Windflow to sack staff as UK, NZ energy markets remain slow
Windflow Technology [NZAX: WTL], the unprofitable wind turbine manufacturer, will sack staff to reduce costs in the face of slow planning and production in the UK and weak demand in the New Zealand market.
The Christchurch-based company said it will reduce staff numbers as it focuses on the UK market for sales of its wind turbines, it said in a statement yesterday. The company shifted its focus away from New Zealand, where oversupply of electricity has sapped demand and investment in renewable technology.
"This is a difficult decision that the board has come to, 2014 has seen some good progress in the UK," said chief executive Geoff Henderson. "However Windflow has yet to achieve profitability after several years of difficult trading conditions. We will be looking at a number of options for reducing overheads as well as obtaining additional revenues by licensing the company's designs."
The company believes it will eventually get the traction it has sought in the UK for small-scale installations of its turbines under a British government-assisted scheme that offers a guaranteed price for electricity sold back into the UK national grid for a 20-year period. Windflow installed three turbines in late 2014, but further projects have been delayed because due a withdrawn planning process and a production gap for its turbines.
Last year the company widened its loss $4.96 million in the year ended June, 2014 from $4.24 million a year earlier. Revenue soared to $1.5 million, from $146,000 a year earlier.
Shares of the New Zealand Alternative Index-listed company last traded at 6 cents and has dropped 40 percent over the past 12 months.