Vectrix in Small Cap

Vectrix makes progress in drive to sell electric bikes

Vectrix, the American company that makes battery-powered, high performance and zero emission bikes, steered itself to triple digit sales growth last year as strategies to improve distribution paid off.

In an update ahead of results for the year to September 30, Vectrix said it had sold 1,184 bikes to dealers – known as Sell In – representing a 156% increase over the previous financial year.

Of those, 204 bikes were sold in the first half and 980 bikes were sold in the second half. The company credited the 'half-on-half' growth rate of 380% to its move from being an R&D development stage company into an organisation fully focused on commercialising its product.

Revenue for the year based on the number of units sold to end users – known as Sell Out – rose by 738% to $6.7 million.

Michael Boyle, chief executive of Vectrix Corporation said: “The second half of the financial year has been an exciting time at Vectrix. Strategies to stabilise the business are taking hold, cost reductions have proved effective and the acceleration of Sell-In, as a result of the focused expansion in distribution, is continuing. All of these factors, coupled with the expanded 2009 product strategy will allow us to take further steps towards achieving the success we expect from these markets and our business.”