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Motorcycle Holdings comes off the throttle in wake of lockdowns

Business

Brisbane-based Motorcycle Holdings will take a hit of up to $10 million from the Victorian lockdown.

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The company had previously said the early stages of the COVID-19 impacts had driven more sales as people looked for an escape and gained access to their superannuation funds.

However, said the lockdown in Victoria would affect six stores in the state. It has about 100 staff in those stores, 70 per cent of whom are on JobKeeper.

“The stores will remain open to fulfil contactless ‘click and collect’ and online sales orders, however, sales may be impactedby up to $9 million over the six-week period,” chief executive David Ahmet said.

The company has 48 franchises operated from 31 dealerships and eight retail accessory locations in Queensland, New South Wales, Victoria and the Australian Capital Territory.

“The Cassons (brand) wholesale sales into Melbourne may also be impacted up to $1 million.

“Our stores in other states continue to trade strongly and enjoy high levels of demand and profitability. Liquidity remains sound, with the cash position continuing to improve as trading is strong.

“Cash on hand exceeds $40 million.”

The company had previously that when restrictions were relaxed in May it experienced a dramatic increase in sales that followed through to June. The company said its underlying earnings before interest, tax, depreciation and amortisation would be between $24 million to $27 million for the financial year.

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