30th Oct 2013 08:42
LONDON (Alliance News) - Scooter manufacturer, Vmoto Limited Wednesday said it will make its first ever annual profit, as sales were boosted by new store openings and the launch of further models in China.
The electric-scooter manufacturer and distributor said that it expects to make an annual profit of between AUD300,000 and AUD600,000 for the year ending December 31. Vmoto said it delivered a profitable quarter, with profits of around AUD287,000 in the third quarter ended September 30.
It said that in September it produced a net profit of around AUD126,000, and October trading is in line with board expectations.
Vmoto said that it has developed a range of five new models specifically targeted at the Chinese market, bringing the total to 11 models. It also said it plans to open additional stores in China by year end to increase retail distribution opportunities.
The scooter group, which specialises in electric-powered two-wheel vehicles, said that it received a new order from a Malaysian customer, and it is currently in talks with a number of potential new customers from around Asia, including India, Indonesia, Vietnam and Thailand.
Vmoto said it sold 11,292 vehicles in the quarter ended September 30 to Shanghai-based PowerEagle International Co. Limited, a company with which it holds an original equipment manufacturer contract.
So far this year, Vmoto said it has sold a total of 33,392 units and is on track to deliver on PowerEagle's production target of around 42,000 units for the year ending December 31.
The group said it sold over 1,500 Vmoto vehicles during the period from its first four Chinese stores.
It also said that its scooters were shipped to distributors in Slovenia, Canada and South Africa, whilst European orders remained slow due to a weaker economic climate.
Vmoto said that it now plans to raise a further AUD5 million at 2.2 cents per share, in a placing with Australian and UK institutions and investors, to fund Chinese expansion and its joint venture
Shares were up 4.9% after the open Wednesday, at 1.60 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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