Perth-based Optima Corporation Ltd - the parent company of Vmoto Motorcycles, has increased its revenue for the March quarter to $10.4 million, up 2,356 per cent on the same time last year.
Perth-based Optima Corporation Ltd - the parent company of Vmoto Motorcycles, has increased its revenue for the March quarter to $10.4 million, up 2,356 per cent on the same time last year.
The full text of a company announcement is pasted below
Surging scooter and all terrain vehicle sales throughout Australia and Europe have driven a surging 500% rise in 3rd quarter revenue announced today by ASX-listed Optima Corporation Limited.
Optima's revenue for the three months to March 31 this year was A$11.2 million compared to A$1.8 million in the preceding December quarter.
The March result is the first full quarter of contributions from the international and national scooter businesses progressively acquired by Optima since mid last year.
Scooter and ATV unit sales for the period just concluded climbed 525% to over 5,000 units from 800 in the preceding three months.
The bulk of the December quarter revenue was generated by the Australian scooter business as Optima continued the phase out of its wetsuit and surfwear accessory operations based in the USA.
The sales surge comes as Optima is set this week at a shareholders meeting in Perth to complete its total transition to international scooter retailer, distributor and marketer from its surfwear retail origins.
Shareholders will meet in West Perth tomorrow (April 19) to approve recent capital raisings and to change Optima's (ASX: "OPC") name to "Vmoto Limited".
"Subject to shareholder approval tomorrow, our growth strategy to become a fully integrated international motor cycle and scooter business is well and truly on track," Optima's Managing Director, Mr Blair Sergeant, said today.
"The exceptional sales and revenue performance in the first three months of this year is better than forecast and provides the impetus to now build significant cash flow and balance sheet strength on behalf of our shareholders," Mr Sergeant said.
"The proposed name change from Optima to 'Vmoto Limited' is timely and will now more accurately reflect the new activities, scope and global focus of this business."
Optima also announced today that ahead of tomorrow's shareholder meeting, it was hopeful of shortly disposing of the last of its non-core scooter operations, the Creatures of Leisure surfwear accessories business in the USA.
The Company late last year disposed of its wholly-owned surfwear business, West Surfing Products (USA), as part of the new dedicated focus as a global distributor of scooter and ATV's.
Shareholders tomorrow will vote to approve the previously announced A$3 million capital raising to sophisticated and institutional investors, including prominent West Australian investor, the Wyllie Group.
Euroz Securities Limited was lead manager to the capital raising, which included a number of other Institutional investors.
The A$3 million proceeds from the placement will be used to fund Optima's final payment of US$1.5 million to complete the acquisition of the Freedomotor Company Limited and provide additional working capital.
Optima's push into scooters commenced with the acquisition in June last year of the global operations of Vmoto Motorcycles, owner and distributor of the class-leading Vmoto scooter brand, and a range of ATVs, throughout Australia, New Zealand, the United States and U.A.E.
This was followed by the acquisition effective from 1 January this year of a 100% stake in Shanghai-based Freedomotor Company Limited, an international scooter/motorcycle trading and distribution group which is expected to contribute over $50 million in revenue for the year ended 30 June 2008.
Freedomotor is one of China's largest independent distributors and exporters of motorcycles and scooters, with distribution rights in more than 50 countries for scooter, ATV and motorcycle products.
With more than 80 clients in Europe, Australia, North America, South America and South Africa, Freedomotor's product mix includes scooters, various category motorcycles, ATVs and hi-performance off-road karts.
Optima is monitoring the sales trend of both Vmoto and Freedomotor to assess the upside of re-branding all Freedomotor products under the Vmoto nomenclature, to create a global brand
