Global expansion results in Cycliq delivering record sales in September quarter

Published at Oct 11, 2017, in Technology

Shares in Cycliq Group (ASX:CYQ) rallied more than 10 per cent in mid-morning trading after the company provided a positive update on its September quarter trading.

Total unit sales were up 52 per cent on a quarter on quarter basis with revenues of more than $850,000 representing an increase of 28 per cent on the previous quarter.

The increase in gross margins to a record high of 39.4 per cent in the September quarter compared with the average of 22.6 per cent in fiscal 2007 indicates that CYQ is benefiting from the efficiencies of changes made to its distribution model over the last 12 months.

On this note, CYQ’s Executive Chairman Chris Singleton said, “We have been working on increasing shareholder value with initiatives aimed at improving our margins, and we have developed efficiencies in our supply chain which will compound when our manufacturing joint venture becomes operational”.

However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.

The joint venture refers to a Memorandum of Understanding negotiated with Thompson and Kenneth Cheung which will provide the company with better buying power and more economical manufacturing through their joint venture partner’s Hong Kong operations.

More than 80 per cent of CYQ’s revenues for the quarter were generated from markets outside of Australia. Consequently, the distribution agreements it has in place in major global regions such as the US, Europe and South-East Asia should work in its favour in fiscal 2018.

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.

Publishers Notice

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.

Facebook
Twitter
LinkedIn