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Sales lift for Wellington Drive

NZN 26/10/2016 Paul McBeth

Wellington Drive Technologies, which makes energy efficient motors for commercial refrigerators, lifted third-quarter revenue 25 per cent and is still targeting positive earnings for the year.

Revenue rose to $6.3 million in the three months ended September 30 from $5.1m a year earlier, the Auckland-based company said.

Adjusted earnings before interest, tax, depreciation and amortisation was a loss of $427,000 in the quarter, smaller than the $607,000 ebitda loss reported a year earlier, and Wellington Drive maintained guidance that it would generate a small annual profit.

"We expect a strong Q4, closer to revenue levels earlier in the year, and are targeting achievement of a modest ebitda profit for the full year," chief executive Greg Allen said.

Wellington Drive has focused on Latin America to make the company profitable after years of underperformance, convincing cornerstone shareholder SuperLive, the NZX-owned fund manager, to back a series of capital raisings.

The company said it has started seeing the benefits of cutting costs in its supply chain with increased volumes, though warned future reductions will have less measurable impact.

Mr Allen said the company will update 2017 guidance when demand for the new season is clearer, and that Wellington Drive is focused on "putting in place additional supply chain capacity and customer field support to meet its 2017 requirements".

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