Over three million Aussies cycled every week in 2020—be it to get to work or for recreation. Interestingly enough, only about 30% of the purchased bikes belonged to kids.
Cycling-conducive areas and health consciousness have urged people to cycle, which has boosted the business of related goods and services—like bike cameras and safety appliances by Australian-based smart safety, action and sports cycling company Cycliq (ASX: CYQ). With people willing to spend generously, i.e. up to $1,000, on their cycles and safety, Cycliq’s profitability is no surprise.
The Company reported a 26% year-on-year increase in gross profit to $1.3 million in the December quarter, up from $1 million in the same quarter in 2021. The uptick was largely thanks to Cycliq’s reduced cost base, better marketing strategies and streamlined global operations. These also helped the Company achieve a closing cash amount of $1.05 million.
Its net cash flow from operations for the quarter amounted to $474k, with operational expenses mainly comprising product and manufacturing costs of $1.02 million, administration and corporate costs of $105k and staff costs of $291k.
Millions of people buy a cycle every year. Add to that Cycliq’s cash flow positivity, and you can tell there is a penchant for a better life in Australia. At the same time, safety for cyclists is an ever-growing concern. By July 2022, about 40 road fatalities involved cyclists. That’s why, since 2012, the Company made it its mission to make cycling safer, thus developing the Fly6 and Fly12 dashcams. Cycliq believes that if road users (like car or truck drivers) know that they are being filmed, they are less likely to do something rash.
The Company’s trademark dashcam—the Fly12 Sport—is super popular among cyclists. Its price is 30% higher than that of Fly6 Gen3, valued at $448.35. Following its launch in September 2022, it already helped usher in about $500k in revenue by October 2022. A strong front light and seven hours of battery life in the camera ensure the cyclist’s safety even at night. Plus, its super sharp ultra high definition camera captures car nameplates accurately, so nobody gets away with messing with your bike and life. All in all, the camera is a great arsenal in your cycling gear, especially from a legal viewpoint.
The success of Fly12 has compelled Cycliq’s research and development department to look into other innovations, too. Thankfully, it’s got the money for it. On October 18, 2022, the Company received a $172,000 cash refund under the Federal Governments Research and Development Tax incentive Scheme.
Plus, to reach its target audience better, Cycliq has undertaken targeted marketing. For this spring, it is all geared up to deploy aggressive marketing strategies targeted at Northern hemisphere markets.
Under new leadership—with Xavier Kris appointed Chair in June 2022 and Carla Healy becoming Joint Company Secretary in January this year—Cycliq has taken its smart safety mission to a new level. One that people seem to be comfortable riding on.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.