REG - Vmoto Limited - Final Results <Origin Href="QuoteRef">SJP.L</Origin> <Origin Href="QuoteRef">VMT.AX</Origin>

VmotoAnnouncement

25/02/2015 07:11

RNS Number : 7772F
Vmoto Limited
25 February 2015
PRELIMINARY FINAL REPORT:
VMOTO DELIVERS A RECORD RESULT 
ANNOUNCEMENT 25 FEBRUARY 2015
Vmoto Limited (ASX/AIM: VMT) is pleased to provide its unaudited preliminary results for the 12 months ended 31 December 2014 (FY14) that saw the Company generate record revenue, and adjusted profitability and operating cash flows. 
FY14 financial highlights
 Revenue up 79% to $45.1 million (FY13: $25.2 million)
 Statutory earnings
o EBITDA of $1.2 million (FY13: $1.3 million)
o NPAT of $476k (FY13: $404k)
 Underlying earnings1
o EBITDA of $4.0 million (FY13: $1.4 million)
o NPAT of $3.2 million (FY13: $0.6 million)
o EPS of 0.26cps (FY13: 0.05cps)
 Positive operating cash flow of $666k (FY13: operating cash out flow of $3.8 million)
 Net assets up 26% to $22.3 million (31 December 2013: $17.7 million)
___________________
1After removing one-off non-cash costs of $2.0 million impairments (petrol stock and sundry receivables) and $0.7 million share based payments
FY14 operational highlights
 Significantly expanded international brand awareness and distribution footprint through signing of new international distributorships, with higher margin units sold outside of China up 104% to 9,121 (FY13: 4,472 units)
 Expanded Chinese distribution footprint to 16 retail stores and 15 distributors
 Continued to invest in R&D, with a new model scooter due in FY15
 Acquired Nanjing Haiyong, an advanced electronic technology company focused on producing controllers, a key component in electric vehicle driving systems
 Signed a co-operation agreement with Changzhou Dusheng Electrical Equipment Co., the third largest handle bar manufacturer in China
 Formed a joint venture with a number of experienced partners in the Chinese electric vehicle market, to produce three-wheel and four-wheel electric vehicles, capitalising on the fast growing global demand for environmentally friendly small vehicles
FY14 saw Vmoto achieve a record performance 
Commenting on the FY14 results, Vmoto's Managing Director, Charles Chen said:
"The 2014 financial year was a very successful one for Vmoto. The progress the Company made in further establishing itself in the international electric vehicle market was extremely pleasing. In particular, the strategic partnerships Vmoto has entered into over the past year will hold the Company 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.
"Over the past 12 months, Vmoto was able to generate positive operating cash flows for four consecutive quarters, and set new records for revenue and earnings. The Company has a strong balance sheet, paying down debt over FY14 and is investing in working capital as production ramps up further in 2015. 
"Underlying these results was a strong increase in sales and distribution, with over 76,000 units sold over FY14; 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."
Strongly positioned for further growth in FY15
"Vmoto is at an exciting stage in its development and well positioned to ramp up its production in line with rapidly increasing demand for electric vehicles. The environmental initiatives undertaken by the government in China and in many other countries around the world provide a significant growth opportunity for Vmoto, given its green credentials.
"The joint venture formed with a number of other experienced partners in the electric vehicle industry will facilitate Vmoto's entrance into the three and four-wheel electric vehicle market, a market we see as having huge growth potential. The demand for three-wheel electric vehicles has increased from 500,000 units per annum in 2004 to 10 million units in 2013, and it is only expected to increase as the world shifts towards more sustainable modes of transport. Likewise, the annual demand for four-wheel electric vehicles is expected to reach 820,000 units in China alone in 2020.
"We are exceptionally well positioned to handle the increasing demand for electric vehicles in China and abroad, with the manufacturing facility currently operating at around 30% of its floor-space capacity. This means there are no short term construction requirements for the Company, and the factory has spatial capacity for the eventual production of three and four-wheel electric vehicles through the new joint venture.
"Vmoto is well placed to continue its growth. The Company has market leading products, strategic distribution relationships growing our China and international footprint, a manufacturing facility with available capacity, new joint ventures, and a strong balance sheet. 
"Having delivered an excellent result for FY14, 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 FY14 into tangible financial results in FY15.
-ENDS-
For further information, please contact:
Vmoto
Charles Chen, Managing Director
Olly Cairns, Non-Executive Director+61 8 9226 3865
Investors and media
Market Eye Pty Ltd
Ronn Bechler +61 400 009 774
finnCap Ltd  
Ed Frisby (corporate finance)
Christopher Raggett (corporate finance)
Tony Quirke (corporate broking)  +44 20 7220 0500

Mirabaud
Peter Krens (equity capital markets) +44 20 7878 3362
Ed Haig-Thomas (equity capital markets) +44 20 7878 3447
About Vmoto
Vmoto Limited (ASX/AIM: VMT) is a global scooter manufacturing and distribution group. The Company specialises in high quality "green" electric powered two wheel vehicles and manufactures a range of western designed electric scooters from its low cost manufacturing facilities in Nanjing, China. Vmoto combines low cost Chinese manufacturing capabilities with European design. The group operates through two primary brands: Vmoto (aimed at the value market in Asia) and E-Max (targeting the Western markets, with a premium end product). As well as operating under its own brands, the Company also sells to a number of customers on an original equipment manufacturer ("OEM") basis.


Appendix 4E
Preliminary Final Report
to the Australian Stock Exchange
Part 1
Name of Entity
1. Vmoto Limited
ABN
36 098 455 460
Financial Year Ended
12 months ended 31 December 2014
Previous Corresponding Reporting Period
12 months ended 31 December 2013
Part 2 - Results for Announcement to the Market

$'000
Percentage increase /(decrease) over previous corresponding period
Revenue from ordinary activities
45,098
79%
Profit from ordinary activities after tax attributable to members
476
18%
Net profit attributable to members
476
18%
Dividends (distributions)
Amount per security
Franked amount per security
Final Dividend
Nil
Nil
Interim Dividend
Nil
Nil
Record date for determining entitlements to the dividends (if any)
2. Not Applicable
Brief explanation of any of the figures reported above necessary to enable the figures to be understood:
This report relates to the year ended 31 December 2014. Comparatives are for the year ended 31 December 2013. 
Refer to the above Operations Review for further commentary on the results for the year ended 31 December 2014.


Part 3 - Contents of ASX Appendix 4E
Section
Contents
Part 1
Details of entity, reporting period
Part 2
Results for announcement to the market
Part 3
Contents of ASX Appendix 4E
Part 4
Consolidated statement of comprehensive income
Part 5
Consolidated accumulated losses
Part 6
Consolidated statement of financial position
Part 7
Consolidated statement of cash flows
Part 8
Basis of preparation
Part 9
Loss from ordinary activities
Part 10
Commentary on results
Part 11
Notes to the consolidated statement of cash flows
Part 12
Details relating to dividends
Part 13
Loss per share
Part 14
Net tangible assets per security
Part 15
Details of entities over which control has been gained or lost
Part 16
Details of associates and joint venture entities
Part 17
Issued securities
Part 18
Segment information
Part 19
Subsequent events
Part 20
Information on audit or review



Part 4 - Consolidated Statement of Profit or Loss

Year Ended
31 December 2014
$

Year Ended
31December 2013
$
Continuing Operations



Sales revenue
45,098,053

25,174,809




Cost of goods sold
(38,505,960)

(21,409,686)




Gross profit
6,592,093

3,765,123




Other revenue from ordinary activities
166,741

453,418




Operational expenses
(1,576,688)

(1,398,897)




Marketing and distribution expenses
(507,990)

(660,342)




Corporate and administrative expenses
(1,795,687)

(1,337,819)




Occupancy expenses
(59,946)

(43,175)
Other expenses from ordinary activities
(486,094)

(1,002)




Impairment of inventories
(1,548,071)

-




Profit before finance costs and income tax
784,358

777,306




Finance costs
(275,507)

(372,846)




Income tax
(32,566)

-
Profit after tax from continuing operations
476,285

404,460




Profit after tax from discontinued operations
-

-
Total profit for the period
476,285

404,460




Profit attributable to members of the parent entity
476,285

404,460






Part 5 - Consolidated Accumulated losses

Year Ended 31December 2014
$

Year Ended
31December 2013
$
Accumulated losses at the beginning of the period
(37,340,542)

(37,862,747)
Profit for the period
476,285

404,460
Transfer expired options reserve to accumulated losses
130,577

173,745
Prior period adjustment
-

(56,000)
Accumulated losses at the end of the period
(36,733,680)

(37,340,542)




Part 6 - Consolidated Statement of Financial Position

31 December 2014

31 December 2013
CURRENT ASSETS
 $

$




Cash and cash equivalents
3,850,142

4,426,994
Trade and other receivables
5,287,493

3,639,758
Inventories
5,945,188

5,180,807
Other
3,738,172

2,449,680
Total Current Assets
18,820,995

15,697,239
NON CURRENT ASSETS







Property, plant and equipment
6,350,283

5,473,184
Intangible assets
6,207,031

3,592,983
Investments
393,244

-
Total Non Current Assets
12,950,558

9,066,167




TOTAL ASSETS
31,771,553

24,763,406




CURRENT LIABILITIES







Trade and other payables
4,771,131

1,509,999
Interest bearing loans
4,718,929

5,522,005
Total Current Liabilities
9,490,060

7,032,004




TOTAL LIABILITIES
9,490,060

7,032,004








NET ASSETS
22,281,493

17,731,402




EQUITY







Issued capital
60,381,262

57,725,955
Reserves
(1,366,089)

(2,654,011)
Accumulated losses
(36,733,680)

(37,340,542)




TOTAL EQUITY
22,281,493

17,731,402






Part 7 - Consolidated Statement of Cash Flows

Year Ended 31 December 2014
$

Year Ended 31 December 2013
$
Cash flows from operating activities







Receipts from customers
46,458,103

27,835,244
Payments to suppliers and employees
(45,591,117)

(31,324,457)
Interest received
44,739

8,542
Interest paid
(273,499)

(375,681)
Other cash receipts
27,762

30,955
Net cash used in operating activities
665,988

(3,825,397)








Cash flows from investing activities







Payments for property, plant and equipment
(1,101,351)

(402,528)
Payments for intangible assets
-

(5,486)
Payments for equity investments 
(393,244)

-
Net cash used in investing activities
(1,494,595)

(408,014)








Cash flows from financing activities







Proceeds from issue of equity shares
1,207,266

6,540,660
Payments for share issue costs
(22,480)

(438,298)
Proceeds from borrowings
4,297,144

6,527,726
Repayment of borrowings
(5,400,250)

(6,043,162)
Net cash generated by financing activities
81,680

6,586,926








Net increase in cash held
(746,927)

2,353,515




Cash at the beginning of the financial year
4,426,994

1,834,894




Effects of exchange rate changes on cash
170,075

238,585








Cash at the end of the financial year
3,850,142

4,426,994






Part 8 - Basis of Preparation
This preliminary final report has been prepared in accordance with ASX Listing Rule 4.3A and the disclosure requirements of ASX Appendix 4E.

Part 9 - Profit from Ordinary Activities
The profit from ordinary activities before income tax includes the following items of revenue and expense:




Year Ended 31 December 2014
$

Year Ended 31 December 2013
$
2. REVENUEs and expenses OF CONTINUING OPERATIONS







(a) Other income



Interest income
45,245

8,514
Contributions from customers
45,401

351,189
Government subsidies
25,582

29,660
Net foreign exchange gain
9,668

-
Other
40,845

64,055

166,741

453,418




(b) Other expenses



Net foreign exchange loss
-

1,002

-

1,002




(c) Employee benefits expense



Wages and salaries costs
2,070,186

1,423,329

2,070,186

1,423,329




(d) Depreciation and amortisation



Depreciation 
457,635

484,112

457,635

484,112




Part 10 - Commentary on Results
Refer to the above Operations Review for commentary on the results for the year ended 31 December 2014.


Part 11 - Notes to the Consolidated Statement of Cash Flows 

Year Ended 31 December 2014
$

Year Ended 31 December 2013
$
(a) Reconciliation of cash:



For the purposes of the Statement of Cashflows, cash includes cash on hand, and in banks, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the Balance Sheet as follows:







Cash and cash equivalents
3,850,142

4,426,994
Cash at bank
3,850,142

4,426,994




(b) Reconciliation of net cash used in operating activities to loss after income tax







Profit (loss) after income tax
476,285

404,460
Add non-cash items:



Depreciation 
457,635

484,112
Impairments
2,034,165

-
Share based payment expenses
680,307

159,596

3,648,392

1,048,168
Changes in assets and liabilities:



(Increase)/decrease in receivables
(1,647,735)

(1,837,582)
(Increase) /decrease in inventories
(764,380)

(2,030,159)
(Increase)/decrease in other assets
(1,288,493)

(1,855,979)
Increase/(decrease) in payables
718,204

850,155
Net cash used in operating activities
665,988

(3,825,397)








Part 12 - Details Relating to Dividends
Date the dividend is payable
N/A
Record date to determine entitlement to the dividend
N/A
Amount per security
N/A
Total dividend
N/A
Amount per security of foreign sourced dividend or distribution
N/A
Details of any dividend reinvestment plans in operation
N/A
The last date for receipt of an election notice for participation in any dividend reinvestment plans 
N/A


Part 13 - Loss per Share

Consolidated

Year Ended 31 December 2014

Year Ended 31 December 2013
Basic earnings (loss) per share
0.04 cents

0.04 cents




The Company's potential ordinary shares are not considered dilutive and accordingly basic loss per share is the same as diluted loss per share.




Weighted average number of ordinary shares for the purpose of basic earnings per share
1,239,899,894

959,249,954

Part 14 - Net Tangible Assets per Security

31 December 2014

31 December 2013




Net tangible asset backing per ordinary security (cents)
1.30

1.16








Part 15 - Details of Entities Over Which Control has been Gained or Lost
Name of entity
Nil
Date deregistered
Nil
Contribution of the controlled entity (or group of entities) to the profit/(loss) from ordinary activities during the period, from the date of gaining or losing control
Nil
Profit (loss) from ordinary activities of the controlled entity (or group of entities) for the whole of the previous corresponding period
Nil
Contribution to consolidated profit/(loss) from ordinary activities from sale of interest leading to loss of control
Nil


Part 16 - Details of Associates and Joint Venture Entities

Ownership Interest
Contribution to net profit/(loss)

31/12/14
%
31/12/13
%
Year ended 31/12/14
$A'000
Year ended 31/12/13
$A'000
Name of entity
N/A
N/A
N/A
N/A
Associate
N/A
N/A
N/A
N/A
Joint Venture Entities
N/A
N/A
N/A
N/A
Aggregate Share of Losses
N/A
N/A
N/A
N/A
Part 17 - Issued Securities

31 December 2014
$

31 December 2013
$
Share capital



1,296,710,239 (31 December 2013: 1,221,196,804) fully paid ordinary shares
60,381,262

57,725,955




The following movements in issued capital occurred during the period:






Year 
Ended 
31 December 2014
Number of Shares

Year Ended 31 December 2013
Number of Shares




Balance at beginning of the period
1,221,196,804

896,087,712
Issue of shares at 2.0 cents each
-

75,000,000
Issue of shares at nil consideration
-

2,000,000
Issue of shares at 2.2 cents each
-

54,545,455
Issue of shares at 2.2 cents each
-

186,363,637
Issue of shares at nil consideration
-

5,200,000
Issue of shares at nil consideration
-

2,000,000
Issue of shares at nil consideration
2,000,000

-
Issue of shares at 4 cents each
40,400

-
Issue of shares at 4 cents each
132,500

-
Issue of shares at 2.5 cents each
800,000

-
Issue of shares at 5 cents each
487,805

-
Issue of shares at 2.5 cents each
3,250,000

-
Issue of shares at 2.5 cents each
1,750,000

-
Issue of shares at 3 cents each
2,100,000

-
Issue of shares at 4 cents each
2,500

-
Issue of shares at nil consideration
2,666,666

-
Issue of shares at 3 cents each
1,000,000

-
Issue of shares at 3 cents each
1,000,000

-
Issue of shares at 4 cents each
12,750

-
Issue of shares at 4 cents each
813,750

-
Issue of shares at 4 cents each
45,894,329

-
Issue of shares at nil consideration
12,900,000

-
Issue of shares at 4 cents each
662,735

-

1,296,710,239

1,221,196,804

Options







The following options to subscribe for ordinary fully paid shares are outstanding at balance date:
 7,400,000 ESOP options exercisable at 3 cents each on or before 23 November 2015;
 5,000,000 options exercisable at 4 cents each on or before 23 May 2018; 
 5,000,000 options exercisable at 8 cents each on or before 23 May 2018;
 1,000,000 options exercisable at 5 cents each on or before 21 May 2019;
 1,000,000 options exercisable at 7.5 cents each on or before 21 May 2019; and
 2,000,000 options exercisable at 10 cents each on or before 21 May 2019. 
Performance Rights
The following performance rights are outstanding at balance date:
 13,333,334 incentive performance rights convertible to shares (subject to performance and time based vesting conditions) as approved by shareholders on 31 July 2012; and
 20,000,000 incentive performance rights convertible to shares (subject to performance and time based vesting conditions) as approved by shareholders on 20 May 2014.

Part 18 - Segment Information
AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance. 
The continuing operations of the Consolidated Entity are predominantly in the electric two-wheel vehicles manufacture and distribution industry.
In prior years, reported segments were based on the geographical segments of the Group, being Australia, Spain and China. This assessment of identifiable segments has not changed in the current period, as management accounts and forecasts submitted to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance are split into these same components.
The electric two-wheel vehicles segment is managed on a worldwide basis, but operate in three principal geographical areas: Australia, China and Spain. In China, manufacturing facilities are operated in Nanjing.

Continuing Operations

Australia
$A
China
$A
Spain
$A
Intersegment elimination
$A
Consolidated
$A


Year ended 31/12/14
Year ended 31/12/13
Year ended 31/12/14
Year ended 31/12/13
Year ended 31/12/14
Year ended 31/12/13
Year 
ended 31/12/14
Year 
ended 31/12/13
Year ended 31/12/14
Year 
ended 31/12/13












Revenue











Segment revenue

-
-
45,098,053
25,174,809
-
-
-
-
45,098,053
25,174,809
Result











Segment result

(1,971,459)
(911,751)
2,556,609
1,338,744
(108,865)
(22,533)
-
-
476,285
404,460












Assets











Segment assets

1,385,429
2,754,810
52,316,559
42,182,395
-
114,302
(21,930,435)
(20,288,101)
31,771,553
24,763,406












Liabilities











Segment liabilities

(1,054,661)
(85,465)
(30,365,834)
(26,354,897)
-
(879,743)
21,930,435
20,288,101
(9,490,060)
(7,032,004)
The principal activity of the continuing Consolidated Entity is the manufacture, marketing and distribution of electric two-wheel vehicles.

Part 19 - Subsequent Events
Vesting of Performance Rights
On 2 January 2015, the Company issued 1,000,000 fully paid ordinary shares to Mr Yiting Chen and 1,000,000 fully paid ordinary shares to Mr Oliver Cairns as a result of vesting of Class B incentive performance rights as approved by shareholders on 31 July 2012.
Exercise of Options
On 2 January 2015, the Company issued 22,817,621 fully paid ordinary shares following the exercise of 22,817,621 listed options exercisable at $0.04 on or before 31 December 2014. The remaining 122,743,307 listed options lapsed unexercised and have been cancelled.
Apart from the above, there were no other significant events subsequent to year ended 31 December 2014 and prior to the date of this report that have not been dealt with elsewhere in this report.
Part 20 - Audit/Review Status
This report is based on accounts to which one of the following applies:
(Tick one)
The accounts have been audited

The accounts have been subject to review

The accounts are in the process of being audited or subject to review
The accounts have not yet been audited or reviewed

If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification:
Not applicable
If the accounts have been audited or subject to review and are subject to dispute or qualification, a description of the dispute or qualification:
Not applicable

This information is provided by RNS
The company news service from the London Stock Exchange
  END
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