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Sealegs margin boost counters soft sales

NZ Newswire logoNZ Newswire 29/11/2016 Edwin Mitson

Sealegs, the amphibious vehicle maker, says increased margins have helped counter soft sales in Australia and Europe.

The Auckland-based company said it invoiced for 44 boats in the six months to the end of September, compared to 54 in the comparable period a year ago.

This was due to consistent growth in the United Kingdom and New Zealand, although performance across the Tasman and in continental Europe was "softer than anticipated."

Demand from Asia is described as strong, led by Malaysia and centred around first response and flood rescue craft.

The fall in the number of boats produced is reflected in revenue, which fell to $8.36 million from $9.3m in the previous year, a fall of 10.1 per cent.

Improvements in efficiency which saw all expenses squeezed lower than the previous year meant earnings before interest, taxation depreciation and amortisation rise 17 per cent to $650,050 from $554,965.

Net profit after tax rose slightly to $374,881 from $368,490, a rise of 1.7 per cent. Management have told investors they view EBITDA as the primary performance metric of the business.

Shares in Sealegs rose 5.2 per cent or half a cent to 10 cents. They've fallen 13.6 per cent so far this year.

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