8] - As of September 30, 2023, total equity was reported at €(48,826,000), a decrease from €70,430,000 as of September 30, 2022, reflecting ongoing financial challenges[12] - The Group's total available credit facility was increased to €400,000 thousand, with €77,390 thousand remaining undrawn as of September 30, 2023[29] - The Group's borrowings increased to €312,160 thousand as of September 30, 2023, compared to €269,033 thousand at December 31, 2022[26] Cash Flow and Investments - Cash generated from operations for the nine months ended September 30, 2023, was a negative €32,914,000, an improvement from a negative €89,640,000 in 2022[14] - The company incurred net cash flows used in investing activities of €45,739,000 for the nine months ended September 30, 2023, compared to €88,421,000 in 2022, indicating reduced investment outflows[14] - Investments in property, plant, and equipment amounted to €43,070 thousand for the nine months ended September 30, 2023, down from €116,590 thousand in the same period of 2022, reflecting a decrease of approximately 63%[80] - The carrying amount of property, plant, and equipment increased to €157,509 thousand as of September 30, 2023, compared to €134,718 thousand at December 31, 2022, marking an increase of about 17%[79] Share-Based Payments - The company reported share-based payment expenses of €81,184,000 for the nine months ended September 30, 2022, which is a significant cost impacting overall financial results[12] - The total fair value of the share-based payment arrangement as of September 30, 2023 is estimated at €49,958 thousand, an increase from the grant date value of €32,250 thousand[50] - Share-based payment expenses for the three months ended September 30, 2023 amounted to €15,028 thousand, compared to a gain of €421 thousand for the same period in 2022[52] - The Group recognized total share-based payment expenses of €21,551 thousand for the nine months ended September 30, 2023, significantly up from €2,187 thousand in the same period of 2022[52] Financing and Capital Structure - The company has relied heavily on funding from bank financing and equity issuance to support its growth strategy, including a €400 million facility agreement to enhance financial stability[25] - The Group recorded an impairment loss of €321 thousand for the nine months ended September 30, 2023, down from €678 thousand in the same period of 2022, indicating a reduction of about 53%[82] - The issued share capital increased to €32,142 thousand as of September 30, 2023, from €32,061 thousand at December 31, 2022, reflecting a growth of approximately 0.25%[84] Future Outlook and Strategy - The company expects to continue incurring losses in the next twelve months, typical for the industry as it expands its EV charging network[25] - The Group's liquidity forecasts indicate sufficient cash flow to fund expected outflows for the next 12 months, despite the need for additional financing for long-term growth[30] - The Group's liquidity management policy includes maintaining sufficient cash and committed credit facilities, with undrawn borrowing facilities of €77,390 thousand as of September 30, 2023[134] Risk Management - The Group's management oversees financial risk management, supported by the Finance department, with no significant changes compared to the previous period[122] - The Group's exposure to equity securities price risk is mitigated by monitoring quarterly valuation updates and forecasts of future cash flows[129] Warrants and Share Exchange - As of September 30, 2023, the Group had 13,799,948 public warrants outstanding, with no private placement warrants[143] - On October 3, 2023, the Group completed an exchange offer, issuing 2,996,918 ordinary shares for 13,029,838 public warrants tendered[143] - The remaining 770,110 public warrants were exchanged for 159,712 ordinary shares, effective October 18, 2023[143]