Future Mobility Solutions - FMS [was Sealegs - SLG]

[Nigel]

My personal opinion is that the management of this company has improved greatly over the past few years. Some would question the abilities/intentions of management a long time ago, but I think that has all improved. I like the product, and I like the 'brand' they are developing. However this is a thinly traded stock, and in the absence of a strong report, I fear it will drift back to the 11-15c range. A big shareholder came in last year (I think) at 19c, when the stock had been trading at around 9-11c from memory, so they obviously saw something that made them want to invest at such a premium. I had hoped we'd have seen that 'something' by now - the maiden profit was well recieved, but now we've backpedalled and are making a loss again. Will be interesting to see if they can realise a profit by the end of the financial year. If not, I think the sp will be punished for not delivering to expectations.

[Scottman]

I lost patience with them ages ago. Moved on to better run companies.

[Leftfield]

I lost patience with them ages ago. Moved on to better run companies.

Totally agree. Best thing I did was to sell my SLG.

[Valuegrowth]

Could they have bright future once world economy improve? With their patented Amphibious Technology will they able dominate in this area globally in the future?

[Scottman]

My view is there are far better companies and products to invest in unless you have got lots of spare cash and you want to take a punt.

[Bobcat.]

I picked some up last year at 15.5c on the back of their exposure at San Fancisco (America's cup) but as soon as they published their financial report, I sold out (at 18.1c, soon after it had peaked at 20c). The time to buy back into this stock was during the subsequent sell-off that dropped the price to 13c - not now IMO.

There is a March European convention/expo they earlier announced attending that could provide a boost but they need to demonstrate improved sales revenue before I will invest again in SLG (i.e. a decent return on their several years of overseas trips marketing their product).

[Valuegrowth]

Thank you Scottman (http://www.sharetrader.co.nz/member.php?11195-Scottman) & Bobcat. Kind regards.

[Ekrub]

I guess this good news.....well done Sealegs: http://www.radionz.co.nz/news/business/234282/$355,000-research-grant-for-power-boat-maker

[Valuegrowth]

It is time to do some home work on this company.

[Blendy]

Sealegs are featured in the Royal Tour next month http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=11212752

[westcoaster]

This announcement should help the sp up nicely. https://www.zawya.com/story/ASIS_Boats_to_Launch_the_Worlds_First_Inboard_Jet_ Amphibious_Leisure_Boat-ZAWYA20140306070638/

[westcoaster]

https://twitter.com/GovGeneralNZ/status/454467401627627520/photo/1 this link provides nice publicity

[youngatheart]

Expectation that the FYR will be released tomorrow morning as last years release was on 21.05.12. With this quote from the last paragraph "We expect to see a significant contribution in the year ending 31 March 2014"
However I see there is a 80,000 SELL parcel that has appeared in the last day. A harbinger of bad news from someone in the know perhaps? Thoughts?

[NT001]

This seems to look vaguely promising, especially after the halfyearly report, for all its optimism, hardly set the SP on fire. I guess something needed to be done. CEO goes and one of the company's founders comes back as his interim replacement, and Wayne Mapp looks like a handy board addition.

Director Appointments
2:33pm, 11 Nov 2014

Sealegs Corporation Limited (NZX:SLG) has announced today a number of management and board changes. The board has appointed Wayne Mapp and David McKee Wright as new board members.

Mr Mapp was formerly a Minister of Defence and a Minister of Science, Research and Technology in New Zealand and currently serves as a member of the New Zealand Law Commission. He is a graduate of Cambridge University and joins Sealegs as an independent non-executive director.

Mr Mapp is bringing his unparalleled expertise and experience in the government and military sectors to Sealegs, which is currently expanding its activities in those areas markedly.

Mr McKee Wright is one of the founders of Sealegs and his deep knowledge of the company should make a significant contribution to the board. Mr McKee Wright is also appointed as Interim CEO.

[tony64peter]

When a senior board member has a European outlet that makes no sales and demands preferential pricing, that's a conflict of interest in my books.

[silu]

Just for giggles. Rhys Darby's most grown-up purchase is a Sealegs boat
7. What was your first big, grown-up purchase?

RD: It would normally be a car, I suppose, but that’s a bit boring.

What about my amphibious boat? It’s called a Sealegs: a motorboat with wheels that you drive into the sea, and then you push a button and the wheels come up. It’s a bit of a James Bond device.

source: http://www.avclub.com/article/comedian-and-actor-rhys-darby-answers-our-11-quest-212289?utm_source=Facebook&utm_medium=SocialMarketing&utm_campaign=LinkPreview:1:Default

[westcoaster]

What a fab collaboration, http://www.marinebusiness.com.au/news/new-stabicraft-supercab-gets-its-sealegs

[Valuegrowth]

Any new development in this company? I heard that it is going to expand its manufacturing network, with plans to work with hull manufacturers in Europe and the United States. Can we expect some sort of turnaround in this company?

[Snow Leopard]

https://nzx.com/files/attachments/231921.pdf
...Malaysian island of Sabah...


http://press.anu.edu.au/apem/borneo/html/figure1-1.jpg

Best Wishes
Paper Tiger

[TideMan]

Just replace "island" with "state" and everything's sweet.

[Valuegrowth]

Can we expect some development from SLG?

http://www.publicnow.com/view/68094CB1809F8AE99703531AED0CE05FE6A96E13’t see any turnaround situatatiom

Sealegs Secure International Partnership with USA

[RGR367]

Can we expect some development from SLG?

http://www.publicnow.com/view/68094CB1809F8AE99703531AED0CE05FE6A96E13’t see any turnaround situatatiom

Sealegs Secure International Partnership with USA

And just this afternoon on my inbox is this development about them "receiving an order to supply an amphibious tender to super yacht Vibrant Curiosity". This yacht is the latest super yacth to purchase an amphibious tender in what is becoming a valuable emerging market for Sealegs. And some more blah, blah, blah.
Maybe they're into something new again :)

[Valuegrowth]

And just this afternoon on my inbox is this development about them "receiving an order to supply an amphibious tender to super yacht Vibrant Curiosity". This yacht is the latest super yacth to purchase an amphibious tender in what is becoming a valuable emerging market for Sealegs. And some more blah, blah, blah.
Maybe they're into something new again :)

Thank you RGR for your response.

[Blendy]

I'm off to the Sealegs AGM this afternoon. I'm predicting the mood will be good on the back of the announcement today of their latest partnership (although I'm not sure how much revenue this will bring in):

Today, at the 2016 Monaco Yacht Show, J Craft, the luxury Swedish boat
builder announced it was to manufacture its first amphibious vessel thanks to
a newly forged strategic partnership with New Zealand based Sealegs, the
world's leading amphibious technology experts.

The striking boat will build upon the formidable reputation J Craft has
garnered thanks to its flagship model, the Torpedo. The vessel will feature
retractable, hidden Sealegs technology, allowing the craft to glide from the
water to the land effortlessly, whether up a beach or a slipway.

Eric Series, Chairman of Sealegs said: "We are excited to build the most
luxurious amphibious craft ever made thanks to this partnership. The Sealegs
100 system the J Craft will use is the most powerful system we have ever
built and will make it more versatile than ever, as well as turn heads."

Radenko Milakovic, Chairman and Owner of J Craft said: "J Craft stands for
Passion, for Grace and for Elegance. Beauty with no limits - now literally!
Thanks to Sealegs and their cutting edge technology only the sky is the
limit!"

[Rep]

You might enquire how the current court action is going?

[Blendy]

You might enquire how the current court action is going?

Will do. No doubt it will come up.

[Blendy]

Cleverly timed AGM with the Boat Show. On my walk here I heard multiple groups of people talking about the Sealegs boat they saw.

[Blendy]

All resolutions passed. Request from a shareholder to hear the directors speak to the meeting before we vote, as it wasn't offered automatically.

Savings being made on supplier costs, and this will continue.

Record sales in nz. Distribution problems in Australia, so disappointing sales year. Stabi craft to be released soon and expect good sales.

Sales to superyacht owners key target.
4 boats at the Monaco boat show right now.

Sales to 5 Malaysian govt depts, so have now moved past their govt procurement so can supply to any depts there.

The fancy j craft boat looks very cool :)

[Blendy]

Court case: it's on the 28th. Very hopeful of a positive outcome, and want to send a message to the market that Sealegs won't tolerate copying.

[Blendy]

Sealegs attorney is present to answer questions about the case, and explains what copyright infringement is.

[Blendy]

Trading guidance: everything's on track to be better than last year.
Asian market is growing.
Brazen boat released today at the boat show.

[Blendy]

Question about 'amphibious systems' company mentioned in an announcement earlier in the year. It's to do with improved manufacturing. TBA

[Blendy]

Query about the sound of the boat.
Extensive suggestion by a shareholder that a boat should be sold to Malcolm Turnballs wife as a PR campaign and a gift to give him as "she's scared of him being attacked by sharks." To help Australian sales.

[Blendy]

Query: long term strategy for build capacity.
Working better now that deals with other boat builders are building boats that aren't requiring resource here.

[Blendy]

Edison price valuation is 18c

Tea time!

[Blendy]

Very good catering - meaty rolls and mini pies, sausage rolls, fruit platter. Much higher quantity of food than people in attendance.

[Valuegrowth]

This company will get attention from investors only if they see any turnaround or growth prospects. Still we don’t see much progress. Lower NZD could give some support for their profit margin. Hopefully we should see lower NZD from 2017 onward.

[Lola]

Very good catering - meaty rolls and mini pies, sausage rolls, fruit platter. Much higher quantity of food than people in attendance.

Remind me to get you an invite to my funeral. We will supply dog bags for some people to save on cleaning up bills.

[Snow Leopard]

Couple of announcements today landlubbers:

1/ The court says that the naughty nauticals can not copy their patented design for the moment.
[https://nzx.com/companies/SLG/announcements/294618]

2/ The are going on a spending spree buying into salted RIB producers in France and South Africa and they are going to change their name to Future Mobility Solutions Limited so we all think it is making an amphibious version of those little buggies that old people terrorize pedestrians with.
[https://nzx.com/companies/SLG/announcements/294643]

Personally I would not touch them with a boat hook

Best Wishes
Paper Tiger

[Lola]

Couple of announcements today landlubbers:

1/ The court says that the naughty nauticals can not copy their patented design for the moment.
[https://nzx.com/companies/SLG/announcements/294618]

2/ The are going on a spending spree buying into salted RIB producers in France and South Africa and they are going to change their name to Future Mobility Solutions Limited so we all think it is making an amphibious version of those little buggies that old people terrorize pedestrians with.
[https://nzx.com/companies/SLG/announcements/294643]

Personally I would not touch them with a boat hook

Best Wishes
Paper Tiger

Thanks
Sounds like a buy recommendation

[Valuegrowth]

Any new development? How did it change from SLG to FMS. Thanks.

[Puriri Pete]

Any new development? How did it change from SLG to FMS. Thanks.

Company changed its' name some time ago and NZX allocated a new ticker. Easy to research on NZX website under company announcements.

[Valuegrowth]

Company changed its' name some time ago and NZX allocated a new ticker. Easy to research on NZX website under company announcements.

Thank you PP. I didn’t follow this for the last 12 months although I have some shares of it. I don’t see any strong turnaround in their business yet.

[Lola]

Thank you PP. I didn’t follow this for the last 12 months although I have some shares of it. I don’t see any strong turnaround in their business yet.
Article by Sophie Boot in NBR talks about FMS still looking to give NZX the Boot and list elsewhere offshore.
Probably overdue as NZX have waved a big stick at this little company once too often but more importantly FMS are looking more like an outfit with growing global reach.
NZ investors just not interested unfortunately.

[Puriri Pete]

Article by Sophie Boot in NBR talks about FMS still looking to give NZX the Boot and list elsewhere offshore.
Probably overdue as NZX have waved a big stick at this little company once too often but more importantly FMS are looking more like an outfit with growing global reach.
NZ investors just not interested unfortunately.



It will be too bad for NZ-based investors if this gets to happen. The reality is this has been a dog of an investment for those who invested from the start and who supported the founders through various capital raisings.

After years of being run as a lifestyle business there are finally some positive developments underway which, as tangible results appear, will translate into share price appreciation as it does for any growing business. For some Johnny-come-lately major shareholder to bleat about NZX compliance requirements and move to de-list from the NZX suggests an arrogant disdain for ordinary shareholder rights. If he finds some mild media and regulatory scrutiny too hot to handle he cannot be the right person to chair a public company.

Shareholders should fight this move and ensure independent directors do not forget their responsibilities.

[Lola]

It will be too bad for NZ-based investors if this gets to happen. The reality is this has been a dog of an investment for those who invested from the start and who supported the founders through various capital raisings.

After years of being run as a lifestyle business there are finally some positive developments underway which, as tangible results appear, will translate into share price appreciation as it does for any growing business. For some Johnny-come-lately major shareholder to bleat about NZX compliance requirements and move to de-list from the NZX suggests an arrogant disdain for ordinary shareholder rights. If he finds some mild media and regulatory scrutiny too hot to handle he cannot be the right person to chair a public company.

Shareholders should fight this move and ensure independent directors do not forget their responsibilities.

If/when a re listing occurs shareholders will start reaping the benefits of the expected re rating of the company's valuation by investors knowing what they have their hands on.

Only the NZX will suffer as it looses yet another fee paying client.

P Pete you miss the point.

[Puriri Pete]

If/when a re listing occurs shareholders will start reaping the benefits of the expected re rating of the company's valuation by investors knowing what they have their hands on.

Only the NZX will suffer as it looses yet another fee paying client.

P Pete you miss the point.

Where's the evidence that re-listing to Europe or Africa benefits NZ domiciled shareholders that makes you so convinced of that?

To take your claim to its logical conclusion there should be absolutely no internationally focussed businesses listed on the NZX because local investors are incapable of knowing what they have their hands on and rating them appropriately. I find that hard to accept.

The problem is that Sealegs has been an inept performer as a business both operationally and from a governance point of view. Their investor relationship management has been appalling. I have been to their AGMs when only two directors are present, and twice in my experience when the present Chairman has been absent and has not provided either a video hook up or recorded presentation. Directors and managers chop and change regularly, key staff retention has been an issue. Little wonder in my mind there is investor apathy toward the company.

Running away to Europe or Africa is not a solution. If overseas investors are so much sharper they should come here now buy up the available shares while they cheap.

[Meextr]

Very confusing I see them listed as FMS at 16c per share and as Sealegs at 13c per share I am quite new to this so please excuse my ignorance if I missed something. Was looking at Sealegs as a possible buy, I know they are not Americas Cup type racers but the Americas cup win might help them.

[janner]

Very confusing I see them listed as FMS at 16c per share and as Sealegs at 13c per share I am quite new to this so please excuse my ignorance if I missed something. Was looking at Sealegs as a possible buy, I know they are not Americas Cup type racers but the Americas cup win might help them.

ODT.
Wednesday, 21 December 2016

Sealegs buys into overseas firms

By Simon Hartley

0 0

Business

New Zealand amphibious boatmaker Sealegs is plunging into the European and South African markets, taking controlling interests in two companies in cash and script deals worth $5.3 million.

If the deal goes ahead, boat production will rise to more than 400 per year, with operations based in Auckland, Gemini Marine in Cape Town and Sillinger in Paris.

Unable to find Sealegs on my charts/filters etc. with a price. Only with zero's

Disc. Not a holder.

[Lola]

Very confusing I see them listed as FMS at 16c per share and as Sealegs at 13c per share I am quite new to this so please excuse my ignorance if I missed something. Was looking at Sealegs as a possible buy, I know they are not Americas Cup type racers but the Americas cup win might help them.

Americas Cup won't figure in the new Plans of FMS.
It's about licensing SEALEGS IP to the two companies that are now in the Stable.

Stay cynical if you want but be prepared to be surprised

[Meextr]

ODT.
Wednesday, 21 December 2016

Sealegs buys into overseas firms

By Simon Hartley

0 0

Business

New Zealand amphibious boatmaker Sealegs is plunging into the European and South African markets, taking controlling interests in two companies in cash and script deals worth $5.3 million.

If the deal goes ahead, boat production will rise to more than 400 per year, with operations based in Auckland, Gemini Marine in Cape Town and Sillinger in Paris.

Unable to find Sealegs on my charts/filters etc. with a price. Only with zero's

Disc. Not a holder.
I see what you mean by the zeros it confused me that it said market cap' $17million
Thanks

[Lola]

Where's the evidence that re-listing to Europe or Africa benefits NZ domiciled shareholders that makes you so convinced of that?

To take your claim to its logical conclusion there should be absolutely no internationally focussed businesses listed on the NZX because local investors are incapable of knowing what they have their hands on and rating them appropriately. I find that hard to accept.

The problem is that Sealegs has been an inept performer as a business both operationally and from a governance point of view. Their investor relationship management has been appalling. I have been to their AGMs when only two directors are present, and twice in my experience when the present Chairman has been absent and has not provided either a video hook up or recorded presentation. Directors and managers chop and change regularly, key staff retention has been an issue. Little wonder in my mind there is investor apathy toward the company.

Running away to Europe or Africa is not a solution. If overseas investors are so much sharper they should come here now buy up the available shares while they cheap.

Mooring Systems (Cavotec)
Glaxo

Probably won't convince you though

[Puriri Pete]

Business strategy appears to be gaining better visibility with recent acquisitions and particularly today's announcement of the conditional agreement to buy Willard Marine Inc, a 60 year old US based business operating in the military, first responder and commercial sectors. Perhaps this is the deal mysteriously touted a year ago?

https://www.nzx.com/companies/FMS/announcements/307843

The tone of company announcements and communications since the appointment of Mark Broadley as CEO is clear and unambiguous. I take this as a positive signal the business now has clear direction and purpose.

However I'm not impressed by their proposal to delist from NZX and move the company to the lightly-regulated AIM market in London. It will be interesting to see how the matter is handled at the AGM on Friday when they have a chance to convince shareholders to agree.

[Puriri Pete]

It's SNAFU at FMS - for the second time in 5 years uinder the current Chairman the AGM has had to be adjourned because NZX listing rules for giving notice to shareholders have not been followed. The opaque AIM market will seem even more appealing now. Such incompetence is unbelievable - time to walk the plank M. Series.

[Jay]

Perhaps they were focusing on the Boat Show - AGM minor details :)

In all seriousness - I agree not a good look and not a holder either

[Timesurfer]

If FMS were to join London's AIM Market how does that work for current shareholders?

[Lola]

if fms were to join london's aim market how does that work for current shareholders?
they wont so dont stress

[Timesurfer]

I wasn't stressing .. just haven't lived through a transition before.
Picked up a few more today - sorry for dropping the SP for everyone else.

[Timesurfer]

It sounds like they are going to start working on selling their story to shareholders.

https://www.youtube.com/watch?v=248VCKR9aKc&list=PLL2YFYxRvLGiMbJ0CiLcVfHkgxaktsCt6&index=14

Mostly liking what I see with this company. Revenue base up 100% over the past 24 months, largely driven by acquisitions.
Big goals and they appear to have identified a market gap.
Not sure about the new and dual listings they are investigating given the lack of interest on the NZSX.

Disc small holding

[Lola]

It sounds like they are going to start working on selling their story to shareholders.

https://www.youtube.com/watch?v=248VCKR9aKc&list=PLL2YFYxRvLGiMbJ0CiLcVfHkgxaktsCt6&index=14

Mostly liking what I see with this company. Revenue base up 100% over the past 24 months, largely driven by acquisitions.
Big goals and they appear to have identified a market gap.
Not sure about the new and dual listings they are investigating given the lack of interest on the NZSX.

Disc small holding

Yes you are right on about revenue growth. And it seems its continuing as someone at the Boat show referred to a document that said that FMS will / are looking at achieving a NZD $50 million plus revenue number in the year to 31/3/19. Now thats another near 100% on 2018. Good on them.!

Seems this little NZ manufacturer is now making progess on the world stage, not only in pleasure craft but in the government or semi government space and in tourisim too..... it is still an NZ listed company but for how long people ask. There' s an old saying in investment : " Value is where you find it". So who cares where its listed? One day for sure this one wont be, anywhere.

[Timesurfer]

I know those who have been involved for years will be thinking it is a dead mule, but I think there is a murmer of heartbeat there that might get us around the track at least once. Not sure if Trump is making it harder for them, or if he is about to be a boom for the military market.
The recent share offer seems to have generated a bit of interest so I am not getting any more cheap shares at the moment.

[Timesurfer]

Might be interesting.


Details of transactions and events giving rise to substantial holding

An off-markettransfer.from Citibank Nominees (New Zealand) Limited (as custodian for Capital Key Holdings
Limited) to Newland Inc. Limited

[Lola]

I know those who have been involved for years will be thinking it is a dead mule, but I think there is a murmer of heartbeat there that might get us around the track at least once. Not sure if Trump is making it harder for them, or if he is about to be a boom for the military market.
The recent share offer seems to have generated a bit of interest so I am not getting any more cheap shares at the moment.

Well they came with the interim today, exactly as they did last year viz 29/11.

Revenues for the six months hitting $ 27 million plus. So looks like 50 million plus for the year to 31/3. Costs seem to be well are under control.
Ignore the forex stuff, thats just accounting. This company has got it together. Market cap a measly $23 million. Definite buyout prospect IMHO.

[Subway]

Couple of announcements today landlubbers:

1/ The court says that the naughty nauticals can not copy their patented design for the moment.
[https://nzx.com/companies/SLG/announcements/294618]

2/ The are going on a spending spree buying into salted RIB producers in France and South Africa and they are going to change their name to Future Mobility Solutions Limited so we all think it is making an amphibious version of those little buggies that old people terrorize pedestrians with.
[https://nzx.com/companies/SLG/announcements/294643]

Personally I would not touch them with a boat hook

Best Wishes
Paper Tiger

Stryda Marine one of the infringing parties named in the lawsuit has merely shifted production to Australia and telling customers to privately import finished boats, saw one in the flesh on the weekend, i'm sure sealegs will be back in court on this one

[Timesurfer]

Stryda Marine one of the infringing parties named in the lawsuit has merely shifted production to Australia and telling customers to privately import finished boats, saw one in the flesh on the weekend, i'm sure sealegs will be back in court on this one

I guess if there was a positive it would be that it shows demand :mellow:

[Subway]

I guess if there was a positive it would be that it shows demand :mellow:

The demand is definitely there, but given sealegs value their kit at $75k (well over what its worth) they will burn more money in legal fees when they should just get on with meeting demand

[Timesurfer]

Next - Sea Legs around the world series!


Twenty seven Sealegs craft landed Friday on Langkawi Island, Malaysia, setting two records in the process.

The first for being the largest assembled fleet of government-owned Sealegs anywhere in the world by the Malaysian Civil Defense Force (APM), and Fire Department (BOMBA).

The second for the longest trip undertaken by a fleet of amphibious craft, which was registered in the Malaysian Book of Records.

Full article (https://mailchi.mp/sealegs.com/introducing-the-85m-alloy-cabin-3291737?e=b815bf7ff2)

[Aarrgghh]

Hi everyone
I've just bailed on FMS and since you have been so kind to share your information I thought I would respond with my analysis of FMS as well.

My Expectations:
I work in the marine industry and Sealegs has a good reputation, has started working with premium brands such as Stabicraft to put their gear on a wider range of boats. The idea of buying offshore companies and doing basically the same thing to open up a much larger market to NZ developed marine technology is a good one. I was hoping to see technology sharing between FMS brands - ie sealegs on Sillinger and Willard boats

Company's Plans:
BUILD a global brand targeted at government and commercial marine markets.
Invest heavilly in new technologies including foiling and self driving technology
Already planning a new share issue

What I found
Sillinger and Willard websites dont appear to have changed since take over. The news section on the Willard website hasn't been added to since 2016. Willlards facebook page hasn't been touched since 2017.
I can't find any Sillinger or Willard images showing amphibious technology - or really any signs of technology sharing between them
The foiling technology shown here http://www.futuremobilitysolutions.net/research.html is by a company called Seair. They have removed all mention of Sillinger from their website (although if you google search seair +sillinger it still pops up) which would lead me to assume there is some expensive mistake being made right now.

My assumptions and analysis
Sealegs itself is probably in a really good position. It has a good reputation and so long as the economy doesn't tank it will continue to do well
The costs involved with the R & D and other overheads are going to be high.
Sharing of information between three companies (one speaking french) has probably been a large hurdle.
The company appears to have been ineffective at promoting internal technologies across its brands, and I'm guessing that any efficiencies of scale are not going to be there. (eg 3 different websites for the different brands - should have one template running all three)

Anyway, that's my thinking. I hope I'm wrong and Sillinger and Willard have big government contracts about to be released. But I'm out.

[Lola]

Hi everyone
I've just bailed on FMS and since you have been so kind to share your information I thought I would respond with my analysis of FMS as well.

My Expectations:
I work in the marine industry and Sealegs has a good reputation, has started working with premium brands such as Stabicraft to put their gear on a wider range of boats. The idea of buying offshore companies and doing basically the same thing to open up a much larger market to NZ developed marine technology is a good one. I was hoping to see technology sharing between FMS brands - ie sealegs on Sillinger and Willard boats

Company's Plans:
BUILD a global brand targeted at government and commercial marine markets.
Invest heavilly in new technologies including foiling and self driving technology
Already planning a new share issue

What I found
Sillinger and Willard websites dont appear to have changed since take over. The news section on the Willard website hasn't been added to since 2016. Willlards facebook page hasn't been touched since 2017.
I can't find any Sillinger or Willard images showing amphibious technology - or really any signs of technology sharing between them
The foiling technology shown here http://www.futuremobilitysolutions.net/research.html is by a company called Seair. They have removed all mention of Sillinger from their website (although if you google search seair +sillinger it still pops up) which would lead me to assume there is some expensive mistake being made right now.

My assumptions and analysis
Sealegs itself is probably in a really good position. It has a good reputation and so long as the economy doesn't tank it will continue to do well
The costs involved with the R & D and other overheads are going to be high.
Sharing of information between three companies (one speaking french) has probably been a large hurdle.
The company appears to have been ineffective at promoting internal technologies across its brands, and I'm guessing that any efficiencies of scale are not going to be there. (eg 3 different websites for the different brands - should have one template running all three)

Anyway, that's my thinking. I hope I'm wrong and Sillinger and Willard have big government contracts about to be released. But I'm out.

Couldnt have put it better myself....result expected this week. They have two more days to do it in a timely manner but adherence to NZX regs havent been exactly top priority for neither the Chair or his sidekick. I still expect a buyout offer by management but maybe their sweetheart 11 % interest shareholder loans will bring something less savory in due course.

[Timesurfer]

Definely appears to be a management issue. I liked the strategy of buying into markets where they could combine technologies to create something bigger the sum of the parts but as you say it doesn't appear to be happening.
Still hoping someone will pick them off as an investment or a foot in the door to some military contracts. Lots of potential just not firing under the current arrangement.

[haewai]

I've just bought in. Seems undervalued to me. Market cap of $14m (@$0.08), revenue of $55m (perhaps, I just doubled the last 6 monthly revenue), low debt, some growth, EBITDA positive, positive cash flow, current price at a discount to the last rights offer. Looking forward to seeing what can be done about expenses, and advances in integration.

[Aarrgghh]

FY result out, couple of things which poke me in the face.

3 million good will written off in Willard Marine value. That's an asset which they paid ~10 million for. Given the comments about difficulty with government contracts, and the fact that Willard has a big 5 year contract finishing in 2021, I wonder if they will be writing off more value in the coming years.

"The change to the net present value of future cash flows used in accounting forthe Willard acquisition resulted in a gain of $354k being recognised in the incomestatement" Which to me reads the EBITDA would read negative except the company is exposed to some Forex risk

Zero mention of Lancer. Where did that million dollars go?

Admin costs at 11 mill up from 5.5 - I assume this includes the research costs, which I would imagine are much higher than 450k (development). To me this is the big one.

Cash on hand 2.2 million, Cash outflow from operating activities 2.5 million, cash to Willard 31 March 2020 US1.5 million. More high interest loans on the forecast, or another share issue?

[haewai]

Zero mention of Lancer. Where did that million dollars go?

Not zero mention. It's part of Sealegs International.


Admin costs at 11 mill up from 5.5 - I assume this includes the research costs, which I would imagine are much higher than 450k (development). To me this is the big one.

I thought admin costs should increase alongside other expenses due to the acquisitions. Revenue also doubled of course.



Cash on hand 2.2 million, Cash outflow from operating activities 2.5 million, cash to Willard 31 March 2020 US1.5 million. More high interest loans on the forecast, or another share issue?

Yes, a worry, but the difference could easily be made up through a single sale representing 5% of annual revenue. Still, its a risk.

[Timesurfer]

Expansion into India sounds promising.
On the face of it they seem to be doing things right.
One day they might have a goldmine - of course if it isn’t producing gold it is still going to be hard sell.

[haewai]

Trading halt. What can it be?
NBR suggests delisting, but the analysis is behind a paywall

[Timesurfer]

Trading halt. What can it be?
NBR suggests delisting, but the analysis is behind a paywall

Interesting indeed. They have long looked like a candidate for a takeover to me.
I just hope it is not a declaration of bankruptcy!
There has been a buildup on the buy side recently for the first time in forever.
Exciting times.

[Aarrgghh]

Who would take them over? Sorry if the answer is behind the NBR paywall. Management take over?

Could it be a share placement instead? Does that ever require a trading halt before announcement?

[haewai]

Cost saving proposal to move to unlisted. And loss of injunction against Orion.
Am ambivalent about this. Would be nice to see good news soon though

[Timesurfer]

Give me a boat and we call it quits?

[haewai]

Can anyone tell me what delisting means for shareholders? Has any other NZX firm shifted from the NZX to Unlisted?

I'm going to need the obviously basic information needed before voting at the AGM on the 27th Sept. Hope the directors can explain fully before then.

[Aarrgghh]

WTL shifted from NZX to USX I think. Martin aircraft too.

[Aarrgghh]

Market cap now 5.3 million. Share price 3c. Sealegs certainly is worth more than this, not sure of the other two.

If I had a USX registration I would consider it.

[Cobber]

Market cap now 5.3 million. Share price 3c. Sealegs certainly is worth more than this, not sure of the other two.

If I had a USX registration I would consider it.

Pretty bad management running this show. Lots of rookie mistakes, overpaying for those new entities.... and now delisting it to do whatever they feel like. No more accountability. I remember Snakk moving to the unlisted market - there is f-all liquidity.... so if you're trying to get out, good luck.

A takeover would be the best result for shareholders, but apart from patents, I'm not sure what other value they might have. Good luck.