Sealegs reduces losses

Amphibious boat maker Sealegs today posted an improved deficit for the six months ended September 30, and said it expected to break even next year.

The listed marine company said its total operating loss of $499,343 was a 31 per cent improvement on a year earlier, and included a $391,746 writedown of research and development expenses.

Revenue rose 118 per cent to a record $2.6 million.

"Our aggressive policy of writing off R&D costs rather than capitalising them means we are absorbing development costs now even though they are for future year's models," Sealegs chief executive David McKee Wright said.

"The earnings result, excluding R&D, demonstrates the company's ability to break even next year and then move to profitability."

Sealegs has received 18 new amphibious boat orders from customers in South Korea, Britain and Kuwait, representing about $1.4 million in forward revenue.

Shares in the company, which received a $410,000 NZ Trade and Enterprise grant this year to develop the next phase of its amphibious boat, were up a cent at 25c, matching its highest level since October 2005.

- NZPA