2 Mar 2015

Wellington Drive reports $4.5m loss

1:54 pm on 2 March 2015

Wellington Drive has reported a full year loss of $4.5 million - $700,000 more than it lost the year earlier.

Sales fell 35 percent to $17.8 million in the 12 months to the end of December, which it attributes to weak sales in Latin America, more than offsetting a 20 percent increase in Europe and Asia.

The energy-efficient motors manufacturer says 2014 sales have been disappointing, but it had turned a profit in January, representing a promising start to 2015.

Chief executive of Wellington Drive Greg Allen said falling demand in Latin America has delayed its strategy to turn the business around.

"We didn't lose any customers in that region, but we lost some sales because of that market weakness," Mr Allen said.

However, he said there were signs that Latin America was turning around.

Mr Allen said customers were excited about the new product offerings, and the company had orders waiting to be filled.

But, Mr Allen said Wellington Drive needed more money to launch new products and execute a growth recovery plan.

It was launching a fully underwritten, $3 million rights issue, which offers shareholders five new shares for every six they already own at 3 cents each.

The issue, which will close in April, was fully underwritten by a major shareholder, SuperLife, which will see its stake increase to more than 20 percent.