Business
Update on investment in Revolve Performance
Update on investment in Revolve Performance.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 2244A Vela Technologies PLC 06 June 2016 \n\n06 June 2016\n \nVela Technologies plc\n \n(\"Vela\" or the \"Company\")\nUpdate on investment in Revolve Performance Limited\nThe Board of Vela Technologies plc (AIM: VELA), the investing company focused on early-stage and pre-IPO disruptive technology investments, announces that Revolve Performance Limited (\"Revolve\"), one of Vela's portfolio companies, has provided the board of Vela with an update on Revolve's recent trading performance. In June 2015 Vela invested £50,000 in Revolve and holds a minority interest in the share capital of Revolve.\nRevolve is an automotive engineering business that also owns a leading performance parts brand, Mountune. Mountune's products are used by consumers and racing teams to enhance engine performance. The company has exclusive rights to supply branded and warranted performance parts through the Ford Dealership networks in the UK and US.\nIn June 2015 Rockpool Investors provided a growth loan of £1.5 million to Revolve and equity funding of £1.5 million in EIS qualifying shares. Vela invested £50,000 in the equity funding round.\nIn the year to 31 December 2015 sales for Revolve increased by 6% to £8.5 million and EBITDA increased by 9% to £530,000. EBITDA was lower than expected due to sales growth being slower than planned. \nIn the three months to 31 March 2016 sales were £2.8 million which were 44% ahead of the comparative period in 2015, with a particularly strong contribution from Mountune in the US. In the three months to 31 March 2016 EBITDA was £229,000, 8% ahead of the comparative period in 2015.\nThese financials are based on Revolve's unaudited management accounts with final audited accounts for the year to 31 December 2015 expected to be available in June 2016.\nThe Board of Vela will announce further updates on the investment in Revolve at the appropriate time.\nAntony Laiker, Executive Director of Vela, made the following statement:\n\"Since our investment 12 months ago, Revolve has performed and evolved broadly in line with our expectations with the Mountune US operations starting to make a material contribution to Revolve's overall business. We look forward to this trend continuing in the future with a resulting positive impact on the valuation of our investment.\"\n \nFor further informat...