14th Apr 2015 07:13
LONDON (Alliance News) - Vmoto Ltd shares surged early Tuesday after the scooter manufacturer predicted strong profit growth in 2015, driven partly by increased sales outside China as well as its acquisition last year of electric vehicle controller business Nanjing Haiyon.
The company, which currently makes most of its sales in China, said it expects earnings before interest, tax, depreciation an amortisation to be between AUD6 million and AUD8 million in 2015, up from an underlying figure of AUD4 million in 2014. It expects net profit to be between AUD5 million and AUD7 million in 2015, up from AUD3.2 million last year. Revenue is expected to rise to over AUD69 million.
"Having spent the past three years putting in place the foundations to support Vmoto's growth into a leading global electric two-wheel vehicle company, we are now seeing the results of our strategy and operational focus. With revenue from increased production and distribution expected to exceed AUD69 million this year, Vmoto is at its scale inflection point, with earnings forecast to grow very strongly over 2015 and beyond," Managing Director Charles Chen said in a statement.
It said revenue would be buoyed by increased production and distribution, and it will also be selling a growing proportion of higher margin vehicles for international markets.
Vmoto's shares were up 30.5% at 2.48 pence on London's AIM market early Tuesday, while its Australian-listed shares were up 23.1% at AUD0.00480.
By Steve McGrath; [email protected]; @stevemcgrath1
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