The VivoPower International PLC (VVPR) is taking a plunge today as profit takers stepped in. The stock has seen a price hike of 25.23% on Tuesday. That came on the heels of announcement of preliminary results for the fiscal year ended June 30, 2020 by the company on the day.
In addition to sharing progressive annual figures, the company also announced to enter into the electric vehicle regime. The strategic decision was made after comprehensive review of the sector spanning over a year. Interests of the company’s existing customer also drove the company coming to that expansion plan.
It will initially target existing Australian customers in sectors like infrastructure and mining. The company will focus on providing them with light electric vehicles (LEV). Afterwards it is in plans of expanding in the sector globally. Company’s strategic review estimated that only in Australia alone, demand for light commercial vehicle is worth $12 billion annually. Pick-up trucks are main point of focus of that market. Mining and infrastructure sectors have larger demand for those vehicles.
To enter the EV sector and differentiate itself from the peers, VivoPower will adopt three-dimensional strategy. The company dubbed the move as sustainable energy solution (SES). Through this service company will provide customers with EVs and batteries on lease. Other services in that strategy includes second life application of EV battery and power sources like microgrids and charging facilities.
Company’s Executive Chairman and Chief Executive Officer Kevin Chin showed his satisfaction with the financial results. He was optimistic about the performance in the face of disruptions caused by COVID-19 lockdowns. He also appreciated the implementation of business continuity plans during the pandemic to safeguard all stakeholders.
Strengthened business remained helpful to upbeat business forecasts. Moreover, company is not only narrowing the last year gaps but is also exploring new business opportunities.
Also, we are pleased to positively respond our customers’ needs with EV strategy. We will remain focused on providing a complete EV solution to our customers. In doing so, we will make use of our expertise in power services. And our newly purpose-built battery technology arm will also get benefit of it.