Sealegs seeks partner to finance boats on wheels

Amphibious boat builder Sealegs is seeking an investor as it gears up to mass produce its boats on wheels.

Managing director David McKee Wright said it was seeking $2 million to $6 million from a partner in the marine industry.

Sealegs was selling more boats than it could produce, with an order book in excess of $1.75 million coming off the back of the London Boat Show last week and is ready to move from making 50 boats a year to 500, he said.

Sealegs boats can be driven in and out of the water on retractable wheels and the 5.6m inflatable and aluminium models sell for between $70,000 and $100,000.

With freight costs raising that price higher still for overseas customers, who make up 50 per cent of sales, only a few could afford the boat.

The next step was to open up its market with a high volume, low cost, fibreglass recreational model in the $30,000 to $50,000 price bracket, he said.

This required a capital partner and McKee Wright hoped to attract a company with boat building experience and international sales channels.

The move was likely to see its manufacturing, at present outsourced around New Zealand with the final assembly at its Albany factory, brought together under one roof.

"Sealegs' profitability will come from scale not small boutique manufacturing," he said.

Boosting revenue by licensing its hydraulic wheel system to other boat manufacturers was a further possibility beyond its high-volume manufacturing plans. Another long-term plan was to put wheels on jet skis.

Sealegs shares closed at 18c last night, having traded at between 15c and 39c in the past year.