Corporate digest

ComfortDelGro

COMFORTDELGRO Corp Australia (CDG Australia) is forecasting a net profit of A$42.1 million in FY2021, up 14.1 per cent year on year.

ComfortDelGro released these details in a Friday (Oct 22) evening bourse filing, even as it mulls an initial public offering of the unit on the Australian Securities Exchange.

CDG Australia expects to post a topline of A$672.6 million in FY2021. Its contract portfolio includes 75 government bus route service contracts, which are forecast to generate about A$553 million in revenue. This makes up most of CDG Australia's forecast passenger transport revenue for the year. Overall, CDG Australia operates over 4,400 vehicles across the country. Its vehicle asset base is supported by 47 bus depots, of which 35 are fully owned.

Its share of the private bus market, by number of buses as at April 20, is estimated to be 17 per cent in New South Wales and Australian Capital Territory, 8 per cent in Victoria, 4 per cent in Queensland and 75 per cent in the Northern Territory.

The company said in its filing: "CDG Australia's bus and depot asset base provides a meaningful competitive advantage and defensive earnings base relative to other operators who do not have such assets at their disposal."

The Australian unit is pursuing growth via acquisitions. It is eyeing "high-quality, defensive businesses that are able to leverage CDG Australia's existing asset base".

"CDG Australia sees significant opportunity to expand within Australia's highly fragmented private-operator market, which includes the ability to create synergies from the many family-owned and operated businesses," the company said.

The unit also anticipates fresh opportunities to tender for new metropolitan bus service contract and to expand into other modes of transport. CDG Australia will tender for projects in the tram and heavy-rail space across Australia and New Zealand. It is likely to team with other strategic partners for future rail-tendering opportunities.

EuroSports Global

SCORPIO Electric, the electric vehicle brand of Catalist-listed luxury-car distributor EuroSports Global, has launched pre-orders for its electric motorcycle, called the X1.

The motorcycle is targeted to hit a top speed of 105 kph and has a projected range of 200 km on each charge. It retails at US$9,800. Delivery of the bikes is targeted around late 2022 and early 2023.