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

 


Woosh posts annual loss as costs mount, will need more cash

Woosh posts annual loss as costs mount, will need more cash from parent

By Paul McBeth

March 4 (BusinessDesk) - Woosh Wireless Holdings, the local internet service provider, posted a loss in the 2013 financial year and will need more cash from its unprofitable Californian parent, Craig Wireless Systems, to meet future cash-flow requirements.

The Auckland-based company made a net loss of $2.59 million in the 12 months ended Aug. 31, 2013, compared to a loss of $2.39 million in the 10 months ended Aug. 31, 2012, according to financial statements lodged with the Companies Office. Woosh made an operating loss of $1.45 million on sales of $16.1 million. It held cash and equivalents of $448,000 as at Aug. 31.

The losses decreased Woosh’s cash resources and indicated a “material uncertainty that may cast doubt about the ability of the group to continue as a going concern,” according to a note to the accounts. Craig Wireless intends to provide additional support and won’t require repayment of almost $7 million in shareholder loans, it said.

“Ongoing operation and cost improvement initiatives are underway to reduce operating losses,” the accounts said. “However, it is forecast that further cash injections will be required in order for future cash-flow requirements to be met.”

The accounts were tagged by new auditor William Buck Christmas Gouwland over Woosh’s ability to continue as a going concern because of the company’s losses and net liabilities of $2.44 million, though they didn’t qualify their opinion.

Woosh and Craig Wireless president Gary Birkland said the parent company has “committed management resource and continue to financially support Woosh to ensure that it is able to fulfil its potential in the New Zealand wireless broadband market.”

Craig Wireless bought 51 percent of Woosh for US$5.5 million in 2011 in a deal to satisfy $20.6 million of debt owed to then-investor Kuwait Finance House. The following year it lifted its stake to 75 percent with an equity injection of US$1 million.

TSX-listed Craig Wireless has its own issues to continue as a going concern, with accounts for the three months ended Nov. 30 showing the telecommunications company obtained a US$2 million loan from chief executive Boyd Craig and was holding “active negotiations with other potential sources of third party financing as required in the cash flow model.”

At the time, Craig Wireless said the financing hadn’t been completed, and “would materially impact the company if the funding is not available.”

Woosh’s parent company made a loss of C$10.7 million on sales of C$13.5 million in the year ended Aug. 31, and reported a loss of C$1.9 million on sales of C$3.2 million in the three months ended Nov. 30. It held cash resources of C$898,000 as at Nov. 30.

The New Zealand assets were valued at C$8.57 million as at Nov. 30, making up the bulk of Craig Wireless’s almost C$12 million in non-current assets.

Last year, Craig Wireless subsidiary Craig Wireless New Zealand Spectrum Operations bought management rights for an additional 35 megahertz in the 2.3 gigahertz range in New Zealand from state-owned Kordia for $2.2 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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