News blog

Vmoto Ltd

• BY: Andrew Hore |
• POSTED: 30/10/2013 |

Electric scooters manufacturer Vmoto Ltd says it was profitable in third quarter of 2013 and it should be profitable for the year as a whole. 

The third quarter profit was A$287,000. Vmoto has opened four stores in China and they have sold 1,500 scooters with further sales in Malaysia. There were 11,292 scooters shipped under the agreement with PowerEagle, which takes the total to 33,392. That means that Vmoto is well on the way to the 42,000 target for the full year.

Cash has improved from A$900,000 to A$1.26m in the third quarter. There was A$5.2m drawn down from the company’s loan facility. A further £2.87m has since been raised in another placing at 1.27p a share and management says that this will help to accelerate growth.

Vmoto has set up a joint venture with a Chinese developer of electronic vehicle components. Vmoto is a customer. The joint venture partner will move its production to Vmoto’s factory. Vmoto will invest A$350,000 and lent a further A$1m. Vmoto has a three year option to acquire the other 50% for 50% of five times the average post-tax profit for the previous two years plus 50% of net assets.

A profit of at least $300,000 is forecast for 2013, rising to A$4.6m next year.

At 1.55p a share, Vmoto is valued at £18.6m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2013_49.pdf