Sealegs Half Year Result
17 November 2009
Sealegs Corporation has today announced that sales for the half year ending 30th September 2009 were $4.3m, up 14% on the prior 6 month period ending 31 March 2009 of $3.8m. The loss for the period was $784K, compared to the prior 6 month period loss of $4.9m.
During the half year the company invoiced 36 boats and as at 30th September had more than 40 boats on order representing approximately $4m of forward revenue.
Sealegs CEO David McKee Wright said "the result was acceptable given the global economic conditions at the time. The first 3 months of the reported period were disappointing and difficult but recent sales activity suggests the worst is behind us and the company should enjoy a much better second half to the year”.
He went on to say “a recent doubling in the demand for rescue boats was particularly pleasing. Whilst the recreational market will always correlate to the economic conditions, the commercial and government market sector is driven by need and there is a growing demand and appreciation for Sealegs amphibious boats in that sector. The recent deliveries to the Police in India, Fire Department in Malaysia, Coastguard in NZ and State Emergency Services in Australia are proving Sealegs unique amphibious abilities and subsequently creating sales demand”.
Regarding the exchange rate Mr Mckee Wright said “the majority of Sealegs sales are denominated in New Zealand dollars and as a result the financial result was not overly affected.” He went on to say “the strengthening of the NZ dollar has increased the local selling price in international markets and is beginning to cause pricing pressure”.
Looking forward Sealegs is anticipating a positive response to its US based initiatives, and with the Southern Hemisphere summer season approaching a growing local demand in both Australia and New Zealand.
We are expecting to see some profitable trading months in the last half of the financial year.
