By Joe Helm
Electric motor company Wellington Drive Technologies will soon seek a listing on the main board of the New Zealand Stock Exchange.
At present the company, which has about 1000 shareholders, has its shares listed on the unregulated Sharemart market.
Wellington Drive shares were trading at 20c on that market yesterday.
In the six months to December 31 Wellington Drive, which is 33.1 per cent owned by listed investment company Strathmore Group, traded at a $477,000 loss.
That compared with a $695,000 loss in the previous corresponding period and was in line with directors expectations.
Wellington Drive has commercialised its brushless direct current electric motor.
Unlike others the motor is essentially all plastic apart from its magnet and windings.
In recent months Integrated Motions Controls has started production of a dual motor assembly used in restaurant food processing equipment.
A pre-series production run was completed in early March and production volumes are now ramping to the full level of 250 units a week.
Shurflo Pump Manufacturing is building a pre-series quantity of long life air moving units for heavy trucks.
The units can be fitted to the existing truck fleet without any wiring changes.
Subject to satisfactory field trials Shurflo will start production in the fourth quarter of this year.
The joint venture with Technical Motor Co of Melbourne has encountered moderate delays with the production of tooled motor and electronic components for an evaporative cooling fan.
Directors said these activities, which they consider vital in maximising the company's future value, will require additional finance so a listing will probably be sought soon.
Dr Ray Thomson, chairman of Strathmore, said Wellington Drive was looking at its options.
A sharemarket listing provided better liquidity in the company's shares and made it easier to raise capital.
A listing would also provide better publicity for the company.
At December 31 Wellington Drive had shareholders equity of $826,000 and total assets of $978,000.
The company had accumulated loss of $7,228,000.
While Strathmore is pleased with its investment in Wellington Drive, its 52.7 per cent owned encryption company CES Communications remains a disappointment.
In the six months to January 31 Strathmore wrote down goodwill by $1.08 million including $867,000 from CES.
That plunged Strathmore to a $1.535 million loss in the six months, well above the $438,000 lost in the previous corresponding period.
Dr Thomson said CES continued to trade at a loss.
Electric motor firm seeks listing
AdvertisementAdvertise with NZME.