going to need a few more sales before I look at it again - am still smarting over their flip flops in the middle east
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going to need a few more sales before I look at it again - am still smarting over their flip flops in the middle east
[[8D]ANNONCEMENT TODAY SEALEGS HITS FIRST 50 BOAT ORDERS MORE THAN A YEARS MANUFACTURING UNDER THE PRESENT CAPABILITY TO SUPPLY CUSTOMERS .is now seeking large manufacturer to shorten delivery time .:D
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So about 5 million in sales in 15 months ($4m a year) and a market cap of $13m. How does this compare to a "good" company like FBU?
09 Aug 2005 09:17
GENERAL: SLG: Sealegs Hits 50 Boats
Listed marine company, Sealegs Corporation Limited (NZX:SLG), today announced
that production orders of the amphibious boats manufactured by Sealegs
International Limited had reached 50 orders.
Production of the 5.6m amphibious boats is done in stages in East Tamaki and
Auckland''s North Shore. The Sealegs amphibious boats are specially designed
to fit inside a standard 20ft container for ease of shipping them to
international customers worldwide.
Sealegs CEO Mr David McKee Wright says that "Sealegs is pleased with hitting
the 50 boat milestone, especially since the first Sealegs amphibious boat was
delivered only 15 months ago".
Production of the Sealegs amphibious boats is currently running at
approximately three boats per month. Mr McKee Wright says the search is also
on for larger production facilities to increase production capabilities so
that lead times for new customer orders can be reduced.
End CA:00119043 For:SLG Type:GENERAL Time:2005-08-09:09:17:22
Production capacity is 3 boats per month = Revenue of $3.6m per year.Quote:
quote:Originally posted by rmbbrave
So about 5 million in sales in 15 months ($4m a year) and a market cap of $13m. How does this compare to a "good" company like FBU?
What is their profit margin on each boat? Is it enough to cover all the "corporate overhead" costs?
What is FBU's Sales/Mkt Cap ratio for comparison?
Jenny Ruth: Boat-builder finding sea legs
19.08.05
Shareholders Association chairman Bruce Sheppard isn't ready to give amphibious boat-maker Sealegs Corp his seal of approval.
Asked if his view of the company has changed from a year ago, when it was described as being "Seadog run by Mickey Mouse", Sheppard asks if there's any reason to change his view.
"Have they just done a deal to sell a minimum of 200 boats a year to some tosser in Europe?"
Not quite, but the company has hardly been idle and has reached several milestones towards building much-needed credibility.
Its history is unfortunate, to say the least. It has been listed on the stock exchange since October 1994 but has never reported a profit. Accumulated losses to March 31 were $36.2 million.
Previous incarnations include mining, chicken farming, a building materials distributor and an investor in high-tech companies, then named IT Capital, before turning into Sealegs in 2003.
That last metamorphosis was a long time coming. The company's two largest investors, managing director David McKee Wright and chief operating officer Maurice Bryham, whose brainchild Sealegs was, took over the company's management in early 2002.
Their original plans to sell three ventures into IT's shell raised Sheppard's ire over inadequate information and the proposed prices of three ventures.
Thanks to a mixture of this criticism and a failure to agree on terms, the duo and the company bowed out of the other two business ideas to concentrate on Sealegs.
McKee Wright and Bryham have also overseen the sale of all IT's high-tech investments, including Terabyte, Golden Orb and then, in July last year, its stake in Deep Video Imaging (DVI), which raised $1.025 million in cash.
That was money the company sorely needed. By March last year, it had only $420,050 in the kitty. The company raised $147,000 during the year ended March through two placements. It also won a couple of government grants, $20,000 from New Zealand Trade and Enterprise last November to assist with patenting costs and $100,000 from Technology New Zealand to develop a new model of boat in May.
Even so, it finished the year to March with just $183,614 in cash. Auditors Ernst & Young again tagged the accounts, saying the company needed extra funding.
It had already been preparing for another rights issue but, first, it announced last November a much-needed share consolidation. Its shares, all 672.4 million of them, were trading at around the 2c level.
It rolled every 16 shares into one from late November and then cleaned up its register by requiring all shareholders to build their stake to a minimum parcel of 1000 shares or have their holdings compulsorily sold.
Sealegs says the number of shareholders dropped from 4759 to 2068 after that exercise, saving the company more than $50,000 a year in costs.
McKee Wright says one of the benefits of the registry tidy-up is that the company shed many of its disgruntled shareholders.
Then in mid-May it announced a one-for-three rights issue priced at 15c a share which aimed to raise $2.12 million.
The company's previous rights issues met significant shortfalls. In November 2003, a one-for-one rights issue of 303 million shares to raise $500,000 ended up with a 69 million share shortfall, which McKee Wright and Bryham took up as underwriters as well as their own entitlements. At March 31, McKee Wright owned 15.7 per cent and Bryham 21.6 per cent, both through family trusts.
In mid-2002, the company tried to raise $3.7 million but managed only $2.1 million, including $1.2 million provided by McKee Wright and Bryham.
But this time around, it found new underwriters, Wellington broker McDouall Stuart.
It agreed to take up to 9.3 million of any shortfall in the 14.2 million share issue. In the event, the issue was reasonably well supported and McDouall Stuart had to take only 3.2 million shares.
"We were happy to underwrite the issue. We undertook extensive modelling of the company and
thanks for the view rb,
very interesting, i am of a similar view ,but i think if you are expecting the price of the boat, to get down to 30,000.oo ,theres not much chance in that.
as you can't buy a 18' boat these days for under 45,000.oo .but as you have said ,the fact that there has been an increase in sales and demand is positive, as well as the loss has been approximatly halved from the previous year,is all positive. it will be interesting if the they can balance the books this year.
being in the softer economic climate, this product is what i consider a high end product.the risk is also high ,but i am one of the shareholders sticking with the share for the time being and have placed 40000 shares into a nursery portfollio.it will be extremely positive if the books balance this march in the current economic climate .this is imo only.
disc;
holding;ing;iftwb;vct
nursery and traders slg;ctl;kid
I haven't bought any - still watching the SP fall.
Another article in the Herald today
Rugged way to chart new water
22.08.05
By Georgina Bond
Sealegs is hoping to tap commercial markets with a new "rugged" version of its boat on wheels.
Company founder Maurice Bryham said the 5.6m all-aluminium D-Tube was more versatile than the company's inflatable model and would suit military and rescue organisations or fishermen.
But he did not think it would slow sales of the rubber inflatables and expected to sell equal numbers of each.
The listed marine company makes amphibious boats - those that can be driven in and out of the water on retractable wheels.
The D-tube, which will retail for $69,000, was unveiled at the Hamilton Boat Show on the weekend.
The craft has a 4mm marine-grade aluminium hull with solid 3mm aluminium foam-filled pontoons and a self-draining deck with scuppers.
Like the earlier models, it will reach a top speed of 60km/h on water and 10km/h on land.
Sealegs' boats are made in stages in East Tamaki and Auckland's North Shore, and sell for an average price of $75,000
Last week, the company said production had reached 50 orders, after the first boat was delivered 15 months ago.
In June, Bryham broke the record for crossing the English Channel. His Sealegs boat took 45 minutes - less than half the time taken by British entrepreneur Sir Richard Branson when he set the record last year.
[img]http://img398.imageshack.us/img398/75/21sealegs0nr.jpg[/img]
Good marketing, looks like Navy has just taken delivery......
With all this recent publicity, is there another RIGHTS issue waiting to be announced?![?]