Wellington Drive four month revenue up 53%

Monday 13th June 2011 2 Comments

Energy saving motor company Wellington Drive Technologies says its revenue for the four months to the end of April is 53% higher than it was a year earlier at $11.9 million.

The improvement was driven by US dollar revenue growth of 64%, and sales volumes growing 59% to reach a total of 420,000 units for the period.

Earnings before interest, tax, depreciation and amortisation (ebitda) for the four months was a loss of $2.3 million.

Wellington Drive's electricity saving refrigeration motors increased sales by 78% during the period, including the company's first ever sales month of more than 100,000 ECR motors.

Since the end of April, trading had continued at a strong level, with the 500,000th motor sold for the year during the month of May, Wellington Drive said.

For the 2010 year, Wellington Drive's sales rose 25% from the year before to reach $28 illionm, with sales volumes up 31% to 887,000 units. A net loss of $14.8 million was reported, a $1.9 million improvement from the year before but higher than had been expected. The result was due in particular to a weaker than expected gross margin performance.

The company also reported today that its board had agreed to a request from chief executive Ross Green that he move out of the role upon the appointment of a replacement, and into a more focused support and advisory role.

A consolidation of ordinary shares is being carried out, with every 20 existing shares held in Wellington Drive on June 30 being consolidated into one share. The number of Shares on issue in Wellington Drive will be reduced from 1.35m billion to 67.37m.

NZPA

Comments from our readers

On 13 June 2011 at 4:09 pm Robert said:

Will this company ever make a profit? A 53% improvement in revenue isn't much good if the Ebitda is still runnning at an annualised loss of $7million per year. Is there any light at the end of this particular tunnel for the long suffering shareholders?

On 1 July 2011 at 9:45 am stephan said:

the shareholders here are in a pickle. this company indicates sales are up by 53%. here is a known fact, ask about the rejection rate from the customers in the USA and the pull back on orders from OEMs.