Wellington Drive sees profit in 2013, first since listing
Wellington Drive Technologies is forecasting a profit next year, the first since listing on the NZX in 2001.
BUSINESSDESK: Wellington Drive Technologies is forecasting a profit next year, the first since listing on the NZX in 2001, as its turnaround cost cutting drive starts to widen the margin on sales of its energy efficient refrigeration motors.
The Auckland-based company achieved its revenue target of $11.5 million in the first quarter 2012, chief executive Greg Allen told shareholders at today's annual meeting.
"Quarter one 2012 was our first indication that some of our action plans are focused on the right things, with our performance versus our financial plan showing a good start to the year," he said.
Last year, the company announced it was embarking on various capital raising initiatives to keep the business afloat as it struggles to achieve profitability.
It launched a restructuring programme designed to reduce costs and improve cashflow.
"This turnaround plan drives a more disciplined approach to growth in our core refrigeration market and in particular a shift from building scale, to a sharp focus on profitable growth from selected customers," chairman ony Nowell said.
"We expect continued organic growth from our existing commercial refrigeration customers and are seeing the business quoting on several new customer projects in America and Europe."
Wellington Drive expects its turnaround plan to deliver total revenue of $NZ40m in 2012, up from $35m last year.
It also signalled a gross margin run of 17% by the end of the fourth quarter.
In February, the company posted a net loss of $14.7m for calendar 2011, little changed from the loss of $14.8m a year earlier.
Operating costs increased to $13.3m from $12.6m.
Wellington Drive shares have shed 19% this year, closing the day on 18 cents.
Hannah Lynch
Wed, 16 May 2012
Wed, 16 May 2012
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Wellington Drive sees profit in 2013, first since listing
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