Wellington Drive post loss despite revenue pickup

Electric motor designer Wellington Drive Technologies (WDT) posted a slightly higher net loss for the half-year ended December 31, despite a huge jump in revenues.

WDT reported a net loss of $2.6 million, up from a net loss of $2.5 million the previous December half.

The loss was on the back of total operating revenue of $3.3 million, which was up 175.7 per cent on the $1.2 million reported for the previous corresponding period.

The company said the higher revenue did not translate into higher profit mainly due to higher transport and manufacturing costs for goods made in Auckland, as well as abnormal costs associated with urgent deliveries.

WDT said it has shifted some production to Asia, and the benefits of this should be seen in the company's second half year results.

"As the first stage of expansion of our supply chain in Asia is now substantially complete, we are able to deliver increased volumes of products without extraordinary costs being encountered to the same extent as previously," the company said in a statement.

- NZPA