LONDON (Alliance News) - Scooter manufacturer Vmoto Ltd Wednesday reported strong growth in revenue for 2014 and good underlying earnings growth in the business, but said its pretax profit for the year was hit by higher expenses and an impairment charge.
The company said it generated "record" revenue, operating cash flows and profitability on an adjusted basis in 2014.
Vmoto reported a pretax profit of AUD784,358 for 2014, compared with AUD777,306 in 2013, after it said it was hit by higher expenses and a AUD1.6 million impairment of inventories. Revenue however increased 79% to AUD45.1 million, up from AUD25.2 million.
On an underlying basis, which strips out one-off non-cash costs and share-based payments, earnings before interest, taxes, depreciation and amortisation was AUD4.0 million, up from AUD1.4 million last year.
During 2014, the company booked AUD2.0 million in impairments relating to petrol stock and sundry receivables, alongside AUD0.7 million in share-based payments.
"Underlying these results was a strong increase in sales and distribution, with over 76,000 units sold over 2014; a 21% increase on the prior 12 months. With substantial production capacity still available at the company's manufacturing facilities in China, we are very excited by Vmoto's ability to ramp up production as we execute our growth strategy," said Managing Director Charles Chen in a statement.
Vmoto shares were trading 11% higher Wednesday morning at 1.80 pence.
Vmoto said that the strategic partnerships it signed over the past year will hold it in good stead for the next phase of its development, as it expands into the three- and four-wheel electric vehicle markets and targets higher-margin international sales of two-wheel vehicles.
Vmoto reported a positive operating cash flow of AUD666,000 for 2014, compared with an operating cash out flow of AUD3.8 million in 2013.
"Vmoto has a strong base from which to build continued strong growth in 2015 and beyond. With production and sales of two-wheel vehicles expected to exceed 93,000 units this year, and a focus on higher margin international sales, we expect to turn the positive momentum generated in 2014 into tangible financial results in 2015," said Chen.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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