Tech: Vmoto jumps 22% as electric scooter sales pick up speed
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It’s been a good morning for electric scooter maker Vmoto (ASX:VMT), after a trading update revealed strong sales momentum in the September quarter.
The company said sales increased to 6027 units, up almost 100 per cent on the previous quarter.
That growth was driven in part by the Chinese market, where Vmoto sold 1188 units compared to just 30 in Q2.
The ramp up in sales meant that cash-flow from operational activities turned positive in the quarter. In response, investors sent the stock back towards 2019 highs with a morning gain of more than 20 per cent:
The company said it had firm orders for 4421 units as at September 30, with more deals signed with new and existing customers over the past month.
In particular, Vmoto said it is a beneficiary of the broader regulatory environment in Europe, where governments in multiple jurisdictions are offering incentives to switch to electric-powered vehicles.
In addition to the consumer market, Vmoto said it is engaging with B2B opportunities on a number of fronts. The company recently attended the Parcel and Post Expo in the Netherlands, where it shipped around 170 units to a vehicle-rental platform. It’s also currently in negotiations with an Italian-based vehicle rental company.
Vmoto “is also on track to develop a new model of electric delivery scooter expected to be launched in the upcoming EICMA exhibition to be held in November 2019 in Milan”, the company said.
Telco company Uniti Group (ASX:UWL) confirmed the acquisition of OPENetworks in a cash and share deal. Uniti will issue 6,492,425 ordinary shares at $1.4461, together with a net cash payment of $18,334,090. “This acquisition brings together the second and third largest private fibre network businesses, and is an exciting development for UWL as OPEN has a significant pipeline of contracted private fibre ports,” UWL chairman Graeme Barclay said.
And wastewater treatment company Fluence Corporation (ASX:FLC) scores a US$3 million follow-on order for its Aspiral units in the Chinese province of Hubei. “The units will be deployed at service stations and toll stations along highways,” FLC said, with shipments to begin immediately and extend into 2020.