Wellington Drive hopeful

Wellington Drive Technologies has reported an interim loss of $9.85 million, including foreign exchange losses of $1.2 million.

The loss for the six months to June 30 compares with a loss of $4.4 million in the same period last year. Before foreign exchange effects, the loss was $8.6 million, $0.2 million higher than projected in the trading update released to the market on June 10.

Revenue was $10.8 million, up 66 per cent from the same period in 2008. The company is forecasting a loss before tax of $11.4 million for the full year. "Wellington is still targeting profitability in 2010, and this is a core aim for the company."

Stock on hand of $8.9 million was above the figure of $8.5 million at end-2008 and was larger than the forecast $8 million.

"This is a direct result of lower sales during the second quarter of the year," the company said. It is working to reduce inventory.

Receivables of $7 million were lower than the $7.5 million at the end of December.

Margins were yet to show the effects of cost reduction initiatives or better supply chain costs now being achieved by increased throughput.

The company is predicting a substantial lift in margins from the levels currently being reported.

- NZPA