The financial statements provided are for the years ending 30.09.2013 and 30.09.2014. The financial statements for the year ending 30.09.2015 are still in a provisional, unaudited form.
All amounts are expressed in euros.

The tangible fixed assets mainly comprise the resources required for operating our apartments for short-term lets. These include furnishings, household electrical appliances and fixtures for these apartments. The intangible fixed assets mainly comprise the investments in the customer relationship management tools and website. For accounting purposes, intangible assets and tangible assets such as tools, office equipment and electrical appliances are depreciated over 5 years, while furnishings and fixtures are depreciated over 10 years.

The accounts show the revenue obtained from our short-term rentals and the incentive payments from property owners for taking on new apartments.

Our financial plan is based on assumptions regarding the occupation rates of our apartments, the average price per night and the increase in our capacity. The assumptions on occupation rates and average prices are based on historic data collected internally since Smartflats began, and from various forecasting tools for demand and price levels according to period. The assumptions regarding the growth in our capacity, i.e. the total number of apartments managed, are based on the planned opening of an average of 6 new apartments per quarter.

Smartflats mainly draws its revenue from the short-term rental of furnished apartments. Reservations are made via online travel agents, such as booking.com or Expedia, or directly on the Smartflats website. Long-term stays and institutional reservations are mainly arranged via our commercial service. Smartflats also draws some of its revenue from incentive payments made by owners when signing leases for new apartments.

Smartflats' cost structure comprises two main types of costs - variable and fixed. Variable costs change according to the occupation of the apartments and number of stays. This cost category includes cleaning and laundry, commission paid to online travel agents and credit card processing fees. Fixed costs include rents for the apartments managed, the wage bill, management fees and administrative charges.