01.03.2024
AS Bercman Technologies (hereinafter “Bercman”) announces its unaudited consolidated results for the second half and 12 months of 2023. Bercman’s unaudited consolidated sales revenue for the second half-year of 2023 was EUR 800 108, compared to EUR 962 306 for the same period in 2022. Total consolidated turnover for 2023 was EUR 1 669 403 (2022: EUR 1 755 741). As of 2022, the consolidated sales results also include the turnover figures of the Bercman Group’s subsidiary Krakul OÜ (hereinafter “Krakul”).
New markets and expansion in existing markets
In the second half of 2023, in addition to servicing Estonian customers, development services were exported to Sweden, Finland, Singapore, the United States, Germany and the United Kingdom, with development services being sold to the German market for the first time.
In cooperation with Aerones, a Latvian developer of wind turbine maintenance robots, funding (for a total amount of EUR 80 000) was obtained for the development of a wind turbine lightning protection system maintenance robot within the framework of the European Union’s Silicon Eurocluster initiative.
The focus in development services was on the defence sector, and two new defence clients were added to the client portfolio. The share of medical technology and energy in the service portfolio is also on an upward trend.
On the proprietary side, smart crosswalks were exported and installed in Finland, Bosnia and Herzegovina, Scotland and Greece. In Estonia, an additional smart crosswalk was installed in Elva. Procurement of smart mobility infrastructure was carried out in Greece and Croatia, with the Croatian distributor focusing on the sale of hybrid energy-powered pedestrian crossings to be completed in Q2 2024. In Greece, tenders for the installation of smart pedestrian crosswalks in the cities of Lamia and Chaidar, were won. In addition to the existing markets, contacts were launched with the municipality of Barcelona for the installation of the first smart crosswalk.
At the beginning of the second half-year, a contract was signed for the construction of the Põlva smart road. The works under the contract were completed by the end of 2023. The Põlva smart road is a special solution for a 2.5 km stretch of road in the centre of Põlva, consisting of 14 Bercman smart crosswalks with statistics collection capabilities and an average speed measurement solution. In addition, an innovation project between Tehnopol and the city of Kohtla-Järve in Estonia completed the testing of an innovative smart crosswalk solution with a hybrid power supply and anonymised data collection capability.
To promote sales and map new business opportunities, Bercman participated in Estonia’s joint stand at the world’s largest technology fair, Gitex Global, in Dubai and the world’s largest smart city fair, Smart City Expo, in Barcelona. In addition, the Company’s team took part in the Oslo Innovation Week, the Eastern Sweden Innovation Week in Norrköping, the IPC EMS Day networking events in Tallinn and the Estonian Defence and Aerospace Industries Association’s information day in Paldiski.
Economic results
The reporting period ended with a loss of 250 465 euros (12 months 2022 the loss was EUR 731 282). As of 31.12.2023, the company’s balance sheet total was 1 744 169 euros (31.12.2022: EUR 2 008 262). Current assets amounted to 391 881 euros (31.12.2022: EUR 557 671). Fixed assets amounted to 1 352 287 euros (31.12.2022: EUR 1 450 591). The company’s equity as of 31.12.2022 was 1 117 466 euros (31.12.2022: EUR 1 468 769). As of 31.12.2023, the company had 54 398 euros in loan liabilities (31.12.2022: EUR 73 658).
The second half of the year was impacted by the reduction or suspension of development activities by existing clients in our client portfolio in response to the overall economic situation and difficulties in raising capital. In the context of the slowdown in client development activity, the focus was on optimising operating costs and improving the efficiency of the organisation’s operations. The second half of the year was positively impacted by an increase in sales of proprietary products.
Team
As of 31.12.2022, there is one member of the Management Board, three of the Supervisory Board in Bercman, and one of the Management Board in Krakul. In total, the Group employs 23 specialists in their field, and two external experts provide business development and sales support. The Group’s labour costs with labour taxes amounted to 1 040 848 euros (12 months 2022: EUR 1 336 499).
Mart Suurkask, CEO of Bercman: “The results for the second half of 2023 were impacted by a challenging economic environment. To counterbalance the reduction in development work volume from existing clients, we integrated strong industry experts from outside Estonia into our sales team and focused on diversifying our client portfolio, with an increased emphasis on the Nordic countries. Efficiency improvements and optimization of operating costs throughout the last financial year led to a threefold reduction in losses compared to the previous year. We expect this trend to continue into this year, maintaining a focus on product development services and the development and sale of proprietary products.”
Additional information:
Mart Suurkask
AS Bercman Technologies
Member of the Board
Telephone: +372 5340 2902
E-mail: mart.suurkask@bercman.com