Update on investment in Revolve Performance
06 June 2016
Vela Technologies plc
("Vela" or the "Company")
Update on investment in Revolve Performance Limited
The 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.
Revolve 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.
In 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.
In 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.
In 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.
These 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.
The Board of Vela will announce further updates on the investment in Revolve at the appropriate time.
Antony Laiker, Executive Director of Vela, made the following statement:
"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."
For further information please contact:
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Vela Technologies plc |
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Brent Fitzpatrick, Non-Executive Chairman Antony Laiker, Director
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Tel: +44 (0) 7802 262 443
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Allenby Capital Limited (Nominated Adviser) |
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Nick Athanas/Katrina Perez
Smaller Company Capital Limited (Broker) Rupert Williams/Jeremy Woodgate
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Tel: +44 (0) 20 3328 5656
Tel: +44 (0) 20 3651 2910
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This information is provided by RNS
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