Amphibious boat maker Sealegs has repaid a $500,000 loan to the ANZ Bank after breaching a banking covenant.

The breach, outlined in the company’s just-released annual report, was for a negative variance of more than 10% between budgeted and actual full year net profit.

Sealegs, which makes wheeled boats, posted a loss of $5.76 million for the year to March, against a loss of $1.7 million last year.

Operating revenue was up 20% at $11.5 million but the bottom line was hit by IFRS and a one-off cost of cancelling the Employee Share Option Plan.