WDT - Wellington Drive Technologies

[Balance]

I have received yet another invitation to waste more money supporting WDT.I have refused probably the last three offers and will refuse any future offers until the company proves itself.
One way it could save is to pay Directors and staff based on profit.

You sure you want to refuse this outstanding offer?

This could very well be the one capital raising which turns the company around and make it a billion dollar enterprise.

Remember the story of the boy who cried wolf?

Sure WDT has cried 'just around the corner' 10 times but this could be the one time?

[emearg]

New management and new strategy are delivering improved results. This new guy actually seems capable of running a global business. What you think? Please feel free to keep the sarcasm to a minimum...

Wellington Drive Technologies first quarter 2013 update

3:19pm, 30 Apr 2013 | QUARTER

Auckland, New Zealand - Wellington Drive Technologies (NZX:WDT), a world leader in energy efficient motor, airflow and refrigeration solutions today announced financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Highlights (NZ Dollars)
(All figures below are derived from Wellington's unaudited management accounts):
o Gross Margins of 16.8%, consistent with the company's gross margin improvement plans. This is an increase on the 12.9% level achieved in first quarter 2012, and Wellington's best ever quarterly performance.
o Revenue: $7.6 million compared to $11.5 million in Q1 2012. This performance is on track to our full year guidance of between $30 million and $33 million. The year over year decrease is due to the exit from the unprofitable Zhiel-Abegg Ventilation business.
o EBIT loss of $944k, beating our operating plan expectations by $338k. This is reflective of the cost control and cost reduction programs underway and an improved sales mix with major customers.
o Inventory turns of 5.6 (on a rolling 12 month basis) compared to 4.7 in the same quarter 2012. This is consistent with our expectations and our on-going focus on working capital velocity. Closing inventory of NZ$3.2m, down from NZ$4.5m at end December.
o A $1.2 million reduction in net working capital that has been used to repay bank financing.
"Wellington's first quarter performance was pleasing and consistent with our expectations. Our gross margin performance was a record for us and we believe shows we are on the right path to achieve our 2013 target of between 18% and 20%. With the global economic outlook expected to remain challenging, particularly demand pressures in Europe, we continue to focus on solid execution and innovation for our customers, improving our financial performance through cost improvements and effectively managing working capital and resources to support our longer term growth goals," said Greg Allen, Wellington Chief Executive Officer.
Management Discussion and Analysis
Wellington had a very good first quarter performance with revenues and margin in line with the company's operating plan expectations and on track to published guidance for the 2013 year. A gross margin performance of close to 17% coupled with operating cost performance for the quarter of $2.1m reflect tight control of all aspects of group expenditure and with a reduced depreciation and amortisation charge, delivered an EBIT outcome that was better than the company's operating plan expectations by $338k.
Revenues of $7.57 million were below the $11.5 million achieved in the same period for 2012; however when adjusted for the exit of the Ziehl-Abegg ventilation business they are relatively flat year on year. Revenues are in line with our growth plans and reflect commercial refrigeration volume growth of 3.4%. Our margin of 16.8% was well ahead of last year's 13.4% achieved in 2012, demonstrating our continued focus on managing customer sales mix and supply chain cost reductions. The average US$/NZ$ exchange rate for the first quarter was 0.826US$/NZ$, our guidance continues to assume a 0.85 US exchange rate.
Geographically we experienced weaker than expected demand from most European customers. This European demand weakness was in part offset by strong demand in Latin America and we expect these demand dynamics to continue in the coming quarters. We are comfortable with the business development progress in our main regions and the pedigree of the existing customer portfolio. Our Intelligent Solutions business strategy is starting well, and in the first quarter we shipped our first Intelligent Control Solution prototype to a major global beverage brand.
The Strategic Partner program is continuing well with several discussions held with possible partners in technology and marketing collaboration. The company expectation continues to be that through the course of 2013 this Strategic Partner program will result in a successful outcome for the business and shareholders.
Business Outlook
Wellington's latest revenue forecast is in line with the $30 million to $33 million guidance given in the 2012 annual report. Margin expectations are also on track to the stated guidance targets with a gross margin outlook of between 18% and 20% and an EBITDA loss of less than $3 million. It is pleasing that despite the revenue pressures the company is seeing the outlook continues to be for a consistent margin improvement performance. The global economic outlook remains challenging and while we are pleased with the strength we are seeing in our Latin American markets we continue to manage through the lack of visibility and weakness in our European end market.
The company's focus continues to be on its five main priorities; Market Expansion through Deeper Value Added Relationships with Customers, Shortening Customer Lead-times, Cost Reduction, the Strategic Partner Program and Strengthening the Company Resources to support long term growth goals.

[sharer]

Yes retrograeme i agree with you, optimistic as ever ...
But, it will take actual real money profit required before i loosen the grip on the wallet.

[Snow Leopard]

... Please feel free to keep the sarcasm to a minimum ...

Hoping for a EBITDA loss of less than $3M. That's good.

Best Wishes
Paper Tiger

[winner69]

Hoping for a EBITDA loss of less than $3M. That's good.

Best Wishes
Paper Tiger

World leader they are

[Balance]

SPP raises 51% of money.

Hope the punters know what they are in for?

[emearg]

I kept my cheque book closed, but am liking their improving results. What they need (obviously) is to stop losing money and make some. Enough to justify investing more in them. At that point I'd be happy to average down a bit. Looks like I've learn't a lesson. An expensive one unfortunately.

[Balance]

I kept my cheque book closed, but am liking their improving results. What they need (obviously) is to stop losing money and make some. Enough to justify investing more in them. At that point I'd be happy to average down a bit. Looks like I've learn't a lesson. An expensive one unfortunately.

I met Ross Green over 10 years ago at a broker's presentation by WDT.

He was talking gigantic upside then and turnaround just a year away - while asking for more money!

So WDT's drive towards profit is 10 years closer?

[percy]

I met Ross Green over 10 years ago at a broker's presentation by WDT.

He was talking gigantic upside then and turnaround just a year away - while asking for more money!

So WDT's drive towards profit is 10 years closer?

Did not realise you are a bit of a "new boy" to WDT Balance.?
They had their presentation pretty well polished by then as they had been "well positioned for a turnaround in a year" for the previous 12 to 15 years.
The more things change,the more they remain the same.!!! lol.

[janner]

Why invest in this company ??..

Is that not a reasonable question ?.

It does not send out any TA signals.. and certainly does not meet any FA requirements..

Disc.. Held some about 25/30 years ago.. Long.. Long.. Long time out of it..