Choppy markets have driven Future Mobility Solutions to a deeper loss in the March year. Photo/Hawke's Bay Today.
Choppy markets have driven Future Mobility Solutions to a deeper loss in the March year. Photo/Hawke's Bay Today.
Future Mobility Solutions - the company behind Sealegs amphibious craft - said its loss for the March 31 year more than doubled to $6.3 million due to "challenging" conditions in the military and commercial markets.
Revenue came to $52m, an increase of $22m over the prior corresponding period, the companysaid in a statement to the NZX.
Earnings before interest, tax depreciation and amortisation fell to $84,000 from $287,000 in the previous corresponding period.
The company said it continued its "evolution" to a business primarily focused on the military and commercial market globally.
"Whilst the directors continue to believe this will produce appropriate shareholder returns in the medium to long term, in the short term this has proven challenging," it said.
In particular, with increased reliance on government contracts, the business had inevitably become one where larger contracts dominated the earnings and cash flow of the group.
"Whilst this has the benefit of scale, so it also means the earnings are less predictable than historically," it said, adding the pattern was likely to continue.
The group's cash flow was severely adversely impacted, in both Asia and North America, from its government contracts which led to significant working capital constraints on the business.
"The directors expect this to improve in the current financial year but it will continue to be challenging," the company said.
The result includes a full 12-month result for all FMS investments as opposed to the previous financial report which recorded only a part-year consolidation due to the timing of the acquisition.
FMS's loss came to $2.9 million in the March 2018 year.
The company's shares last traded on the NZX at 8c each after peaking mid-way through last year at 15c. -- Jamie Gray
