Tuesday, 19 February 2019


HALFYR: FMS: (NZX:FMS) Half Yearly Result to 30 September 2017

29 Nov 2017 08:31NZX
The Directors of Future Mobility Solutions are pleased to report the
following results for the six- month period ended 30 September 2017:

o Revenue of $12.3m, an increase of $ 3.9m or 47% over the prior
corresponding period ("PCP")
o An increase in gross margin from $2.7m to $3.5m or 28% over the PCP
o EBITDA of $0.5m compared to $0.7 in the PCP
o Net loss after tax of $0.5m, down from a profit of $0.4m in the PCP

This six-month period has seen the strategy to become a multi-brand marine
and related technology business come to life. The acquisition of a 70%
interest in Sillinger S.A.S was completed in August, and the acquisitions of
Sealegs Europe S.A.S and Lancer Industries Ltd completed in September and
October respectively.

Accordingly, of the $3.9m increase in revenue, $1.8m related to Sillinger.
Excluding Sillinger, revenue improved by 26% which was achieved on the sale
of 55 Sealegs craft and 5 enablement systems which compared to 44 craft and 3
enablement systems sold by Sealegs in the PCP.

Gross margin as a percentage of sales was 28% in the current period. Gross
margin is likely to vary in the immediate future as it will steadily adjust
to reflect all of the Group''s operating businesses over a full year period.
Equally, the Group is seeing margin changes as both the product mix continues
to evolve and, especially, as the Group develops an increased focus on
multiple boat orders to government and commercial organisations rather than
pure leisure users.

The ongoing transformation of the Group from one with a single operating
business, to one with multiple operating businesses around the globe also
required change at the Group level to facilitate this and to manage
activities going forward. While this has increased the cost base of the
Group, there is an expectation that cost efficiencies can be driven through
the Group and will provide an offset to this longer term. This increased cost
base, together with an increase in Marketing and Distribution expenses
associated with increased sales resulted in a decline in EBITDA compared to
that reported in the same period last year.

The loss after tax of $0.5m was mainly attributable to litigation and
acquisition related costs of $0.7m. These costs are classified below EBITDA
in the financial statements.

This is an exciting time for the Group and the Board will continue to
consider acquisition opportunities if they provide a good fit both
geographically and technologically. The transaction to acquire Willard Marine
Incorporated continues to progress well. However, due to delays in obtaining
South African regulatory approval for the acquisition of Gemini Marine, a
condition precedent which was not satisfied, the sale and purchase agreement
has expired. Accordingly, the acquisition will no longer proceed.

The Board also noted that the various recently completed and the announced
acquisitions will result in a significant increase in the scale of the Group
assuming all acquisitions proceed as planned. FMS reported revenue of $17.7m
in its 2017 annual financial statements. Based on an aggregation of the
reported revenue from the latest annual financial statements of each of the
entities expected to form part of the Group, it is expected that FMS will
report Group revenue of at least double that level in the future. To be
clear, this is not a forecast, but simply an indication of the scale of
growth achieved through acquisition. Exchange rates used for translation
purposes, together with changes in the operating landscape will all impact
the revenue reported in the financial year following the year in which the
acquisitions complete.

For further information, please contact:
Mark Broadley
Future Mobility Solutions Limited
Phone +64 9 414 5542

FMS is a holding company for a number of businesses and brands focused on
marine and related sectors and technologies.

These brands include: Sealegs (www.sealegs.com), which is primarily engaged
in the design, manufacture and sale of amphibious systems for marine craft.
Sealegs also manufactures and sells a range of rigid inflatable boats fitted
with the patented Sealegs System; Sillinger (www.sillinger.com) one of the
most trusted manufacturers of Hypalon rigid inflatable boats to the military
and defence sector; and Lancer (www.lancer.co.nz) who are Hypalon and
inflatable engineers that work with customers to produce a product to meet
their needs or solve a problem.
End CA:00311114 For:FMS    Type:HALFYR     Time:2017-11-29 08:31:05
Views: 116
Future Mobility Solutions
 0.1100 Change:
Last Traded:07/02/18 00:20:50 
52-Wk High:0.2000 
52-Wk Low:0.1200