Wednesday 28th April 2021
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Wellington Drive Technologies is today announcing its unaudited trading results for the three months ending 31 March 2021 (Q1 2021) and updating its guidance for Q2 2021 and for the full year. Q1 EBIT of NZ$0.5m was in line with previous guidance and confirms the company’s return to profitability after the difficult, COVID-affected trading in 2020. Over the last quarter, Wellington has experienced strong forward orders for both its Wellington Connect IoT products and its ECR 2 motor range.
2021 updated guidance
Customer demand continues to be strong and Wellington’s current US dollar revenue forecast for 2021 is in the range US$41m to US$46m compared to previous guidance of US$40m – US$43m. The top end of that range would be approximately 90% ahead of 2020 and 10% above 2019 – and would be a new US dollar revenue record for Wellington. This forecast would see Connect IoT and ECR 2 motor revenue 20% above the level achieved in 2019, with this offset by a decline in revenue from our legacy motor series.
Q2 2021 revenue is forecast to be approximately US$12-14m compared to US$2.9m in Q2 2020 which was a quarter that was significantly impacted by Covid19.
With 2021 US dollar revenue in this range, the Company is targeting EBITDA earnings in the range of $2.5m to $3m which would deliver a pre-tax profit of around breakeven. This EBITDA guidance range is unchanged as the Company is seeing cost and supply chain pressures. Forecasts have been prepared at a 0.70 US$/NZ$ exchange rate and are sensitive to the US$/NZ$ exchange rate (i.e. each 1c movement has an estimated $0.2m impact on EBITDA). The current global component and commodity shortage situation could impact the Company’s ongoing ability to deliver its revenue forecast. The Company is working closely with its supply base to mitigate this risk, with actions that include lengthening its supply forecast window and seeking alternate sources for some commodities.
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