Sealegs annual loss widens on restructuring costs, impairments

Friday 29th May 2015

Sealegs Corp, the amphibious vehicle maker whose founder had to step in fill the vacant chief executive position last November, reported a wider annual loss in the latest financial year as an overhaul of the business resulted in restructuring costs and impairments.

The net loss increased to $2.4 million, or 1.81 cents per share, in the 12 months ended March 31, from a loss of $833,000, or 0.73 cents, a year earlier, the Auckland based company said in a statement. The latest results included restructuring costs of $506,000 and impairment charges of $598,000. Revenue from continuing operations edged up 3.3 percent to $16.2 million, as the company sold fewer units but at higher prices.

"While the board recognises that the actions taken to restructure the business have resulted in a difficult year, it nevertheless feels these actions were necessary to place the business on a sound footing to move forward," the company said. "In particular, it feels that the steps taken by management through the restructuring will result in meaningful improvement in operating margin and cash generation within the business."

In November, Sealegs turned to founder David McKee Wright to fill the void left by then chief executive David Glen. McKee Wright took up the job on an interim basis, and also re-joined the company's board.

The company raised $1.3 million in a private placement from a Jersey based investor in November, and had cash and equivalents of $2.1 million as at March 31. Sealegs generated an operational cash inflow of $1.1 million in the year, compared to an outflow of $1.3 million in 2014.

Sealegs shares were unchanged at 9.1 cents, and have declined 9 percent this year. That values the company at $12.2 million.

BusinessDesk.co.nz

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