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Amphibious boat maker Sealegs has blamed new international accounting standards for its $1.7 million March year loss.
The loss reported today compared with $1.05m in 2007.
Managing director David McKee Wright said newly adopted International Financial Reporting Standards (IFRS) required staff share options, valued at over $4m, to be put on the books.
Should the scheme be valued at today's market values, then the expense would be half of what has actually been recorded, he said.
"Timing and an inequitable accounting standard (IFRS) will mean the next three years of operating profit will have a theoretical expense booked against it."
The expense did not affect cash flow.
Cash flow from operating activities was minus $2.4m compared with minus $427,981 a year earlier. Payments for suppliers and staff rose to $10.7m from $5.8m a year earlier while receipts from customers rose to $8.1m from $5.3m.
Revenue from ordinary activities rose 92 per cent to $9.6m in the year while the cost of sales rose to $6.8m from $4m.
Mr McKee Wright expected Sealegs to almost double revenue to $18m next year and double that again in 2010/11.
The operating deficit for the year was cut to $278,000 compared to $976,000 for the previous year.
Mr McKee Wright noted the company had doubled its staff and taken on another 1000 square metre factory.
The company shipped 112 boats during the year.
"Sales beyond these numbers should provide profits that will vary according to how fast the company develops new markets, new products and sales territories," he said, adding the company was confident of achieving targeted margins.
In the company year $1.3m will be invested in new models and technology.
The company had orders for 102 boats, already pre-sold, representing approximately $10m in future revenue.
No dividend was declared.
Sealegs shares were down 2 cents to 53 cents shortly after the result. They have fallen from $1 at the end of May last year but are up from a low of 35 cents on April 1.
- NZPA
