Sealegs ekes out full-year profit, raising prices as volume of boats sold slips

Tuesday 21st May 2013

Sealegs Corp, which makes amphibious boats, posted a return to full-year profit after raising prices while sales of its vessels slipped.

Profit was $204,000 in the 12 months ended March 31, from a loss of $1.86 million a year earlier, the Auckland-based company said in a statement. Sales rose about 19 percent to $16.4 million.

The company sold 104 boats in the latest year, from 106 vessels 12 months earlier, though this was offset by an increase in the average unit price of 17 percent to $149,000 as it introduced new models. Sealegs is planning a push into the commercial market, using its technology and a government grant to develop larger vessels for customers including law enforcement agencies and the military.

"While boat sales in a predominantly recreational market remain at a constant level in the current challenging export and foreign exchange environment, Sealegs is making a strategic investment in the development and commercialisation of Sealegs technology for larger amphibious vessels, with substantially higher load carrying capability," chairman Eric Series said.

The company has also made sales of amphibious technology kits that can be installed on other makes of boats.

Sealegs isn't paying a dividend. It had cash and bank balances of about $3.66 million as at March 31, down from $4.1 million a year earlier.

The shares last traded at 13.5 cents, valuing the company at $16.4 million, and have declined 16 percent this year.

BusinessDesk.co.nz

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