Health issues behind change for Wellington

Ross Green will advise the company's new CEO. Photo / Paul Estcourt

Health issues have forced the chief executive of listed North Shore electronic motor manufacturer Wellington Drive Technologies to step down from the top job as soon as a replacement is found.

Ross Green, who has been in the role since 1999, said the side effects of medication for rheumatoid arthritis made his job challenging, particularly with the large amount of international travel it involved.

But he will not leave the Albany-based firm entirely.

"Once [the new CEO is] appointed I'll act in a supporting role," Green said. Wellington chairman Tony Nowell said an international recruitment search was under way.

"It is timely for someone else to come and take the lead," he said. "The business is moving into a new phase - revenue is moving in a very good direction."

The company announced yesterday that it had made a good start to its current financial year, with New Zealand dollar revenue up 53 per cent.

Sales of $11.9 million were achieved in the four months to April 30, with an ebitda loss of $2.3 million, the firm said.

The company, which reported a net loss of $14.8 million for its last financial year, has conducted two capital raisings in the past eight months, including one completed in February that netted $8.4 million.

Nowell said the capital raising had resulted in Wellington having 1.34 billion shares on issue.

To deal with that problem, the company was undertaking a share consolidation, which would involve every 20 shares held on June 30 being consolidated into a single share. The company said the consolidation would reduce shares on issue to 67.4 million.

Nowell said the company was nearing revenues that would see its sales turning the firm's first profits.

Wellington shares closed up 0.1c, or 6.67 per cent, at 1.6c last night.