LONDON (Alliance News) - Vmoto Ltd Friday said growth continued in the third quarter, delivering its third consecutive quarter of positive operating cash flow and an increase in profit, buoyed by increased demand for its higher-margin products.
The scooter manufacturer said its quarterly net profit for the quarter ended September 30 was AUD873,000, compared with a profit of AUD287,000 in the same period a year earlier.
The company said it received more orders for higher performance electric two wheel vehicles, which it said contributed to higher margins.
"The shift in demand from lower performance electric two wheel vehicles to higher performance electric two wheel vehicles in China and international markets further highlights Vmoto's competitive advantage as the company's premium quality unit range is well positioned to meet the growing demand for higher performance electric two wheel vehicles," the company said in its statement Friday.
The company said its operating cash flow generated in the third quarter was USD55,244, compared with a negative operating cash outflow of USD993,378 in the same quarter last year.
It said that sales during the quarter through its retail stores and distributors to original equipment manufacturers customers and internationally stood at 20,177 units.
During the quarter, the company acquired Nanjing Haiyong Electronic Technology Co Ltd. At the time, it said it expects the acquisition to boost its earnings and give it improved economies of scale, saying it wanted to turn Haiyong into a major global producer of complete electric driving system for electric vehicles.
Vmoto said Friday that for the full year 2014, it expects to make a "normalised annual profit", which excludes one-off expenses and impairments, of between AUD2.5 million and AUD3.0 million, judging by current orders, customer discussions, and including a contribution from Haiyong, it said.
Vmoto shares were untraded Friday morning at 2.34 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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