Sealegs predicts annual loss after sales fall

Photo / Dean Purcell

Amphibious boat maker Sealegs has informed the stock exchange it will most likely report a trading loss in its annual result next year.

The Albany-based, listed manufacturer yesterday reported a $941,000 loss for the six months to September 30, 2010 - up on the $784,000 it lost in the previous corresponding period.

Sales were down 7 per cent on the prior period at $4.3 million, it said.

Sealegs reported its first profit of $642,000 in May for its 2010 full-year. The firm said it expected some profitable trading over the next six-month period but investment in people, systems and product development would "most likely" lead to a trading loss at March 31, 2011.

Sealegs chief executive David McKee Wright said the six-month result was not unexpected in the "persisting global economic conditions".

"[This] was a year where the focus had been on building capacity, implementing new systems and developing new products," he said.

The firm had made many achievements during the six months to September, including the appointment of "key people" in the US and France and a partnership with the All Blacks, McKee Wright said.

The company gained shareholder approval in July for Mauritius-based Avenport Investment Corporation to increase its share to an effectively controlling stake of almost 40 per cent.

"The partnership with Avenport Investment Corporation has resulted in the company moving towards a more focused strategy and long term vision," he said.

Sealegs' share price closed down 2c, or 9 per cent, at 20c last night.