Kollect reports rise in revenues as Covid-19 hits waste collections
Start-up refocuses sales on construction sites as Irish economy slowly reopens
Kollect founder and chief executive John O’Connor
Waterford waste start-up Kollect saw pretax losses widen in the first three months of the year as revenues jumped.
The company, which listed on Scandinavia’s Nasdaq First North stock exchange last December, was founded by John O’Connor. It allows businesses and consumers to arrange waste collection online.
Kollect reported a strong performance during the first quarter with revenues up 98 per cent to €834,000 and gross profits rising 63 per cent to €320,000.
It said however, that the Covid-19 crisis had impacted the company’s business from early March onwards leading it to implement a costs savings plan. This including temporarily lay off some staff, introducing voluntary pay cuts for management and availing of State supports.
Kollect said that as waste removal is considered an essential service, the company has been able to continue operations. Revenues from domestic collections and waste drop-off and junk removals were above target for March. However, with many businesses temporarily shuttered, commercial bin collections and skip hire turnover was lower.
Recurring revenues from domestic and commercial bin and so-called “bigbin” activities were up 20 per cent in April compared to the same month a year earlier, it said.
Kollect said it has refocused sales on construction sites and certain commercial premises with the first stage of reopening the Irish economy.
“The company continues to keep a tight control of costs, while seeking to take advantage of growth opportunities as they arise. Where we have options, we continue to focus on the higher margin business,” said Mr O’Connor.