Wellington Drive misses forecast with annual revenue of $27.9m, shares drop
Wellington Drive Technologies [NZX: WDT], which makes energy efficient refrigeration motors, missed its annual sales forecast and dropped its goal of breaking even on an earnings before interest, tax, depreciation and amortisation basis in 2014, chasing growth instead.
The Auckland-based company reported revenue of $27.9 million in the 12 months ended Dec. 31, missing its target of between $30 million and $33 million, having previously flagged sales would be at the lower end of the band.
Wellington Drive is in the process of finalising its accounts, and expects to post a net loss of less than $3.8 million, having previously forecast a loss of less than $3.5 million. The company said its EBITDA loss was less than $3 million, in line with forecasts.
"The team is very satisfied with the operating and gross margin improvements it has made in 2013, despite the lower than expected revenue in the second half of the year," chief executive Greg Allen said in a statement. "In 2014 we will increase focus on growth projects as we start the first year of our new three-year growth plan."
The company dropped its goal of breaking even on an EBITDA basis in the 2014 financial year, and will instead target 20 percent revenue growth 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.
The shares fell 8 percent to 23 cents today.