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IkeGPS loss grows, but predicts growth

NZ Newswire logoNZ Newswire 29/05/2017 Sophie Boot

IkeGPS, the laser measurement toolmaker, has widened its annual loss after a "difficult first half", but expects growth and cash breakeven in 2018.

The Wellington-based company posted a $10.7 million loss for the year ended March 31, from $8.8m a year earlier, with revenue dropping 36 per cent to $5.8m.

The drop reflected a weaker first half caused by "several one-off headwinds", which was followed by a return to growth in the second half, the company said.

Ike projected a return to growth in 2018, forecasting more than 40 per cent sales growth of its Ike4 units, more than 50 per cent growth for new sales of its Spike units, and cash breakeven in the year. The company sold about 2100 Spike units in 2017, while figures for the Ike4 units weren't immediately available.

Ike said it couldn't make specific forecasts for its Smart Measure Pro sales due to lack of visibility into Stanley Black & Decker, which delayed a large order of the product earlier this year.

After three years of greater than 100 per cent year-on-year growth, the 2017 year was challenging, chief executive Glenn Milnes says.

"Positively, we feel that we have addressed the one-off headwinds encountered in FY2017 and now have momentum back across our products and markets to underpin a return to strong growth."

Ike had $2.7m in cash and equivalents at the end of 2017, down from $5.3m a year earlier.

The shares were unchanged at 38 cents and have dipped 2.6 per cent this year.

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