Thursday 28th January 2021
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Wellington Drive Technologies Limited (Wellington) revenue for the fourth quarter of 2020 (3 months ended 31 December 2020) was around $10.4m, consistent with guidance provided on 28 October 2020. This is a significant and trending improvement over the rates of decline in second and third quarters. The Company believes this trend improvement may indicate returning confidence in the food and beverage market.
The year’s revenue was $36.9m, well down on $61.7m in 2019 due to the previously disclosed impacts of COVID-19 on customer demand.
Quarterly revenue performance:
Q1 – 31 March Q2 – 30 June Q3 – 30 Sept Q4 – 31 Dec
2020 Year $15.4m $5.1m $6.0m $10.4m
2019 Year $15.8m $17.5m $12.6m $15.8m
Year-on-year change -2.5% -70.9% -47.6% -34.2%
Cash at 31 December 2020 was $4.6m with $1.9m of unused debt facilities, which is sufficient on current expectations to meet 2021 operating needs.
The trading result for the year is currently being finalised. Audited financial statements are expected to be released on 24 February 2021.
Wellington’s CEO, Greg Allen commented “We are pleased with the way 2020 finished; with a healthy cash balance, reduced debt usage and signs that revenue is returning. We are cautiously optimistic with how Q1 2021 demand is shaping up, but retain a degree of caution around the outlook for the balance of the year. We will find the right middle ground in a planning sense to ensure we are ready to deliver while not overextending on inventory investment. It would seem that confidence around global vaccination programs and a need to restart cooler installations after nine months of restrictions is driving the current strength in demand. Cash management remains our priority, with customer demand delivery a close second”.
CEO transition update
The board has progressed to the next stage of the CEO election process. A shortlist of suitable candidates has been selected and initial board-level interviews will commence in February. The board is pleased with the level of candidates seen so far. With the current CEO stepping down at the end of March, the board believes it is unlikely a new CEO will be in place by that date. Appropriate internal interim management may be appointed to bridge any major gap in timing.
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