Carly Holdings Limited (ASX:CL8) (Carly or the Company) is pleased to present its Appendix 4E and Annual Report for the year ended 30 June 2021 (FY21).

Carly Holdings started the year with a strong focus on opportunities in the developing car subscription market, driven by the growth potential and its proven resilience during the COVID19 pandemic. Accordingly, Carly reduced the focus on peer-to-peer car rental and rideshare rental as both revenue streams exhibited greater volatility during lockdown and COVID-19 restrictions and presented lower growth potential, relative to car subscription. The subscription revenue stream increased by 65% in June 2021 vs June 2020 and increased from 45% of rental & subscription receipts in June 2020 to 68% in June 2021. Average subscription retention period increased from 5 months in September 2020 to 5.7 months in June 2021, further evidence of the appeal of car subscription, even during turbulent economic times.

On 27 August 2020, Carly car subscription secured a product ruling from the Australian Taxation Office (ATO) that provides a clear framework for Carly subscribers using cars for business or work purposes to claim tax deductions. The ATO Product Ruling is exclusive to Carly and sets the benchmark for the car subscription category. As a result, Carly is the only car subscription offering that can currently provide certainty of tax deductibility on car subscription payments.

On 23 September 2020, Turners Automotive Group (ASX: TRA; NZX: TRA), Carly’s third
largest shareholder, launched Turners Subscription in New Zealand. The car subscription
proposition is supported by the Carly subscription platform under a licensing agreement and follows Turners’ $1 million strategic investment in Collaborate in July 2019. Carly generates income from a platform licence fee based on subscription revenue, and from custom technology development and the provision of other services to Turners Subscription.

While demand for car subscription increased in FY21 the full growth potential of Carly Car
Subscription, DriveMyCar and rideshare rentals was not achieved due to restricted supply of vehicles. The COVID-19 pandemic has caused significant disruption to global automotive supply chains which has resulted in a deficit of new cars in Australia and a substantial increase in the price of used cars. The limited supply of vehicles is being experienced by automotive dealers, corporate fleets and Carly alike. During this challenging period Carly has been successful in retaining its core fleet of vehicles provided by automotive manufacturers, dealers and fleet management organisations, however during FY21 it was difficult to secure significant additional vehicles to keep pace with the level of demand. Despite this, vehicle supply agreements were signed with the Alto Group, Genesis Motors Australia and Ringwood Mazda. Hyundai Motor Company Australia also expanded their cooperation with Carly via the addition of electric and hybrid vehicles.

During the year a new subsidiary of Carly Holdings was established to own and finance a portion of the vehicles on our platform. As part of the diversified vehicle supply strategy, 16 new and used Toyota, Kia, Hyundai and MG vehicles were ordered in June 2021 for delivery in July and August 2021. Carly anticipates being able to secure additional vehicles via an additional financing facility over the coming months.

The Company completed a number of corporate actions during the year, including:

• a Small Holdings Sale Facility on 6 July 2020 to enable shareholders with small holdings to sell their shares and to seek to reduce administrative costs following which the Company had a total of 769 shareholders;
• the change of name from Collaborate Corporation Limited to Carly Holdings Limited on 15 December 2020 to better reflect the links between the core operations of the business and the parent company’s identity and leverage increasing awareness of the Carly brand; and
• a 25-for-1 consolidation of capital on 2 December 2020 to implement a more appropriate capital structure for the Company going forward.
  
  

Additional funding was secured for the group via a partially underwritten 1-for-3 nonrenounceable entitlement issue completed in October 2020 raising $2.35 million before costs and a renounceable rights issue and placement completed in May 2021 raising $4.85 million before costs. Both capital raisings were supported by major shareholders, Willoughby Capital and SG Fleet (ASX:SGF), and completion of Tranche 2 of the Placement ($0.65 million, before costs) is subject to prior shareholder approval the 2021 Annual General Meeting.

Subsequent to balance date, the controlled placement deed with Acuity Capital dated 10 January 2019 for up to $3.00 million of equity expired on 31 July 2021. On 6 August 2021, the Company announced that it had entered in a buy-back agreement with Acuity Capital in respect of 800,000 collateral shares (on a post-consolidation basis) issued under the controlled placement deed. Subject to receipt of shareholder approval at the 2021 Annual General Meeting, the Company will buy-back and cancel the collateral shares for nil consideration.

The Company plans to hold the 2021 Annual General Meeting on 18 November 2021. The deadline to receive director nominations is 24 September 2021.

This announcement was authorised to be given to ASX by the Board of Directors of Carly Holdings Limited.

Authorised by:

Chris Noone
CEO and Director
Carly Holdings Limited

For more information please contact:

Chris Noone
CEO and Director
Carly Holdings Limited
E: shareholder@carly.co

About Carly Holdings Limited

Carly Holdings Limited (ASX:CL8) investors.carly.co/ is listed on the Australian Securities Exchange. It is Australia’s leading listed company focused on providing innovative mobility solutions for consumers and the automotive industry. Carly Holdings 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.