Wellington Drive Technologies halted pending statement

Article – BusinessDesk

March 8 (BusinessDesk) – Wellington Drive Technologies, the unprofitable manufacturer of energy efficient motors, has requested a trading halt pending an announcement.

Wellington Drive Technologies on trading halt pending announcement

By Paul McBeth

March 8 (BusinessDesk) – Wellington Drive Technologies, the unprofitable manufacturer of energy efficient motors, has requested a trading halt pending an announcement.

The irregularly traded shares fell 8.7 percent, or 1.5 cents, to 14 cents yesterday, valuing the Auckland-based company at $11.3 million. The stock has dropped 30 percent in the past 12 months.

The manufacturer has embarked on a turnaround plan which has seen it exit ventilation production in Singapore, now outsourced to Ziehl-Abegg, and cut its inventory, supply chain and operating costs. The company shrank its net loss to $6.3 million in calendar 2012 from $14.5 million a year earlier.

Last year Wellington Drive shareholders approved a $2.1 million placement to SuperLife Investments, a KiwiSaver and insurance provider owned by closely held Aventine Group. That amounts to about 16.6 percent of the enlarged group.

The company is seeking continued margin expansion and revenue growth this year, with revenue forecast at between $30 million and $33 million, and the gross margin target is a 4 percent-to-6 percent increase on 2012.

It is aiming for a full-year loss on an earnings before interest, tax, depreciation and amortisation basis of below $3 million, with positive ebitda for 2013.

(BusinessDesk)

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1 comment:

  1. John, 8. March 2013, 11:53

    WDT: Epic fail. Never in the history of NZ shares has a company promised so much for so long, and yet utterly failed to turn a profit. The promise that profitability ‘is just aropund the corner” is a refrain that has been repeated – to a greater or lesser degree – for each of the last 15 years by this company.
    The idea – the technology – was fabulus! Few NZ companies have made a bigger contribution to global energy efficiency – it should have been a shining example and a stellar performer – but it has repeatedly failed due to repeated and constant poor business planning and execution. The fact that it has existed so long is a sad reflection on NZ investors gullibilitry – it should have beenscrapped, sold, or de-listed years ago.
    Rick Boven was once a significant and well respected voice in promoting innovative business in NZ. But his involvement in – and ultimate responsability for – the total failure of WDT over the time of his association with it, speaks volumes, sadly, for his inability to walk the walk.
    As Chairman of the Board, Tony Nowell has been a calm and statesmanlike protector of shareholders from the real truth behind his company – it was hearing him repeat bare-faced untruths at the AGO 3 years back that made me ditch 99% of my long-held stake in the company. The fact is that this pup has been barking like a dog for nearly two decades, and will never turn a profit.
    The onmly ones to get anything out of WDT are the directors and the senior execuitives that have sucked big bucks out of WDT for years, whil the value of the company continued to bleed away….
    20 years is a good innings for a pooch that never could fetch a stick to save its life. Not a bad innings – but now is Time for it to be put down, once and for all.