Sealegs turns first-half profit as local market drives sales, Brazil opens new doors

Friday 24th October 2014

Sealegs Corp, which makes amphibious boats, turned a first-half profit after strong local demand underpinned a pick-up in sales, and as it taps new markets in South America.

The Auckland-based company reported a net profit of $32,300, or 0.05 cents per share, in the six months ended Sept. 30, turning around a loss of $604,000, or 0.51 cents, a year earlier, it said in a statement. Revenue rose 15 percent to $9.67 million, with 59 boats invoiced in the period compared to 54 a year earlier.

"This strong sales performance in the first half of the year is underpinned by an exceptionally strong NZ market through the winter," chairman Eric Series said. "Sealegs has also been able to penetrate new markets, with the first-ever Sealegs sales into Brazil."

In August, the boat-maker entered into a joint venture to build its amphibious craft to supply the wider South American market, licensing a Brazilian manufacturer to build vessels using amphibious technology kits supplied out of New Zealand.

Series said the company is "firmly of the opinion that the opportunity exists to provide Sealegs amphibious technology on a license basis to a significant number of third-party boatbuilders around the world."

Sealegs posted a positive operating cashflow in the period, generating an inflow of $438,300 in the six-month period compared to an outflow of $1.21 million a year earlier. That left the firm with cash and equivalents of $462,300 at the Sept. 30 balance date, including $300,000 raised from a share issue, and $1.19 million spent on development costs.

The board didn't declare an interim dividend.

The shares fell 8.3 percent, or 1 cent, to 11 cents, and have dropped 22 percent this year.

BusinessDesk.co.nz

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