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02-03-2019, 09:36 PM
#901
Member
Only the negative NPAT might be considered a slight disappointment after their 18/10/18 forecast « achievement of net profit remains a target. »
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03-03-2019, 08:26 PM
#902
Member
Originally Posted by emveha
Only the negative NPAT might be considered a slight disappointment after their 18/10/18 forecast « achievement of net profit remains a target. »
Hopefully see a trend breakout post this announcement!
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04-03-2019, 10:19 AM
#903
Gosh only just saw this.......very impressive gains in all areas. Nothing to complain about there, in fact quite phenomenal growth all-in-all.
NZD (unless otherwise stated)
31 December 2018
2017 Change
Revenue $58.8m $43.3m +36%
Wellington Connect IoT Revenue $17.2m $10.3m +67%
ECR Motor Revenue $38.6m $30.3m +27%
Gross profit $14.3m $10.3m +38%
Gross margin % 24.3% 23.9% +1.6%
EBITDA1 $2.464m $0.538m +358%
Loss for the year ($0.713m) ($1.98m) 64%
Operating cash flows $1.849m $1.257m +$0.6m
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04-03-2019, 10:44 AM
#904
Originally Posted by GR8DAY
Gosh only just saw this.......very impressive gains in all areas. Nothing to complain about there, in fact quite phenomenal growth all-in-all.
ZD (unless otherwise stated)
31 December 2018
2017 Change
Revenue $58.8m $43.3m +36%
Wellington Connect IoT Revenue $17.2m $10.3m +67%
ECR Motor Revenue $38.6m $30.3m +27%
Gross profit $14.3m $10.3m +38%
Gross margin % 24.3% 23.9% +1.6%
EBITDA1 $2.464m $0.538m +358%
Loss for the year ($0.713m) ($1.98m) 64%
Operating cash flows $1.849m $1.257m +$0.6m
GR8, Im not sure why Mr Market does not like these numbers today, maybe he is looking for a larger absolute profit, patence needed this is a turn around story in my mind.
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04-03-2019, 11:20 AM
#905
Originally Posted by whatsup
GR8, Im not sure why Mr Market does not like these numbers today, maybe he is looking for a larger absolute profit, patence needed this is a turn around story in my mind.
Might have been spooked by another year of cash burn ....$2m this time
Been in turn around mode for some time now eh .....maybe one day, just maybe, it will be great
I thought the IoT was old hat ....or is it that I cannot keep up with this buzz word stuff.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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04-03-2019, 12:36 PM
#906
Member
Originally Posted by winner69
Might have been spooked by another year of cash burn ....$2m this time
Been in turn around mode for some time now eh .....maybe one day, just maybe, it will be great
I thought the IoT was old hat ....or is it that I cannot keep up with this buzz word stuff.
Eitherway. I'm in awe of how NZX never fails to disappoint!
What does a company need to do to change the outlook? 30% up from last year is huge!! I'm more than happy they are reinvesting. Shows they are aiming for growth and not quick profits.
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05-03-2019, 10:25 AM
#907
Originally Posted by winner69
Might have been spooked by another year of cash burn ....$2m this time
Been in turn around mode for some time now eh .....maybe one day, just maybe, it will be great
I thought the IoT was old hat ....or is it that I cannot keep up with this buzz word stuff.
Originally Posted by NeverQuestion
Eitherway. I'm in awe of how NZX never fails to disappoint!
What does a company need to do to change the outlook? 30% up from last year is huge!! I'm more than happy they are reinvesting. Shows they are aiming for growth and not quick profits.
I wonder if perhaps WDT is in a somewhat similar position to THL presently, with the market seemingly ambivalent about the value of each share? Both have a traditional market seemingly under some economic pressure presently perhaps due to world uncertainty (WDT = EC motors, THL = tourists dollars) and yet each also has a new-tech business that may or may not pay off well (WDT = IoT point of sale, THL = th2 user app). Both are trying to move their business with the times, and both (in my opinion) are very well managed and as illustrated by these changes. (Yes, obviously the two are very different in many other ways, this is just for the purposes of discussion.)
And like THL perhaps (as I read the THL shareholders anyway), I wonder if shareholders in WDT are uncertain exactly what the new technology boils down to and its impact on the company. I am certainly still trying to get a clear understanding about WDT's IoT, for instance. IoT (Internet of Things) is a broad market, whereas WDT has a specific corner of it in view.
The 2017 annual report, for instance, lists these (p3) and the following is my guess at a short description of each:
IoT hardware - the equipment in the coolers can talk via wireless for remote control and monitoring, a reason to buy WDT hardware
Proximity Technology - hardware/software which allows communicating with nearby user smartphones for promotion, another reason to buy WDT hardware
Smart Coolers - this is the IoT data services as far as I can tell (?), builds on that to provide reporting on everything to retailers and their suppliers?
iPX - the iProximity software, an app to allow retailers and suppliers to leverage all that to control and use all this for promotion?
Is that a fair description or am I misunderstanding? I'm not sure and certainly welcome other interpretations and correction.
Presumably reflecting the different outlooks of the two halves of the business, the latest 2018 result https://www.nzx.com/announcements/331370 said:
Of the motor sales : "With this as a backdrop, initial demand forecasts for EC motors from some major customers have been muted and are showing signs of being lower than 2018. "
Of IoT : "IoT demand forecasts continue to look robust, with this part of the business expecting continued full year revenue growth of around 30%. IoT is anticipated to contribute close to 41% of total revenues. Gross margin for the IoT business is expected to increase due to an improved product mix, and in part due to the expanding nature of higher margin data and software revenue."
Overall : "During 2019 Wellington will continue to focus on investment in new software development, customer-facing skills, new customer IoT programmes and expanding its ECR2 motor platform. Wellington will continue its revenue diversification strategy by broadening IoT growth beyond its historical carbonated soft drink beverage market focus and obtaining new customers for its ECR2 motor range.
"The company’s business mix is changing and is increasingly targeted to its higher margin IoT products. Accordingly, EBITDA1, Net Profit and operating cashflow are expected to be higher in 2019 when compared to 2018."
Just my personal thoughts. I own shares.
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05-03-2019, 10:33 AM
#908
Hi SIMLA. I think the very basic takeaway from all this is that every arrow is pointing north for WDT and they seem to have a clear plan to further expand. I am left with nothing other than a feeling of confidence that this very well run company, producing environmental friendly products (see charts on website re emission reductions) will continue to go from strength to strength..........as demonstrated over the last few years. Happy holder.
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05-03-2019, 11:40 AM
#909
Seems as though market is giving back all the gains from past few months.
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05-03-2019, 04:44 PM
#910
Member
Originally Posted by sb9
Seems as though market is giving back all the gains from past few months.
It was a terrible result. Look for the dead cat bounce! Going lower. (Anyone would think the company just filed for bankruptcy!! Under reaction much?! )
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