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LONDON (Alliance News) - Vela Technologies PLC Friday said it has invested GBP50,000 for a minority interest in Revolve Performance Ltd.
Revolve Performance is a newly incorporated company which fully owns Nitec Ltd, a non-operating holding company which fully owns specialist powertrain and performance engineering group Revolve Technologies Ltd, as well as 91% of US operating company Mountune LLC.
Mountune, whose products are used by consumers and racing teams to enhance engine performance, has exclusive access to the Ford dealership network in both the UK and US, and is the only European third-party provider of performance parts that does not affect the Ford warranty. It also has two multi-year engineering projects in its pipeline, Vela said.
Vela said that Revolve Performance has raised GBP1.5 million through an equity investment to support expansion in the US and GBP1.5 million through a loan investment which will be used mainly to refinance existing debt and capital expenditure in the UK.
Revolve Performance was incorporated on April 17 for the purposes of the transaction and has therefore not produced any accounts to date, Vela said. But in 2014, Nitec generated revenue of GBP7.8 million and an operating profit of GBP0.2 million. Nitec's net assets as at December 31, 2014 were GBP2.2 million. Results for the first quarter of 2015 were ahead of internal forecasts with sales at Mountune at record levels and growing, Vela added.
Vela is an investing company focused on early stage and pre-IPO disruptive technology investments.
"Revolve Performance is an ideal fit for our investment criteria. Mountune is differentiated by technical effectiveness whether with Ford as it grows its model range in the North America and Europe or with its activities with successful racing teams. Meanwhile, the engineering division is seeing increased demand from major vehicle manufacturers who look to companies like Revolve to help drive technical choices in, for example, hybrid vehicles. The group also owns significant intellectual properties in systems to integrate hydrogen fuel into diesel engines leading to reduced carbon emissions and improving fuel efficiency," Non-Executive Chairman Brent Fitzpatrick and Executive Director Antony Laiker said in a statement.
"Going forward, the board of Revolve Performance anticipates that a substantial percentage of the growth of the business will emanate from the Mountune performance parts business both in the UK and the US as Ford continues its 'One Ford' strategy. We look forward to keeping shareholders apprised of developments in our new investment," the directors said.
Shares in Vela were trading down 15% at 0.191 pence Friday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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