Friday 26th February 2016
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Wellington Drive Technologies, the maker of energy efficient motors, has reported a smaller loss with increased sales and better inventory and cost control.
The net loss was $2.3 million for calendar 2015, compared to a loss of $4.4 million in 2014, with the exchange rate working in its favour, the Auckland-based company said in a statement. The loss on an earnings before interest, tax, depreciation and amortisation basis was $1.4 million against $4 million the prior year and the company had earlier indicated it was “possible” it could be close to ebitda breakeven for the 2015 year.
In line with a market update it provided earlier in the month, the company delivered a 38 percent rise in revenue to $24.6 million, mainly due to a 48 percent rebound in Latin American sales in US dollar terms.
It also won new customers in Asia-Pacific, which generated US dollar revenue growth of 18 percent to offset a 35 percent drop in Europe on weak demand in the stagnant economy. Global motor volumes increased by 23 percent to over 1 million units shipped during the year.
Chief financial officer Howard Milliner said it was pleasing to deliver continual improvement in its financial results, particularly improved operating costs, inventory performance and positive operating cash flows.
“We look forward to improving even further in 2016,” he said.
Operating expenses dropped 8 percent to $8.4 million while inventory at $3.7 million was $1 million under the previous year.
Positive operating cash flow of $800,000 helped to produce a $2.9 million cash at balance date.
The company has begun shipping its ECR2 motors to a large US cooler manufacturer, which is using the product in a broad range of food and beverage display cases, the target market for the new motor.
Its shares last traded at 7.6 cents, and have gained 72 percent the past year.
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