WDT - Wellington Drive Technologies

[xpress]

well I can't decide. I still believe in the products and company, but cannot keep pumping money in. Unfortunately just at the moment the company probably will not be able to raise capital any other way. They effectively halved the value of my investment with the pricing of these rights - which puts the market cap back to what it was two years ago. Is this the best for the company? Will they become cash flow positive this year? mmmm

[Nevl]

yep am taking up my rights but I am a sucker from way back for this company and will be over subscribing. However I think they are on the right path though would like to see then developing their own products rather than relying on being a commodity producer. Maybe develop a Wellington brand targeting niche markets where the EC motors are effective but manufactures are not moving to new technology.The appliance market is too crowded but maybe develop motors for car fans and laptops for instance. The cleanroom technology is another instance. There must be other applications where the weight and power advantages make a difference.

[The Doctor]

all sizzle wafting along....will you ever see a 'sausage'?

[ekman]

What will happen now. Rights issue closed. Money in the bank? Increasing sales effort. Manufacturing plants in place. Looking for a cornerstone shareholder.

[tobo]

yep am taking up my rights but I am a sucker from way back for this company and will be over subscribing. However I think they are on the right path though would like to see then developing their own products rather than relying on being a commodity producer. Maybe develop a Wellington brand targeting niche markets where the EC motors are effective but manufactures are not moving to new technology.The appliance market is too crowded but maybe develop motors for car fans and laptops for instance. The cleanroom technology is another instance. There must be other applications where the weight and power advantages make a difference.

(my emphasis.)
The thing is, it's quite a big step to change from the mentality of clever inventor and producer to marketing/packaging.
It has been done, though.

This is definitely a good idea for greatly expanding profits, and is classic marketing business development strategy, but like I said, not a simple change in emphasis.

Held some time ago. Not currently.

[Arthur]

http://www.wdtl.com/rebate_programs.php

[Nevl]

Well happy with the rights issue and very happy with WDT report. Feb has best sales ever and still on target for $40mill. The figures on energy saving are very compelling. The pay back is less than 6 months and in some areas less than 3 months. Thats a lot of money saved in tight times. Oil prices going back up. All looking good for WDT. The better mix of products is helpful and direct sales over the internet is a good step. Lets hope they get more innovative as sales build. Will be interesting to see how many of the Total integration projects turn into real sales. Nice to see that they actually turned down customers who were offering low prices.

I wonder if they could set up a business to take over the refridgeration for a super market and then make money on the lower energy costs.

Anyway happy and still a holder. Roll on 2011

[Lego_Man]

I agree - let's just hope it's not a false dawn though.

I'm looking forward to making some serious coin out of these guys in the long term.

[Anna Naum]

Wellington Drive Technologies Limited have provided NZX with a copy of their Annual Report for the year ended 31 December 2008.

Outlook

As was noted in detail in the Prospectus for the company’s recent rights issue, the outlook for 2009 is for sales of $40 million, with 1 million motors being sold during the year; the first two months of the New Year sees us on target, with February being the best month yet for sales in the company’s history. We expect to achieve a substantial improvement in margins in the second half of the financial year, resulting in a much reduced loss, and we continue to target operating breakeven late this financial year.

While budgets have not yet been prepared for 2010, assuming some further growth in sales,
ongoing tight control of operating costs and that Wellington achieves its targeted gross
margin at the end of 2009, the company expects to operate profitably in 2010.

Directors have resolved that no dividend be declared.

[Lego_Man]

Market loved that, WDT's share price really got a rocket up its rectum today.