Wellington Drive revenue for Q318 increased 62%

Wellington Drive revenue for Q318 increased 62% and EBITDA improved by $1m. FY18 guidance maintained.

Wellington Drive (NZX:WDT) achieved a significant improvement for the 3rd quarter ended 30th September 2018 (Q318) when compared to same period in 2017. With a growing order book going into the fourth quarter, Wellington also maintains its guidance for FY18.

Q3 2018 Highlights:
• Revenue for Q318 was $12.6m, compared to $7.8m for the same period in 2017; a 62% improvement. Earnings before interest, taxation, depreciation, amortisation and impairment (EBITDA) for the quarter was a profit of $22k, an almost $1m improvement over the loss of $943k in Q317;
• For the nine months to 30th September 2018 revenue was at $40.7m, a 29% increase compared to the same period in 2017. Year to date EBITDA is $1.1m compared to $0.1m for the same period last year;
• Continued growth in the quarter from the Wellington Connect SCS (previously referred to as SCS Connect) with YTD volumes increasing by 73%. The energy efficient ECR2 motor YTD volumes increased 55% year over year and ECR01 and ECR82 YTD motor volumes were consistent with the same period last year;
• Completed the acquisition of iProximity on 2nd July 2018, paying A$1.1m on settlement. iProximity’s marketing system is already integrated into the Wellington Connect SCS platform, is supporting sales and contributing to field trials of proximity-based marketing outside of the beverage market;
• A product partnership announced with New Zealand refrigeration manufacturer SKOPE Industries, with SKOPE choosing the Wellington Connect SCS and EC motor products as key components in its market-leading ActiveCore Glass Door Display refrigerator range;
• A $2.5m debt facility secured from Onimeg Investments to finance the repayment of the Smartshares $2m loan and to provide additional working capital flexibility. $1.5m was repaid in September and the remaining balance is payable in March 2019; and
• Cash as at 30 September was $3.7m and net debt at that date was $0.5m.

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