29th Jan 2015 09:56
LONDON (Alliance News) - Scooter manufacturer Vmoto Ltd Thursday reported its fourth consecutive quarter of positive operating cash flow, even though it said it made less sales in the final quarter than it did in the third quarter.
The company said it continues to grow earnings, and generated an positive operating cash flow of AUD430,000 in the last three months of 2014. It said its normalised net profit after tax generated for the December 2014 quarter was around AUD1.3 million, reflecting the higher margins attributable to the units sold.
Vmoto said it sold a total of 19,326 units in the three months to end-December, slightly less than the 20,177 units it sold in the third quarter. For 2014 as a whole, the company said it has sold a total of 76,208 units.
"Whilst unit sales were slightly down on the September quarter margins across the various sales channels have increased reflected in increasing cash flow and profits," the company said in a statement.
At the end of last year, Vmoto entered into a joint venture to enter the electric three-wheel and four-wheel vehicle market in China. Vmoto took a 20% stake in the joint venture, with a set of unnamed partners, and has said that it is initially investing up to AUD1.5 million in the joint venture.
The joint venture business will focus on the design, manufacture and distribution of electric three-wheel and four-wheel vehicles for the Chinese market. The first year production and distribution for the new company is forecast at between 20,000 and 50,000 units, according to Vmoto, who said that operation will begin next month.
"This joint venture and market opportunity presents a very attractive growth channel for Vmoto that leverages the company's technological and product capabilities across much higher margin products," the company said in its statement Thursday.
Vmoto said it continues to receive "significant interest" from other electric vehicle distributors and parties for potential collaboration or joint venture opportunities.
"The company's growing profits are a clear demonstration of the increasing traction Vmoto brands are achieving in key markets in China and Asia, as well as the company's international positioning in the premium end of the electric scooter market," the company said.
Vmoto said it will release its full year results for 2014 on or before February 23.
The company's shares were untraded Thursday morning. The stock last traded at 2.07 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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