Sales in the April-to-June quarter rose more than expected at Iplayco Corp Ltd (CVE:IPC), the supplier of indoor playgrounds for children.
Sales in the three months to the end of June rose to C$5.51mln from C$4.61mln in the same period of last year. Management had expected sales to be on a par with the preceding quarter's out-turn of C$3.67mln, so the out-performance was substantial.
The shares rose 9.8% to C$0.56 on the results.
Sales to related party Billy Beez, the indoor play barns operator, accounted for 31.0% of sales by Iplayco's manufacturing operations in the fiscal third quarter, down from 41.0% in the corresponding period of 2016.
The period marked the third quarter of Iplayco's financial year and took sales for the first nine months of the year up to C$16.41mln, versus C$11.54mln in the same period a year earlier.
Net income of C$438,936 in the quarter was also better than expected, and marked a sharp increase from C$98,610 in the same period of 2016.
Year-to-date net income was positive at C$1.46mln versus a loss the year before of C$609,369.
“Although Q3-17 resulted in higher than anticipated sales and net income, we expect a moderate decrease in sales and net operating results for our fourth quarter ending September 30, 2017 as compared to Q3-17, due primarily to production scheduling and delivery of certain sales orders" said Scott Forbes, president and chief executive officer of Iplayco.