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Wellington Drive Q1 sales climb 30pc

NZN 21/04/2017 Paul McBeth

Wellington Drive Technologies, which makes energy efficient motors and control systems for commercial refrigerators, lifted first-quarter sales 30 per cent as the company's focus on Latin America continues to underpin its long march to profitability.

The Auckland-based company generated earnings before interest, tax, depreciation and amortisation of $600,000 on revenue of almost $13 million in the three months ended March 30.

It expects strong sales growth to continue, chairman Tony Nowell told shareholders at Friday's annual meeting.

"Regardless, the $600k ebitda performance is materially better than Q1 2016, and we expect no change to our full year estimate; to achieve revenue growth in the 30 per cent to 40 per cent range and ebitda profit in the low millions of dollars," Mr Nowell said in speech notes published on the NZX.

"Our strategy to expand the motor product range, further develop the SCS Connect solution and develop new customers for those products in new markets, will continue at pace."

The company marked its first positive ebitda result in calendar 2016 as a five-year turnaround plan came to fruition, and it's now developing a range of 'Internet of Things' products for large food and retail brands as a second stream for the business.

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