Story image

Windflow narrows 1H loss, says new financing needed

13 Mar 2015

Windflow Technology, the unprofitable wind turbine manufacturer, narrowed its first-half loss but says it will need to borrow from its shareholders and find new financing to remain a going concern.

The Christchurch-based company reported a loss of $2.3 million in the six months ended Dec. 31, compared to a loss of $2.8 million a year earlier, it said in a statement. Operating revenue rose 88 percent to $700,000 while costs of sales increased 51 percent to $783,000.

As at Dec. 31, the company had equity of $1.8 million, and said there is a "significant element of uncertainty to the group's ability to remain a going concern". Its future is contingent on a mix of factors, including being able to access its shareholder loan facility and further equity injections from new or existing shareholders, further sales in the UK and other markets, new finances for more development projects, and secure a new licensee of the group's technology.

"Depending on progress with growing revenue from its various activities (licensing, engineering services, turbine sales, turbine project developments and electricity sales), the directors may or may not carry out further capital raising in 2015," the report said. "Windflow has made some progress and passed positive milestones in the half-year to 31 December 2014, albeit with some delays."

The company believes it will eventually get the traction it has sought in the UK for small-scale installations of its turbines under a British government-assisted scheme that offers a guaranteed price for electricity sold back into the UK national grid for a 20-year period. Windflow installed three turbines in late 2014, but further projects have been delayed because due a withdrawn planning process and a production gap for its turbines.

In the six-month period, growth in Scotland was offset by a setback in Texas when a customer ditched plans to enter the wind business and cancelled orders from Windflow, it said in its interim report.

In January, Windflow said it will reduce staff numbers as it focuses on the UK market for sales of its wind turbines. The company shifted its focus away from New Zealand, where oversupply of electricity has sapped demand and investment in renewable technology. Today's report says it has made six staff redundant as it restructures to cut costs, to arrest delays in finalising sales.

Shares of Windflow were unchanged at 6 cents on the New Zealand Alternative Index.

Security flaw in Xiaomi electric scooters could have deadly consequences
An attacker could target a rider, and then cause the scooter to suddenly brake or accelerate.
Four ways the technology landscape will change in 2019
Until now, organisations have only spoken about innovative technologies somewhat theoretically. This has left people without a solid understanding of how they will ultimately manifest in our work and personal lives.
IDC: Top 10 trends for NZ’s digital transformation
The CDO title is declining, 40% of us will be working with bots, the Net Promoter Score will be key to success, and more.
Kiwi partner named in HubSpot’s global top five
Hype & Dexter is an Auckland-based agency that specialises in providing organisations with marketing automation solutions.
Moustache Republic expands Aussie presence with new exec
The Kiwi digital commerce partner has appointed a Sydney-based director to oversee the expansion of the company’s Australian footprint.
Epson’s new EcoTank range with two years printing per tank
With 11 new EcoTank printers that give an average user two years of printing and cost just $17.99/colour to refill, Epson is ready to change the game.
Te reo Māori goes global via language app called Drops
If you’re keen to learn a few words of Māori – or as much as 90% of the language, you may want to check out an Android and iOS app called Drops.
Reckon Group announces a steady profit in 2018
Reckon continued its investment in growth throughout the year with a development spend of $14.3 million.