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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news