Friday 28th November 2003
|Text too small?|
First listed at 81c, the company's shares went as low as 20c after it posted a larger-than-expected half-year loss of $1.27 million.
This week they were back up to 75c following a splattering of relatively positive announcements.
The North-Shore-based company, which makes brushless motors for appliances such as fans and air conditioners, says it has received significant orders through its European partner, P Lemmens Air Movement Co.
While the details are scratchy, the deal at least confirms the company has finally materialised its proclaimed high overseas interest.
Wellington Drive appears to have a good product and revenue is growing, albeit slowly. Revenue was $950,000 for the year to June 30, up on the previous period's $530,000.
The company recently announced a licensing agreement with US-based electric motor manufacturer A O Smith, which is expected to bring additional production capacity behind the Wellington division's standard lines.
Earlier this year the company raised $3.69 million from a one-for-eight renounceable rights issue. The issue closed oversubscribed.
Wellington managing director Ross Green said it was difficult to provide projections of future profitability, which underlined the speculative nature of the stock. Wellington Drive reported an unaudited bottom-line loss of $2.3 million for the June year, an improvement on the 2002 $3 million loss.
However, the directors are confident the company will move into profit for the 2005 financial year.
No comments yet
NZ dollar becalmed on US-China trade/politics nexus
Govt to pull Infrastructure Commission into Auckland port imbroglio
Wind to displace diesel for Stewart Island power
Eroad's five year target: doubling unit sales
Blinky boxes and gobbledegook: tips for choosing a cyber-security vendor
Govt support for NZME/Stuff merger difficult, not impossible, says Jarden
NZ dollar stalled; US-China trade signals remain mixed
Ryman warns NZ, Australia to take population ageing more seriously
MARKET CLOSE: NZ shares fall as US-China trade concerns weigh on markets; Ryman slips
NZ dollar stalled; US-China trade deal may be postponed