Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Wellington Drive narrows annual loss, tagged by auditor

Wellington Drive narrows annual loss, tagged by auditor

Feb. 28 (BusinessDesk) - Wellington Drive Technologies, which makes energy efficient refrigeration motors, narrowed its annual loss in 2013 in the second year of its turnaround plan, while having its accounts tagged by auditor PwC over its cashflow forecasts.

The Auckland-based company had a net loss of $3.77 million, or 3.49 cents per share, in calendar 2013, down from a loss of $6.33 million, or 8.97 cents, a year earlier, it said in a statement. Sales fell 23 percent to $27.4 million, missing its target of between $30 million and $33 million. Wellington Drive had a loss on an earnings before interest, tax, depreciation and amortisation basis of $2.91 million. Last month it said the EBITDA loss would be lower than $3 million.

“Over the last two years we have significantly reduced Wellington’s internal operating costs and supply chain costs,” chief executive Greg Allen said. “We believe the strategic decisions made, and now being executed around East West and other supply chain improvements, will continue to drive cost out of the business and help to improve financial performance.”

Last month the company dropped its goal of breaking even on an EBITDA basis in the 2014 financial year, and will instead target revenue of between $30 million and $35 million. It forecasts a 2014 EBITDA loss of less than $2 million and a net loss below $2.7 million.

Allen said the decision to sacrifice short-term profitability was to accelerate growth plans, and will “ensure it does not forgo new market, new product and new customer opportunities.”

Wellington Drive’s accounts were tagged by auditor PwC, which raised an ‘emphasis of matter’ over its ability to achieve forecast cash flows, which it said was “inherently uncertain” and may require additional funding to keep the company operating as a going concern.

“These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern,” the auditor’s report said.

The company had an operational cash outflow of $2.45 million in the year, compared to an outflow of $3.45 million in 2012. It raised $5.76 million through a share issue, which helped leave it with cash and equivalents of $2.98 million as at Dec. 31.

The shares were unchanged at 18.5 cents today, and have dropped 23 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news