Sharechat Logo

Wellington Drive Technologies on trading halt pending announcement

Friday 8th March 2013

Text too small?

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.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Wellington Drive narrows 1H loss as turnaround plan trims costs by 30 percent
Wellington Drive raises $4M in placement supported by SuperLife
Wellington Drive narrows FY loss after trimming costs, fattening margin
Wellington Drive shareholders approve $2.1M placement, guidance affirmed
Wellington Drive 3Q sales slide 23 percent, sees tough trading ahead
Wellington Drive adds cool fan technology to its refrigeration line up
Wellington Drive signs US licensing agreement worth up to US$400k/year
Wellington Drive says profit in 2013 'challenging', seeks funding partner
Wellington Drive Technologies embarks on cost-cutting drive
Wellington Drive names Greg Allen as new CEO, based in North America