Thursday, November 14, 2019
News
NEWS HOME
»
PRN INDIA
Wellington Drive Technologies third quarter update
  SocialTwist Tell-a-Friend  
   

Wellington announces improved Q3 result and updated 2019 guidance

AUCKLAND, New Zealand, Oct. 22, 2019 /PRNewswire/ -- Wellington Drive Technologies (Wellington), a leading provider of Internet of Things (IoT) solutions and energy efficient motors to the retail food and beverage industry, today announced its unaudited trading results for the nine months ending September 2019 and the third quarter 2019 (Q3 2019).

Financial Metrics

Nine months ended 30 September

2019

2018

Change

Revenue

$45.9m

$40.7m

+13%

Wellington Connect IoT Revenue

$17.5m

$12.7m

+38%

Wellington ECR Motors

$27.0m

$26.6m

+1%

ECR2 Motor Revenue

$16.6m

$12.1m

+41%

Legacy ECR Motor Revenue

$10.4m

$14.5m

-30%

Gross profit

$11.9m

$9.9m

+20%

Gross margin %

26.0%

24.4%

+1.6pp

EBITDA reported

$3.10m

$1.11m

+179%

EBITDA pre fair value adjustment

$2.67m

$1.11m

+140%

EBIT

$1.30m

($0.22m)

+$1.52m

Profit (loss) before taxation

$0.58m

($0.77m)

+$1.35m

For the nine months ended 30 September 2019, the company delivered 13% revenue growth, with revenue at $45.9m, compared to $40.7m for the same period last year.  Revenue from IoT products was 38% higher, revenue from the ECR2 motor platform was 41% higher and revenue for legacy motor products declined consistent with forecast.  

Gross margin improved from 24.4% to 26.0% reflecting lower unit costs for Wellington's ECR2 and SCS Connect products and the increasing IoT product share.

EBITDA[1] for the nine months was $3.1m versus $1.1m for the same period last year, a result which included a $0.4m non-cash accounting gain arising from a change in fair value of the contingent consideration payable for the acquisition of iProximity Pty Limited. EBITDA[1] excluding this gain was $2.7m.  Net profit for the nine months, including the fair value adjustment, was $0.58m, up from a loss of $0.77m last year.

Revenue for Q3-2019 was $12.6m which is consistent with Q3-2018.  Gross margin was 26.7%, an increase over the 23.8% recorded last year for the same period.  For the quarter Wellington achieved an EBITDA[1] surplus of $0.7m, which included the $0.4m gain from the iProximity fair value change.  

CEO Greg Allen commented "Our Q3 result keeps the company on track to achieve its 2019 guidance. The third quarter generally sees lower seasonal trading volumes, which was the case, while it was pleasing that we managed a small EBITDA profit in the quarter (compared to the same quarter in 2018 which was breakeven). We were particularly satisfied with the year over year margin improvement, as a result of cost reduction efforts and the continued benefit from the change in mix towards our ECR2 and IoT and data services products. Our business development efforts are uncovering new opportunities for our iPX digital marketing platform in food and beverage, which whilst early in nature, are an important indication of the attractiveness of our marketing services solution."

Other highlights in the quarter

  • New IoT business opportunity in the Americas:  The company is in the latter stages of negotiation for a new IoT business opportunity with a large manufacturer of commercial coolers in the Americas. Wellington's confidence at this stage of discussions stems from the fact there is an existing long-standing commercial relationship with this customers on another line of business. The Wellington board has approved the commencement of early development work on customer specific applications.
  • Data services growth:  Services billings for the nine months ended 30 September 2019 were US$1.4m, an increase on the $1.0m billed for the same period in 2018.
  • New Product Progress: The company shipped the first ten proof of concept models of its SCS Network Cellular IoT Hub to selected beverage customers. This early stage product is already receiving strong indications of interest.
  • Debt repayment:  In September, Wellington repaid $1.5m of debt to Onimeg Investments Limited and negotiated a six-month extension of the remaining $1.0m.  Borrowings (excluding lease obligations) amounted to $3.2m compared to $4.8m at 30 June 2019.
  • Cash:   Cash on hand at 30 September 2019 was $2.5m compared to $1.8m at 30 June 2019.
  • Working capital:  Trade receivables were $7.0m lower than 30 June 2019 at $11.1m.   Inventory was $0.8m higher at $5.2m as a result of the falloff in legacy motor business. Trade payables were $4.0m lower at $12.6m.  Operating cashflow for the quarter was strong at $3.3m.
  • Contingent consideration due to the vendors of iProximity Pty Limited:  In July 2019, Wellington issued 1,417,344 shares to the vendors of iProximity Pty Limited pursuant to the sale and purchase agreement and reflecting the achievement of SCS Connect volume targets for 2018.

2019 Outlook

Wellington's strategy will continue to focus on growing its IoT business with large food and beverage brands, developing customers for its iProximity digital marketing platform and developing new customers for its ECR2 and soon to be launched ECR2+ motor.  

As a result of growth in new customers won in the previous year, a slightly stronger third quarter and continued favourable USD/NZD currency rates, Wellington is adjusting its previous EBITDA guidance up from around $3.0m to now be between $3.0m and $3.5m. Net profit is now expected to be around break-even, and operating cashflow somewhat higher in comparison to 2018.  Guidance excludes any fair value adjustment that may occur as a result of iProximity contingent consideration.

The company's total revenue in 2019 is expected to be at similar levels to 2018 due to the decline in legacy motor volumes offsetting the growth in the new ECR2 and IoT products.  Hardware revenue volatility is expected to continue during the fourth quarter as customers manage for year-end inventory and first quarter readiness.

2020 initial outlook

Forecasts for 2020 are in the early stages, with customers typically releasing next year's demand in late fourth quarter or early in the New Year.  The company's early planning models suggest revenue growth of 10% is possible, with further improvements in EBITDA, net profit and positive operating cash flow versus 2019. The forecast is based on a NZD/USD exchange rate of $0.65 and assumes the company is adequately funded to execute its operational and growth plans. Forecasts are based on the general assumption of stable global macro-economic conditions, including stabilising of current global trade agreements.

EBITDA[1]  (i.e. Earnings before interest, taxation, depreciation, amortisation and impairment) is a non- GAAP earnings figure that equity analysts tend to focus on for comparable company performance analysis. Wellington considers that it is a useful financial indicator because it avoids the distortions caused by differences in amortisation and impairment policies.

About Wellington Drive Technologies:

Wellington is a leading provider of IoT solutions, cloud-based fleet management platforms, energy-efficient electronic motors and connected refrigeration control solutions. It serves some of the world's leading food and beverage brands and refrigerator manufacturers and offers proximity-based marketing for Smart Cities to the Australian market. Wellington's services and products improve sales, decrease costs and reduce energy consumption. Headquartered in Auckland with a global reach, Wellington is listed on the New Zealand stock exchange under the ticker symbol NZ:WDT

For further information visit www.wdtl.com

More News by PR Newswire India

Ascensia Diabetes Care Celebrates the Important Role Families Play in Supporting People With Diabetes on World Diabetes Day 2019

International Peacemaker Professor Padraig O'Malley Receives Prestigious Henley & Partners Global Citizen Award

Higher Adoption of Emerging Technologies in Commercial Vehicles Stoke OEM Collaborations with Technology Developers

Chubb appoints Jason Keen as Division President, Chubb Global Markets

Adyen Launches Card Issuing Offering

NordVPN Officially Launches Its File Encryption Tool NordLocker

Innovative Term Product From ICICI Prudential Life Offers Life Cover to Individuals With Health Conditions

Industry Should Set Up Online Portal to Facilitate International Patients - Commerce Secretary

Sales Performance International Announces New Major Account Planning for Salesforce

Tradewind Announces $2.5 Million Credit Facility for Sustainable Homewares Company based in China and the USA

Introducing Maxima and Maxime, new premium fragrances to step up fragrance category

Queen's University Belfast Affirms Their Focus on Employability for Indian Students at Experience Queen's Event in Bangalore

Marketing analytics firms Marketscience Consulting and Truesight Consulting merge to deliver more unified and advanced client solutions

People Were Willing to Cooperate in Ayodhya Matter, Says Sri Sri in his EU Address

Nucleus Software Appoints Prakash Purushottam Pai as Chief Evangelist Officer

Prime Minister of the Republic of Singapore Intrigued by WeBank's Fintech-powered Services at SFF x SWITCH

Vakrangee Q2FY2019-20 Financial Results

Mumbai-based Artists 'Hari & Deepti' Revealed as the Next Four Seasons Envoys: Paper and Light Tell Their Story

Suning Sets New Singles' Day Record with Omni-Channel Orders Increasing by 76%

Indian Top Artist in Ketterer Kunst Auction in Germany

Bright Pattern Recognized for Highest ROI and Fastest Time to Deploy of All CCaaS Providers

Bloom Hotel Group bets Aggressively on Gujarat

'What Is Love?' - Burberry Reveals Festive Campaign

IIHM Young Chef Olympiad 2020 Launched at House of Lords, London

Chemetall completes expansion of its production site in Langelsheim, Germany

Gizmobaba, the Crossborder Social eCommerce Platform Gets Shortlisted for 3rd Startup India Investment Summit in China

International Gas Union Reaction to the IEA World Energy Outlook 2019

AI-Driven Health Benefits Platform ekincare Raises USD 3.6M

Wi-Fi Now Awards TalkTalk and ASSIA with "Best In-home Wi-Fi Product"

Enterprise AI Market in India is Heading Towards a Wider Adoption, Says New Study by Analytics India Magazine & BRIDGEi2i

Asia's Fastest Growing Cloud Telephony Platform, Exotel, Will Close the Year at Rs. 120 Crores

CreativeSprout's Assimilate to Organize India's First Health Marketing Summit in New Delhi

Megha Gas: An Extraordinary Beginning: Building Gas Infrastructure Aggressively for a Green Future

CIIE 2019: Yili Establishes Dairy Industry's First Sustainable International Supply Chain Network

Derana TV Selects LiveU Technology for its Entire Newsgathering Operations

Pennar Industries Reports 85% y-o-y Increase in Q2 FY2020 Consolidated PAT After Minority Interest at INR 23.5 Crore

Punjabi is the Fastest Growing Spoken Language in Australia: Australian High Commissioner Harinder Sidhu

Over 1,000sqm of Absen LED Used at GITEX 2019

INNOPIA launches Netflix-integrated Hailstorm Hybrid program in partnership with Amlogic and Verimatrix

INNOPIA becomes the first Korean ODM partner of Hailstorm Hybrid program, together with Synaptics and NAGRA

Isotropic Systems Completes Bi-Directional Over-the-Air Satellite Tests

Flexera Applauded by Frost & Sullivan for Being a Leader in Software-Enforced Software Licensing

The French Tennis Federation (FFT) selects Wilson Sporting Goods as an Official Partner of Roland-Garros and of the FFT

TRACE Releases 2019 Bribery Risk Matrix, Launches Bribery Risk Typology

Zeus Unveils High-Ratio FluoroPEELZ® Clear Peelable Heat Shrink

Tealium Launches Private Cloud to Help Organizations Maintain Unparalleled Data Security in the Cloud

Silicon Wafer Area Shipments Fall for Fourth Consecutive Quarter

World Intellectual Property Report 2019 - Local Hotspots, Global Networks: Innovative Activity Is Increasingly Collaborative and International

Fresh Hops Sent to Korea For Brewing in Just One Day

Cloudleaf Commended by Frost & Sullivan for Transforming Supply Chain Visibility and Redefining the Way Enterprises Work

Allscripts Awarded the 2019 US Company of the Year Award for its Advanced RCM Services

Ascom Commended by Frost & Sullivan for Dominating the Enterprise Wireless Phone Market with 20 Percent of the Shipment Share

Eastman collaborates with NB Coatings to offer sustainable automotive plastic

Parallel Wireless Helps to Deliver on MTN's OpenRAN Vision across Africa

Godrej Locks to Commemorate 3rd Home Safety Day on 15th November

Siklu Announces the Terragraph Product Family

Merck Licenses CRISPR Gene-Editing Technology to Evotec

Global urology leader Advanced MedTech co-leads SonoMotion's US$10 million Series B fundraising

PeopleStrong Appoints Ex-Aon Hewitt CEO Sandeep Chaudhary as President

Neurovalens Unveils Modius SLEEP, a Genius Next-Gen Device Powered by Neuroscience to Optimize Sleep Health and Address the Global Sleep Crisis, Without Medication

Quectel Opens R&D Center in Belgrade to Expand Global Presence

Appointment of Deepak Malhotra as a Director on Azure Power Global's Board

FreedomPay Announces An Agreement With Marriott International For Commerce Technology Innovation

Xinhua Silk Road: Wetland city Changde hosts international marathon event

Xinhua Silk Road: NE China's Heilongjiang launches winter tourism roadshow in Beijing

Volkswagen Joins SEMI; Membership to Advance Automotive Electronics

A Call to Action on Advancing Cyberstability: Global Commission (GCSC) Launches Final Report

MSI Unveils the Complete Product Line up of the New 'Content Creation' Series in India

UST Global Acquires Contineo Health, a Leading Healthcare Technology Consulting Firm Specializing in EHR Optimization

Seclore and Safetica Join Forces to Automatically Detect, Protect and Track Sensitive Information the Last Mile

GCPL's BBLUNT Re-energizes Growth With a Keen Eye on E-commerce and New Innovations in Their Hair Care and Styling Range

Xinhua Silk Road: Chery's engine listed among China's top ten engines for 2019

New World Gold Council Survey Highlights Substantial Opportunities for Gold

ThoughtWorks Honored With Excellence in Gender Inclusivity Award by NASSCOM

2019 World Sensors Summit Unveiled - Zhengzhou Embraces Whole World

Vymo Wins Aditya Birla's Bizlabs Fintech Award for Mobile-first Personal Sales Assistant

SummitAI Sierra Brings Enhanced AI Capabilities to Flagship ITSM Solution

Xinhua Silk Road: Sensor industry projects flock to settle in Zhengzhou, C. China

Statement: Vision Impact Institute Supports Women in Japan Demanding Rights to Wear Glasses at Work

WeBank's Henry Ma on Digital Banks: Promote Financial Inclusion and Achieve a Sustainable Business

Teleperformance in India Recognised as Best Employer 2019

Habanos, S.A. Presents Its World Preview of the Romeo y Julieta Maravillas 8, an Exclusive Edition to Celebrate the Chinese New Year

Hitachi Chief Revenue Officer to Share Winning Digital Strategies at the Sales Team Accelerator Retreat: A Frost & Sullivan Executive MindXchange

Prepare Your Business for the Workplace of 2025: Top Trends Impacting Latin America

ATAI Life Sciences and Cyclica launch joint venture to revolutionize drug development for mental health disorders

Ribbon Deploys Colt Japan's Emergency Calling Service

The Second China International Import Expo concludes successful run

The Fifth Edition of Solaris - IIM Udaipur's Annual Management Fest Concludes on High Note

Embassy Office Parks REIT Announces Second Quarter FY 2019-20 Results; Reports Another Strong Quarter of Leasing and a Quarterly Distribution of Rs. 4,630 Million

Admissions 2020-21 Open at India's First Design University

'Right To Protein' Health Campaign Launched to Create Awareness About the Importance of Proteins in an Indian Diet

Jaquar Group's Mehra Family Joins the Forbes List of top 100 Billionaires of India

Jana Small Finance Bank Raises Rs 225 Crores Capital

2019 World Sensors Summit and Expo Held in Zhengzhou, China

Global Modular and Prefabricated Building Market Set for Robust CAGR of 6.3% from 2018 to 2025

TATA Projects Builds 1000-bed Hospital

Swascan Collaborates With Video Conferencing Provider to Proactively Address Software Vulnerability

Kavalan's Latest Bottle Features a Studded Crown Fit For a King

CreditMantri Wins the Prestigious Jason J. Spindler 'Big Data for Impact' Award and the Alphamundi Foundation Impact Finance Awards at UNDP-SDG Finance Geneva Summit in Oct, 2019

Executive Education Programs from Michigan State University Coming to India

We Lose 11 Years on Smart Devices: Singapore health tech company calculates the cost of screen time with this revolutionary tool

SK-II ARTIST SERIES: POWER OF PITERA

Indian Neo Banks are Democratising ERP and Financial Services for Underserved SMBs - Ezo Banks

JA Solar Supplies High-efficiency PERC Modules for a 32MW Solar-Plus-Storage Project in Hokkaido

SpeakIn Finds its Latest Investor in Aditya Ghosh, CEO South Asia OYO

The Opening Of Grand Final UniPin SEACA 2019

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Delhi polls: Full statehood demand may t...
India, US tri-services disaster relief e...
'Ops Kamal' may return, all 17 rebels to...
Prince Charles visits gurdwara, tries fl...
Religious bias led to IIT-M student's de...
Nadda to visit Uttarakhand on Nov 15, ho...
More...    
 
 Top Stories
India, at UNESCO meet, slams Pak ov... 
Trump cared more about Biden than U... 
Third edition of 'Make in Odisha' c... 
Mohammad Nabi to represent Kent Spi... 
Will Pucovski withdraws from Austra... 
Rajasthan: Seven dead, 12 injured a... 
India condemns Modi's fake letter t... 
Suhana Khan's pic from her play is ...