Cycling technology company Cycliq Group (ASX: CYQ) has reported a 52% surge (quarter on quarter) in unit sales for the three months ending September 2017.
Based in Perth, Cycliq Group listed on the ASX in October 2016 and has experienced steady growth since, with September 2017 quarter unit sales the highest on record.
As a result, revenue for the quarter was up 28% to $850,554, compared to the July 2017 period.
Cycliq Group supplies high definition action cameras and lighting safety devices to the world’s cycling industry.
“Cycliq is getting traction from our expanded global network of sales channels,” Cycliq Group executive chairman Chris Singleton said.
“Due to the popularity of our products, we are seeing a close correlation between the expansion of our sales network and sales volumes,” he added.
In addition to sales growth, Cycliq has been streamlining processes and developing supply chain efficiencies to boost its profit margins.
This has proved successful with the company reporting gross margin of 40% in the September period compared to 22.6% for the 2017 financial year.
According to Cycliq Group, more than 80% of the company’s revenue came from overseas, with UK distributor Madison boosting the number of stores stocking Cycliq’s products.
To facilitate this revenue growth and target European markets, the company registered for value-added tax in France.
“There are more than 100 million cyclists across the Eurozone, which makes this a massively important market for Cycliq,” Mr Singleton said.
The company’s HD cameras and light devices are currently sold in 50 countries worldwide to commuters, mountain bikers, racers and professional cyclists, and this is set to expand.