Business
Update on investment in Revolve Performance Ltd
Update on investment in Revolve Performance Ltd.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 5531C Vela Technologies PLC 16 October 2015 \n \n\nVela Technologies plc\n(\"Vela\" or the \"Company\")\nUpdate on investment in Revolve Performance Limited\n \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.\nIn the eight months to 30th August 2015, Revolve's trading was broadly in line with budget, with lower sales offset by higher gross margins and lower overheads. EBITDA was also above budget. The Mountune Performance US business showed strong growth in line with the forecast, whilst the Mountune Performance UK and Revolve product development divisions fell short of the budgeted revenues. The Board of Vela has been informed by Revolve that, for the full year to 31st December 2015, management expect EBITDA to be in line with the Revolve's forecasts, with the early outperformance offset by lower final quarter sales in the Revolve divisions.\nMountune Performance US sales have grown in line with their forecasts, with July's sales at a record level of £100,000. There has been a significant uplift in orders from Ford dealerships, helped by a marketing initiative from Ford Performance. Ford distributors in Asia and Australia have also recently ordered Mountune products for the first time. Discussions continue with Mazda and Honda in the US with regards to potential significant motor sport and road car projects. \nMountune Performance UK is performing in line with the prior year. The expected growth did not occur due to a delay in the approval of a Mountune Focus ST upgrade by Ford, stock shortages for some products sourced from the Far East, and the delay of a limited edition Ford Focus programme to 2016. Management expect growth to resume in 2016, with the introduction of new product ranges for Ford RS and Mustang cars.\nGross margin was above Revolve's forecast due to a positive sales mix in the Revolve product development division as well as higher margin programmes in the Mountune Racing division. Overheads are lower th...