Cyclic forges another deal in expanding its online sales network
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Cycliq Group (ASX:CYQ ) announced on Monday that it had added Australian cycling and multisport retailer Pushys Online to its rapidly expanding online sales and distribution network.
CYQ is the leading supplier of high-tech bike safety and action camera accessories, including rear-facing all-in-one safety light and HD camera devices.
Pushys is one of Australia’s largest online cycling retailers and was recently included in the 2017 Power Retail Top 100 list. The group is Australia’s leading online bike retailer selling top brand Road, Mountain and BMX bikes, Scooters and Multisport accessories with highly respected knowledge and skills in the local market.
This arrangement comes only days after CYQ secured an agreement with online bike supplier Cycling Express which effectively expanded the availability of the company’s products across the Asia-Pacific region.
This initiative was well received as it came on the back of the company launching its cycling products on Amazon Japan just over a week ago.
Harking back to this most recent collaboration, the company’s Chairman, Chris Singleton said, “The agreement with Pushys is further evidence of Cycliq implementing our revised sales and marketing strategy with the company focused on increasing the channels by which our customers can access our products”.
The agreement will also increase the visibility of the company’s brand across Australia as Pushys promotes CYQ’s products on its online sales platforms.
Margin expansion through direct sales vital in growing the bottom line
As is the case with the other recent agreements forged by CYQ, direct sales accounts with online retailers streamlines the distribution process for the company’s products and results in higher margins for both CYQ and the retailer.
Singleton also highlighted that road safety for cyclists is at the core of the value proposition for the group’s products, and on this note he anticipates the agreement with Pushys will introduce CYQ to a new segment of customers who are involved in multi-sport activities such as triathlons, BMX and mountain biking.
In the last three months, the company has made rapid progress, adding ten new online retailers to its network of global distributors, more recently including Cycle Life in Malaysia and prominent Australian distributor, 99 Bikes.
Singleton said on Monday that CYQ is already beginning to see encouraging sales figures as a result of the shift in the company’s distribution strategy, and consequently data for the six months to June 30, 2017 could attract investor interest.
In the last three weeks the company’s share price has increased by approximately 20%, suggesting that management’s progress in expanding its sales network is gaining recognition.
It should be noted share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
