LONDON (Alliance News) - Vmoto Ltd said Thursday swung into a profit for the half-year to the end of June as it saw revenues rise, and saw increased demand for its electric scooter products in the Chinese market.
Vmoto expects the second-half to see "substantially higher revenue and earnings" compared to the first-half.
The company posted a pretax profit of USD210,760, swung from a loss of USD553,785 in the previous year, as revenue rose to USD15.9 million from USD9.8 million, although this was partly offset by higher cost of sales and administrative expenses.
Production increased to 36,705 units during the half-year, up from 27,515 units in the previous year. Vmoto said that its yearly production is still not near 30% of its facilities capacity, meaning it had plenty of capacity available to increase production. It expanded its Chinese distribution network to 16 company-owned retail stores and more than 10 distributor or dealer relationships.
It has a new product in development, the Vmoto 1, a light alloy fold-able scooter.
Vmoto said that it continues to seek out and discuss potential collaborations and joint venture opportunities in China, which it said will add value and bottom line growth to its business.
Shares in Vmoto were trading down 1.1% at 2.25 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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