Mooring Systems expecting profit in Sept year

A Moormaster berthing unit at the Port of Melbourne.

CHRISTCHURCH - Mooring Systems is predicting a return to profitability for the current half year and says it is chasing "breakthrough" projects overseas.

Managing director Peter Montgomery told shareholders at today's annual meeting that the Christchurch firm's financial performance had improved from last year and they could expect the engineering company to deliver a net surplus for the half to September 30.

"It is however premature to comment on the final result for the full year albeit we can state that this final result will be significantly improved on the previous year's performance," he said.

However, the news did not please everybody and Mooring Systems shares were sold 40c to $3.80 today.

Founder Mr Montgomery said Mooring had experienced a "strong influx" of sales inquiries in the last year but added the transition from enquiry to actual sale was on average taking longer than the company expected.

The company had more than 20 prospective deals in front it of and seven patent applications under consideration in 10 different countries as it sought to protect its trade secrets, Mr Montgomery said.

"When I look at our market we are surrounded by some magnificent opportunities, any one of a number of which I would term a potential 'breakthrough project'," he said.

"I do not use this term 'breakthrough' loosely. It's because of the prominent nature of the customers involved, the nature and scale of potential projects we are examining and the downstream industry effect these projects would likely produce if they progressed."

Chairman Michael Cashin said the company already had enough cash in the bank -- excluding profit generated from future sales and the recently announced Toll Holdings order -- to meet its operating costs for at least another 18 months.

Mr Cashin said Mooring had invested a considerable amount of executive time into developing relationships with European licensing partner Cavotec, including educating staff about technical aspects of Mooring's products.

"Our short term pay back has been to secure an order to install two MoorMaster 400 automated mooring systems at the Port of Salalah," he said.

The firm was encountering greater appreciation of automated mooring systems overseas and the momentum of interest was gaining speed, he said.

Sites in Dover and in Salalah would be operational in coming months, providing important reference sites in the Northern Hemisphere to assist Cavotec in trying to secure sales.

- nzpa