Cycliq delivers strong revenue growth in March quarter
Impressive revenue growth figures released by Cycliq Group (ASX: CYQ) on Monday have come on the back of seven separate distribution agreements and/or launches announced in April.
CYQ is the leading brand in high definition camera and lighting combinations, delivering cycling safety and action camera solutions for commuters, mountain bikers, racers and professional cyclists alike. The company supplies its products to 48 countries worldwide, and this is quickly growing following the establishment of new distribution agreements in the last month.
However, given the company is only in the early stages of entering markets such as North America, Europe and the Asia-Pacific investors should seek professional financial advice if considering this stock for their portfolio.
CYQ’s intended markets have total cyclist numbers of about 260 million, which means there is substantial scope for sustainable long-term growth.
On that note, it was clearly evident in the company’s results for the three months to March 31, 2017, a period in which there was no benefit from the April distribution agreements negotiated, that there is substantial upside on the horizon.
Third quarter revenues were $437,451, representing a year-on-year increase of 85%. Year-to-date revenue is an impressive $1.6 million, an increase of 122%.
Fly12 to assist in maintaining strong sales momentum in 2017
CYQ’s highly sought after Fly12 front facing products only became commercially available in the fourth quarter of 2016, and company chairman Chris Singleton noted that this product had been a key driver of the substantial increase in year-to-date revenue growth.
Having only listed on the ASX in December 2016, the progress the company has made in such a short period of time is not just financially impressive, but it is arguably indicative of the quality of its cycling accessory products which not only feature clever technology but also offer riders safety benefits not previously achievable.
In terms of the March quarter performance it should also be noted that this is traditionally a weaker sales period as it coincides with the post-Christmas lull in consumer spending. More specifically, from a cycling perspective cold and wet weather conditions in many European countries which represent a large portion of the company’s market, are not all that conducive to cycling and outdoor activities.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.