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

 

Wellington Drive says profit in 2013 ‘challenging’

Wellington Drive says profit in 2013 ‘challenging’, seeks funding partner

Aug. 29 (BusinessDesk) - Wellington Drive Technologies, which makes energy-efficient motors, narrowed its first-half loss and said achieving a profit in 2013, its first since listing in 2001, will be “challenging” given the weak outlook for Europe

The Auckland-based company had flagged the prospect of positive earnings before interest, tax, depreciation and amortisation in 2013 at its annual meeting in May and said today that target “remains our objective.”

The net loss in the six months ended June 30 narrowed to $3.29 million, from a loss of $6.99 million a year earlier, Wellington Drive said in a statement. Sales jumped 23 percent to $22.3 million, outpacing an 11 percent gain in cost of sales. Operating expenses fell to $5 million from $6.3 million.

The ebitda loss of $1.9 million was down from $6 million in the first half last year. The ebitda loss for the second half is forecast at $2.5 million.

The company said its forecasts show it has enough cash to continue to operate for the next 12 months though there were “significant risks to these forecasts” and it has begun to look for “a strategic partner who will invest in the business.”

“Demand from our European customers weakened during the first half and we continue to experience poor demand visibility from this market,” it said.

Latin America demand “was strong” in the first half but some signs of weakness were emerging toward the end of the second quarter and forecast full-year revenue would be $35 million to $38 million, below its previous forecast of $40 million.

Shares of Wellington Drive last traded at 14 cents, valuing the company at $9.4 million. The stock has fallen from as much as $7.38 in late 2007.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Electricity Authority: Review Of Competition In The Wholesale Electricity Market Raises Questions

In March 2021 the Electricity Authority announced it would conduct a review into competition in the wholesale electricity market. The period of the review covers the sustained elevated electricity prices since an unplanned outage at the Pohokura gas facility in Spring 2018... More>>


Government: RSI ‘State Of The Nation’ Report Published
latest research, science and innovation system report card is now available, and outlines how the system is performing, Research, Science and Innovation Minister Megan Woods has announced. “The report seeks to increase transparency, act as a reliable data source and stimulate discussion... More>>




Fonterra: Increases 2021/22 Forecast Farmgate Milk Price

Fonterra Co-operative Group Limited today increased and narrowed its forecast Farmgate Milk Price range to NZD $7.90 - $8.90 per kgMS, from NZD $7.25 - $8.75 per kgMS. The midpoint of the range, which farmers are paid off, has increased to NZD $8.40 per kgMS, from NZD $8.00 per kgMS... More>>




Pamu & Westpac: Market-leading Sustainability-Linked Loan

Westpac NZ and Pāmu have signed New Zealand’s most comprehensive Sustainability-Linked Loan to date, also the largest in the agricultural sector, and the first involving a state-owned enterprise. Pāmu, also known as Landcorp, is New Zealand’s biggest farming business. It will borrow $85m from Westpac NZ over three years... More>>


Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>