The European Moving Group (EMG) has developed a
groundbreaking technology for relocation services and has
now become the market leader in Europe with services
within the "Man & Van" logistics sector. This is done
with the help of an online platform targeted at the
consumer market. An automated service where the customer
orders moving and where the software calculates which
service provider can best transport and how many moving
boxes and cubic capacity there is to be transported.
The customer
can order help with packing their household goods if help
is required but it costs extra. Similarly, the customer
pays extra if they want help with unpacking. The basic
service is that EMG's service providers pick up the
consignment and transport it with a van to a specific
address. The web-based platform is a SaaS "One Platform"
(OP) for B2B Man & Van service providers and the
company's customers.
European Moving is the first relocation service provider
to use intelligent platform technology to process the
service. When the platform is fully developed, it will
make full use of Artificial Intelligence (AI). It will be
an all-in-one application. The company has no owned trucks
or drivers but hires independent service providers who can
connect to the system. The platform will put the right van
in the right place with the right amount of space for each
customers goods(route planning). Likewise, it will decide
if it is possible to combine two moves simultaneously in
one van and so avoid "empty runs" in either direction,
thereby making the process environmentally friendly
achieving a positive carbon footprint.
This means that the contracted service providers become
more efficient and thus get more profitable runs. European
Moving handles all contact with its customers and takes
payments in advance from the customer.
European Moving focuses on automating and streamlining the
flow of transports. All sales are managed online. The
focus is on customer satisfaction, the customer being able
to track his / her transport via the net, and see
when their consignment is expected to arrive at the final
destination.
A customer center is located in Bulgaria where the
customer can reach the company if something should have
happened or issues arise. The reason why the company has
quickly become the market leader in international moves
within Europe is precisely the automation combined with
customer focus and fixed prices, which are considerably
lower than those of the competitors.
The platform's structure is relatively open so that it can
be adapted to different sectors and companies, which can
be included in the company's network. The management of
the European Moving Group is primarily done by
entrepreneurs with good logistic knowledge, who have built
up the company by being operational from day one. To date,
the company is owned by founder Daniel Blanche, CEO,
investors Peter Blanche and Derek Taylor-Vrsalovich.
The company is located in Folkestone, Kent, UK. The
founders have put in place a competent management team and
group of advisors. The company will now be public and
listed on Nasdaq First North (Stockholmsbörsen) in the
spring of 2019. An owner spread is made so that the
company gets over 1,000 new shareholders.
Focus on the customer
The customer
pays a refundable small deposit as a starting fee. If the
move is cancelled well in advance, the customer will
receive the full amount back. The move is booked and
the customer receives a confirmation (PDF) when the system
calculates delivery times and the load range. The market
research done by the company indicates the following:
• Customers are frustrated with the lack of information
about where their household goods are at any given time.
• Customers cannot easily make adjustments to their
removal requirements once the removal has been booked.
• It is also difficult to facilitate the removal of
special items.
• The competitors' transaction documents are delivered in
PDF format and cannot be changed once the order is made.
• The service provider receives information about what is
to be moved in an untimely fashion and cannot effectively
plan their routes to achieve efficient optimization.
• The service provider cannot see the complete list of
what is to be transported in advance, which in turn often
leads to overweight and over capacity issues.
• Nothing can be followed up on-line for either customer
or service provider. The payment documentation is often
incorrect.
Invitation to subscribe for shares
In order to secure EMG's funding for the next phase of
the development of the company's software, and to increase
the spread of ownership in the Company, the Board of EMG
on February 8, 2019 has decided, with deviation from the
shareholders' preferential rights, to carry out a new
issue of shares in EMG in the form of an offer to the
public and institutional investors in Sweden, and selected
institutional investors in the UK (the "Offer"). The offer
comprises shares with a value of SEK 12 million (SEK).
Plans for market listing 2019
European Moving EMG AB (publ) plans for a market listing
in 2019 and in connection with this investor offers to
acquire shares in the company. During the winter, the
company has decided to carry out a reverse acquisition
with European Moving Ltd in Malta, which means that this
business will become a wholly owned subsidiary of EMG and
will also be an operating business.
The capital that is now being taken in is to make an
ownership spread to at least 300 investors in order to
reach the marketplace's requirements for listing. The
funds received will be used exclusively for the
development of the projects in Kardara, and to cover the
costs incurred in connection with the present distribution
issue. It is the intention of the Board of Directors to
submit an application during the autumn to take up the
shares in EMG for trading on the appropriate MTF list.
The
issuer
agent is nvr.se (info@nvr.se). As long as the share is
unlisted, trading will be possible through electronic
ads in cooperation with NVR.
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Offering
Summary
| Issue
amount: |
SEK
4 million |
| Number
of shares issued: |
400,000
shares |
| Pre
money valuation: |
SEK
46 million (Swedish krona)
|
| Price
per share: |
SEK
10,00
|
| Minimum
subscrition amount: |
1,000
shares / SEK 10,000
|
| Subscription
period: |
15
March – 30 April 2019 |
| Payment: |
According
to subscription allotment
|
| Trade: |
The
board of directors intend apply to float
its stock on a suitable MTF list.
|
| Allotment: |
In
case of oversubscription, the Board
decides on further allocation. |
| Video: |
Se
bolagets presentation: RoadShow. |
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Bonus
The
principal owners are keen on the shareholders who
invest in the company, and therefore donate extra
shares based on how many shares one subscribes
according to the table below.
•
120,000 shares (SEK 1,200,000) 5% gives 6,000
shares,
• 240,000 shares (SEK 2,400,000) 7% gives 16,800
shares,
• 480,000 shares (SEK 4,800,000) 10% gives 48,000
shares,
extra from the main owners.
Derek Taylor-Vrsalovich, Chairman
Why is the system needed?
The
industry's system for transporting goods currently
makes it difficult for the customer to know where
their delivery is in the last few kilometres of
its move. It makes it impossible to serve
the customer with information and be able to
calculate a fair price, or to calculate the right
size of the truck. Roadmap is also not proposed in
these systems.
Why is the investment needed?
The
company mainly wants to complete the platform in
order to be able to market its services on a broad
front across Europe. The company concentrates on
service centers in three places in Europe:
Folkstone in England, Warsaw in Poland and Varna
in Bulgaria. The technology platform is being
developed in Bulgaria. The business is growing
organically and with the investments already made
will be profitable in Q2 2019.
The
investments and capital requirements needed in the
company are:
• Completely build the platform, MVP, SaaS OP - €
500,000
• € 100,000 for a bidding platform against
carriers and expanding the website with a booking
app.
• €300,000 for building a mobile app for customer,
driver and portal to manager.
Working
capital
requires € 400,000 annually for new advertising
channels that go back in increased sales and
profits in one quarter. Furthermore, € 700,000 is
needed in working capital to build the
organization across Europe, which is a
prerequisite for expanding. Costs for listing on
the Nasdaq Stock Exchange (First North) are
currently estimated at around € 150,000.
Based on market research and the development the
company has had since 2015, management and owners
forecast that expected revenues will be: 2019 =
EUR 8 million, in 2020 = EUR 16 million.
How many moves in Europe?
In an
increasingly globalized world and that the older
generation is living longer, the interest and the
need for foreign migration increases. Around 10-12
percent of the population moves every year. Mainly
within the country but the migrants are moving
towards big cities with the increased
urbanization. More and more people are also
choosing to study, work and retire in another
European country.
In Sweden there are statistics indicating people
move about 11 times during their lifetime. And
this is increasing year on year. The move is
most likely to take place between summer and
autumn. About every third move is to another
municipality, with every sixth to another county,
i.e. farther away but still within the country.
There is no reason to believe that the picture is
different in other European countries.
Movements are sometimes linked with studies or
change of work, but relocations are also made for
family reasons. Examples of such relocations are
family forms, housing changes in the case of a
growing family and separations. Additionally, more
and more pensioners choose to move to sunnier
climes!
Regarding Swedes in the world's latest survey,
Seven percent of the Swedish population live
abroad. That means 50,000 Swedes move abroad every
year. One in ten Swedes lives abroad, and it can
be assumed that this will apply to the rest of
Europe. Women who move live longer than men
who move.
Individuals who reside in their hometown or
suburban municipality during their lifetime has
clearly higher mortality, according to a new
report from Statistics Sweden (SCB.se). Women who
move out of Sweden live 24 percent longer, while
men live 27 per cent longer.
One explanation for the death rate decreasing
during long migration is that those who have moved
longer distances on average are clearly better
educated than those who move within their
immediate area or stay where they are born.
Reasons to invest
Every year, about 8-10 percent of the population
moves within the European countries. The flow of
flows is increasing more and more between countries
regardless of high and recession. The industry is
stable and growing every year..
The company has been profitable from the outset and
does not need large investments except the platform
that is now being built. Variable cost is the
marketing that gives the majority more in organic
growth the more you advertise the services.
Grows organically and is already the market leader,
which means that the company does not have to make
heavy investments after the platform is ready. No
driver staff to hire and no trucks to buy.
The business is associated with low risk of driving.
One can follow the financial outcome and thus the
costs weekly by week.
The company and its management have as stated
strategy with a generous dividend policy. Up to 50
percent of the profits shall be distributed to the
shareholders each year.
The valuation is currently low and as the company
grows organically with the help of new technology
that focuses on the customer in the first place, the
valuation is increasing rapidly.
Should be listed on the Nasdaq Stock Exchange in
early summer, which in itself becomes a quality
guarantor in an industry where most is based on
customer confidence.
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Summary ("Teaser")