Sealegs posts smaller loss

Amphibious boat maker Sealegs today posted an improved full year deficit and said earnings rose 86 per cent in the 12 months to March 31.

The company reported a net after tax loss of $1.26 million. Excluding a one-off $1m gain from the sale of its DVI Investment subsidiary in the March 2005 year, today's result was 40 per cent better than the $2.1m deficit posted a year earlier.

Total operating revenue rose 86 per cent to $2.88m.

Chief executive David McKee Wright said the result showed solid revenue growth from an increase in boat sales.

"The company is looking to continue its revenue ramp with a sales forecast in excess of $4 million in the 2007 year," he said.

Buoyed by strong offshore demand, Sealegs has increased its pre-sold order book to $1.1m.

Sealegs has begun work on its low-cost, high volume project X amphibious boat design. That initiative "could see further substantial revenue growth and operating earnings from 2008/2009 and onwards," Mr McKee Wright said.

Shares in Sealegs last traded up 0.4 of a cent at 16.5c against a year high of 29c and a low of 15c.

- NZPA