Future Mobility Solutions turns to a first-half loss on litigation costs

The company said its acquisition of a 70% interest in Sillinger SAS was completed in August.

Auckland-based Future Mobility Solutions, formerly called Sealegs, turned to a first-half net loss, largely due to litigation costs in an intellectual property case.

The company, which manufactures and sells amphibious boats and systems in New Zealand and overseas, reported a net loss of $514,000 in the six months to Sept. 30, compared with a profit of $374,900 in the same period a year earlier. Revenue lifted to $12.3 million from $8.4 million in the prior period.

The company said its acquisition of a 70 percent interest in Sillinger SAS was completed in August, and the acquisitions of Sealegs Europe and Lancer Industries completed in September and October respectively. Of the $3.9 million increase in revenue, some $1.8 million related to Sillinger, it said.

The litigation fees, which were $669,000, involve a case where its wholly owned subsidiary Sealegs International Ltd has commenced action against Orion, Orion Marine and Smuggler Marine, over the alleged infringement of Sealegs International's intellectual property. It also reported $50,000 of acquisition costs, which impacted net profit.

Looking ahead, it said that recently completed and announced acquisitions will result in a "significant increase" in the scale of the group, assuming all acquisitions proceed as planned. The company reported revenue of $17.7 million in the 2017 financial year and expects to report group revenue of "at least double that level in the future," it said.

It noted this is not a forecast but an indication of the scale of growth achieved through acquisitions.

The company grew out of amphibious boat maker Sealegs, changing its name and NZX stock ticker in January, after signalling plans to expand into new markets such as drones and sea structures.

Its shares last traded at 13.5 cents and have gained 35 percent over the past 12 months.

(BusinessDesk)