VMOTO LIMITED
Vmoto Limited (ASX: VMT) is pleased to announce its results for the six months ended 30 June 2015 (1H15) that saw the Company deliver another record performance and generating strong growth across all key metrics.
Commenting on the 1H15 result, Managing Director Charles Chen said: "Vmoto has delivered on its clearly defined strategy of targeting high margin international unit sales, while also continuing to develop the brand's presence in the domestic Chinese market.
"The Company's strategy to pursue high margin international sales has enjoyed early success, with a
68% increase in international unit sales underpinning the growth in profits.
"With sales volume over the past six months in line with management expectations, Vmoto is well positioned to achieve its stated NPAT guidance for 2015 of between $5 million and $7 million. We have also received significant interest for potential collaborations with international groups that will complement and enhance our existing customer base, and we look forward to reporting on these in the coming months," said Mr Chen.
• Revenue up 57% to $24.9 million (1H14: $15.9 million)
• EBITDA up 264% to $2.1 million (1H14: $574k)
• Statutory NPAT up 379% to $1.0 million (1H14: $211k)
• Underlying NPAT (after removing non-cash expenses) up 122% to $1.6 million1 (1H14: $705k2)
• Strong balance sheet, with gross cash of $11.1 million (31 December 2014: $3.8 million)
• Total units sold up 13% to 41,503 units (1H14: 36,705)
• Units sold to international customers up 68% to 7,211 (1H14: 4,284)
• Expanded retail sales network in China with over 43 outlets comprising company owned retail stores and third party distributor/dealer relationships
• Continued growth in new international markets, including Denmark, Malaysia and Vietnam
• Appointed a distributor for the UK and Irish markets
• Progressed with the establishment of internet based retail sales platform
• Progressed discussions with PowerEagle to extend production agreement post 2015
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• Successfully raised $8.9 million through an oversubscribed placement to existing and new institutional and sophisticated investors in Australia and the UK to fund growth initiatives.
Commenting on Vmoto's 1H15 performance, Mr Chen said he was pleased with how the Company was tracking in terms of revenue and profit, and he expects to see unit sales continue to grow in the second half as the online sales platform becomes operational and new international distributors receive their first shipments.
"Vmoto has developed a reputation as a prestigious, high quality brand, both in China and internationally. Making our products more accessible through our soon to be launched online sales platform will drive increased sales volumes of the Vmoto brand.
"Vmoto has progressed a number of international opportunities over the first half of 2015, commencing discussions with a significant European supermarket group and a high-tech North American company developing shared transportation and communication systems for electric vehicles.
"Vmoto also appointed a new distributor for the UK and Ireland, with delivery of that distributor's first order scheduled for this quarter. This exclusive distribution agreement for the UK and Ireland is an exciting step for Vmoto and will strengthen the visibility and accessibility of Vmoto's brand and products in international markets, which is in line with our strategy to target higher margin international sales.
"Following our successful, oversubscribed $8.9 million raising, Vmoto has further strengthened its balance sheet, putting the Company in a strong position to pursue several strategic initiatives that will underpin future growth," added Mr Chen.
Vmoto will continue to execute its strategy of targeting high margin international sales and growth markets. The first half of this year has seen the Company progress significant new market entry and distribution opportunities, including North America, Italy, Switzerland, the UK, Ireland and New Zealand. These and further new markets will be developed over the second half of this year as the Company looks to deliver the growth that will drive achievement of its earnings forecast.
The three-wheel and four-wheel electric vehicle company, in which Vmoto holds a 20% equity interest, re-located its operations to Vmoto's Nanjing manufacturing facility, after initially producing units externally. This company focuses on three-wheel and four-wheel electric vehicles that have applications across a number of industries, including freight and goods delivery, leisure and sightseeing and transportation for the aged and disabled population. Any revenue generated will initially be re-invested back into the company as it scales up.
With plenty of capacity remaining in Vmoto's production facility, the Company is well positioned to continue ramping up its volume to meet growing global demand for its electric vehicles and benefit from further economies of scale.
The second half of the year is historically stronger than the first. With more domestic and international distributors and customers due to visit the factory to discuss and finalise orders, production and sales are expected to increase over the coming months in line with expectations previously provided to the market.
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For further enquiries, please contact:
Vmoto
Charles Chen, Managing Director
Olly Cairns, Non-Executive Director
+61 (8) 9226 3865
+61 (8) 9226 3865
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Market Eye Pty Ltd | +61 400 009 774 |
Ronn Bechler | ronn.bechler@marketeye.com.au |
finnCap Ltd +44 20 7220 0500
Christopher Raggett/Simon Hicks (corporate finance)
Tony Quirke/Mia Gardner (corporate broking)
About VmotoVmoto Limited (ASX: VMT) is a global scooter manufacturing and distribution group. The Company specialises in high quality "green" electric powered scooters and manufactures a range of electric scooters, based on western technology and design, from its low cost manufacturing facilities in Nanjing, China. Vmoto combines low cost Chinese manufacturing capabilities with European design. The group operates through two primary brands: Vmoto (aimed at the value market in Asia) and E-Max (targeting Western markets with a premium end product). As well as operating under its own brands, the Company also sells to a number of customers on an original equipment manufacturer ("OEM") basis.
Note 1: The following table provides a reconciliation between the statutory NPAT and underlying
NPAT figures for 1H15:
Statutory NPAT for 1H15 A$1,010,532
Add back non-cash expenses:
Share based expenses A$113,316
Tax expense adjustments related to carry forward tax losses being utilised in 1H15, which deferred tax assets were previously recognised in financial year ended 31 December 2014
A$440,233
Underlying NPAT for 1H15 A$1,564,081
Note 2: The following table provides a reconciliation between the statutory NPAT and underlying
NPAT figures for 1H14:
Statutory NPAT for 1H14 A$210,760
Add back non-cash expenses:
Share based expenses A$493,809
Underlying NPAT for 1H14 A$704,569
Directors believe this information is useful to provide investors with transparency on the underlying performance of the Company.
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