By PAULA OLIVER
Shareholders in soon-to-be-listed Wellington Drive Technologies were yesterday told they might have to wait at least another year to see the company break even.
The 10-year-old Auckland business makes brushless motors used in fans, air filters and air-conditioners, but has not yet been able to make a profit.
Chairman Ray Thomson told patient shareholders at the annual meeting that he hoped to have the company listed on the main board by the end of this year. But a profit might take a little longer.
He said the delay was because of a change in strategy. The next six to 12 months would show whether the company was on the right track.
It was now putting most of its resources into pushing a new, extra-quiet motor known as the RF 66. Shorter-term projects had been turned away.
"The change in strategy positions the company well for growth in the medium to long term," said Dr Thomson. "But focusing resources on completing the RF 66 means the company will take longer than we expected last year to reach a break-even."
Wellington Drive Technologies has been trading on the secondary market, but managing director Dr Ross Green said the board felt it would become more credible in the eyes of overseas clients if it was on the main board.
It recently attracted the attention of four institutional investors, and its share price has risen from 20c early this year to $1 in September. Shares closed at 79c yesterday.
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