Sealegs Reports 86% Revenue Growth
18 May 2007
18 May 07
Sealegs Reports 86% Revenue Growth
Sealegs Corporation Limited (NZX:SLG) has today announced record operating revenue for the year ending March 31 2007.
The listed amphibious marine craft manufacturer reported operating revenue for the full year (31 March) of $5.35M, an increase of 86% on last years operating revenue of $2.87M. Total deficit for the year was $1.05M compared with $1.21M for the previous year.
Sealegs CEO David McKee Wright says that last October Sealegs signalled it was receiving increasing demand and as a result increased forecast sales from $4M to $5M. “We have exceeded that forecast, which is most encouraging. This is the second consecutive year of 86% compounding growth in sales and it is a trend we are striving to repeat".
Although the company is managing the continued increase in demand with a corresponding increase in production, this has involved moving to larger manufacturing premises three times in the last three and a half years, which has had cost effects.
Even so, the operating deficit, after Research and Development (R&D) expenses are excluded, has been reduced by 54% to $0.49M compared to $1.07M for the previous year. R&D expenses relating to future model development has been fully expensed rather than capitalised.
Commenting on the result, Sealegs CEO David McKee Wright said “this is a great result for last year and the new factory, growing order book and strong international demand puts us in a good position going forward. We are planning to continue our aggressive expansion into worldwide markets and to ramp-up production, marketing and internal systems to support that growth. This will require further investment as we work towards our goal of building Sealegs into a global company”.
Sealegs enters its new financial year with orders for over 50 boats already pre-sold, representing approximately $4 million in future revenue and is ramping up to a production capacity of approximately 200 boats per annum by next financial year.
Sealegs also advised that it plans to have its AGM in Auckland on 31st July 2007.
