Windflow Technology warns of 'inevitable' production gap
Christchurch-based turbine manufacturer Windflow Technology has forecast an unspecified loss next year – but says it will be “significantly lower” than the $7.96m net loss posted in the year to 30 June 2010.The company's outlook for the
Fri, 08 Oct 2010
Christchurch-based turbine manufacturer Windflow Technology has forecast an unspecified loss next year – but says it will be “significantly lower” than the $7.96m net loss posted in the year to 30 June 2010.
The company’s outlook for the coming year – as described in its annual report, released today - depends on whether it can achieve further orders for its unique 500kW two-bladed turbines.
An “inevitable” production gap will occur in early 2011 between the completion of NZ Windfarm’s Te Rere Hau windfarm order and the arrival of anticipated orders from Windflow’s exclusive UK supplier, Scotland-based Ventus Green Energy.
Windflow faced substantial challenges in the 2009/2010 financial year, including a global oversupply of turbines, the volatility of the NZ dollar, and weak growth in domestic electricity demand.
It settled a dispute with NZ Windfarms over turbine certification in April.
Looking forward, Windflow is optimistic that its recent internationally-recognised certification will help attract international orders, particularly in the UK, which has a feed-in tariff system to promote small-scale low carbon generation.
The company is planning further capital raising and will release an offer document, which will include details of the forecast loss, in “due course”.
Windflow Technology shares (NZAX: WTL) last traded unchanged at $1.10.
Fri, 08 Oct 2010
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