WDT - Wellington Drive Technologies

[winner69]

Love this bit out of WDT Report



Over the past eighteen months Wellington has focused on improving its ‘execution-engine’ so that growth of the business would deliver the right financial performance for stakeholders. As stated previously, Wellington chose not to just ‘win volume to build scale’ until its ‘execution engine’ was working. This is called ‘earning the right to grow’. Wellington’s operating and financial performance continues to improve and the Board and Management are confident that all the appropriate actions are underway to improve the execution engine and deliver on financial promises. As result of this growing confidence, the focus is shifting to the actions and investments that will be necessary to return Wellington to a path of accelerated growth.

[silu]

Love this bit out of WDT Report



Over the past eighteen months Wellington has focused on improving its ‘execution-engine’ so that growth of the business would deliver the right financial performance for stakeholders. As stated previously, Wellington chose not to just ‘win volume to build scale’ until its ‘execution engine’ was working. This is called ‘earning the right to grow’. Wellington’s operating and financial performance continues to improve and the Board and Management are confident that all the appropriate actions are underway to improve the execution engine and deliver on financial promises. As result of this growing confidence, the focus is shifting to the actions and investments that will be necessary to return Wellington to a path of accelerated growth.

Can you then explain it to me please?

[simla]

Board and Management are confident that all [emphasis mine, simla] the appropriate actions are underway to improve the execution engine and deliver on financial promises. As result of this growing confidence, the focus is shifting to the actions and investments that will be necessary to return Wellington to a path of accelerated growth.

Thanks for pointing that out, Winner. That would appear to be significant. No, I'm not sure what it means either, but it pretty clearly implies that they have been up to something deliberate and are now going to try to leverage on that.

I must say, WDT is turning into an interesting company. They spent many years trying to sell the "better" motors without a great deal of success, and then the "new" guy (2011 new!) basically took the tack (as I read it) that buyers only bought on price and so WDT had to compete on technology AND price and has spent years getting the margins up to make the company competitive. Not only has this succeeded very well, but then the company has leveraged its technical prowess and opened another front with the IoT point of sales.

All of which is starting to work out very well, except that the world is getting to be a chilly place. So that comment you quoted is useful knowledge in that it implies they still think they have more gas in the tank.

I wish I had a crystal ball on where this is going. The management seem to be great, and WDT are in the right places (energy efficiency, IoT, point-of-sale marketing), and yet the times are turning tough generally if we believe the media. What a cliff hanger for investors! Great things around the corner? Maybe, maybe not! Possibly the big payoff for this company hangs somewhat on whether smartphone apps will continue to generate good revenue as/if the world economy tightens, as that is where the IoT payoff seems to lie?

Anyway, there is no doubt that this company gives things a go.

[simla]

Winner, thanks for posting that. But I cannot find that text anywhere. Where did you find it please?

[winner69]

Winner, thanks for posting that. But I cannot find that text anywhere. Where did you find it please?

Sorry ....part of the post got lost when I tried to be the extract in italics. I’m sure I had ‘...from a year or so ago’ there.

Never mind ....it’s something that I remembered Greg Allen saying back then and I was wondering if they had at last ‘earned the right to grow’

I’ve been following Wellington since last century and you’d be amazed what I’ve collected on them over the years. I’ve had a few successful forays into them over the years but not recently.....you never know I might join you one day if they have earned that right to grow.

[simla]

Thanks, Winner. Memory is a great asset too. However, that means we are not really a whole lot wiser what that means presently. Oh well.

[winner69]

Thanks, Winner. Memory is a great asset too. However, that means we are not really a whole lot wiser what that means presently. Oh well.

Part of their long term strategy and how Greg thinks though

[golden city]

Disappointing result year in year out trying to be profitable. What can I say a good management in a bad business that is sum up

[Brain]

A very tricky business to be in. Yes you have to give the management credit for what they have achieved.

[winner69]

I’ve yet to be convinced (over more than 20 years) that Wellington have ever had anything special or unique in their ever changing product / service portfolio

That to me is why they’ve never made money or are unlikely to make much going forward.