Singe piece carbon fibre composite wheel manufacturer Carbon Revolution made significant progress during its first year as a listed business including growing sales and sale prices, but still reported a big loss.
The Geelong company grew sales 158 per cent during the 2020 financial year to $38.9 million, with 38 per cent of sales coming from new wheel programmes.
However earnings before interest, tax, depreciation and amortisation (EBITDA) were $17.1 million.
Taking into account IPO costs of $87.2 million, the company plunged to a loss after tax of $114 million, up from $27.2 million in the prior year.
Despite the loss the results have plenty to be positive about with the company now awarded or proposed for 11 vehicle road wheel programmes for five global manufacturers.
Six of these programmes have been publicly announced, including Ford’s Mustang and Ferrari, and are in production. Its first development programme for an Asian manufacturer is underway.
During the year annualised wheel production rose to 30,0000 wheels and the average price achieved per wheel rose to $2,643.
CEO Jack Dingle said: “We delivered very strong growth for the year, notwithstanding the significant challenges posed by Covid-19, which impacted our customers, supply chains and production processes.
“Our customers are now back in production and global supply chains appear to be functioning reasonably well.”
The company is investing heavily in new equipment and further automation as it moves to full industrialisation of its processes.
Improvements in quality include fast tracking a new wheel fascia technology which improves finished wheel aesthetics and cuts labor content.
Carbon Revolution expects continuing strong growth driven by new wheel programmes.
“The company aims to leverage its technology into adjacent industries, such as the aerospace and transportation sectors, and will continue to invest in this in FY21.”
Subsequent to the IPO the company raised a further $27.7 million from investors and shareholders.
Picture: Carbon Revolution
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