Only the negative NPAT might be considered a slight disappointment after their 18/10/18 forecast « achievement of net profit remains a target. »
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Only the negative NPAT might be considered a slight disappointment after their 18/10/18 forecast « achievement of net profit remains a target. »
Gosh only just saw this.......very impressive gains in all areas. Nothing to complain about there, in fact quite phenomenal growth all-in-all.
NZD (unless otherwise stated)
31 December 2018
2017 Change
Revenue $58.8m $43.3m +36%
Wellington Connect IoT Revenue $17.2m $10.3m +67%
ECR Motor Revenue $38.6m $30.3m +27%
Gross profit $14.3m $10.3m +38%
Gross margin % 24.3% 23.9% +1.6%
EBITDA1 $2.464m $0.538m +358%
Loss for the year ($0.713m) ($1.98m) 64%
Operating cash flows $1.849m $1.257m +$0.6m
I wonder if perhaps WDT is in a somewhat similar position to THL presently, with the market seemingly ambivalent about the value of each share? Both have a traditional market seemingly under some economic pressure presently perhaps due to world uncertainty (WDT = EC motors, THL = tourists dollars) and yet each also has a new-tech business that may or may not pay off well (WDT = IoT point of sale, THL = th2 user app). Both are trying to move their business with the times, and both (in my opinion) are very well managed and as illustrated by these changes. (Yes, obviously the two are very different in many other ways, this is just for the purposes of discussion.)
And like THL perhaps (as I read the THL shareholders anyway), I wonder if shareholders in WDT are uncertain exactly what the new technology boils down to and its impact on the company. I am certainly still trying to get a clear understanding about WDT's IoT, for instance. IoT (Internet of Things) is a broad market, whereas WDT has a specific corner of it in view.
The 2017 annual report, for instance, lists these (p3) and the following is my guess at a short description of each:
IoT hardware - the equipment in the coolers can talk via wireless for remote control and monitoring, a reason to buy WDT hardware
Proximity Technology - hardware/software which allows communicating with nearby user smartphones for promotion, another reason to buy WDT hardware
Smart Coolers - this is the IoT data services as far as I can tell (?), builds on that to provide reporting on everything to retailers and their suppliers?
iPX - the iProximity software, an app to allow retailers and suppliers to leverage all that to control and use all this for promotion?
Is that a fair description or am I misunderstanding? I'm not sure and certainly welcome other interpretations and correction.
Presumably reflecting the different outlooks of the two halves of the business, the latest 2018 result https://www.nzx.com/announcements/331370 said:
Of the motor sales : "With this as a backdrop, initial demand forecasts for EC motors from some major customers have been muted and are showing signs of being lower than 2018. "
Of IoT : "IoT demand forecasts continue to look robust, with this part of the business expecting continued full year revenue growth of around 30%. IoT is anticipated to contribute close to 41% of total revenues. Gross margin for the IoT business is expected to increase due to an improved product mix, and in part due to the expanding nature of higher margin data and software revenue."
Overall : "During 2019 Wellington will continue to focus on investment in new software development, customer-facing skills, new customer IoT programmes and expanding its ECR2 motor platform. Wellington will continue its revenue diversification strategy by broadening IoT growth beyond its historical carbonated soft drink beverage market focus and obtaining new customers for its ECR2 motor range.
"The company’s business mix is changing and is increasingly targeted to its higher margin IoT products. Accordingly, EBITDA1, Net Profit and operating cashflow are expected to be higher in 2019 when compared to 2018."
Just my personal thoughts. I own shares.
Hi SIMLA. I think the very basic takeaway from all this is that every arrow is pointing north for WDT and they seem to have a clear plan to further expand. I am left with nothing other than a feeling of confidence that this very well run company, producing environmental friendly products (see charts on website re emission reductions) will continue to go from strength to strength..........as demonstrated over the last few years. Happy holder.
Seems as though market is giving back all the gains from past few months.
Love this bit out of WDT Report
Over the past eighteen months Wellington has focused on improving its ‘execution-engine’ so that growth of the business would deliver the right financial performance for stakeholders. As stated previously, Wellington chose not to just ‘win volume to build scale’ until its ‘execution engine’ was working. This is called ‘earning the right to grow’. Wellington’s operating and financial performance continues to improve and the Board and Management are confident that all the appropriate actions are underway to improve the execution engine and deliver on financial promises. As result of this growing confidence, the focus is shifting to the actions and investments that will be necessary to return Wellington to a path of accelerated growth.
Thanks for pointing that out, Winner. That would appear to be significant. No, I'm not sure what it means either, but it pretty clearly implies that they have been up to something deliberate and are now going to try to leverage on that.
I must say, WDT is turning into an interesting company. They spent many years trying to sell the "better" motors without a great deal of success, and then the "new" guy (2011 new!) basically took the tack (as I read it) that buyers only bought on price and so WDT had to compete on technology AND price and has spent years getting the margins up to make the company competitive. Not only has this succeeded very well, but then the company has leveraged its technical prowess and opened another front with the IoT point of sales.
All of which is starting to work out very well, except that the world is getting to be a chilly place. So that comment you quoted is useful knowledge in that it implies they still think they have more gas in the tank.
I wish I had a crystal ball on where this is going. The management seem to be great, and WDT are in the right places (energy efficiency, IoT, point-of-sale marketing), and yet the times are turning tough generally if we believe the media. What a cliff hanger for investors! Great things around the corner? Maybe, maybe not! Possibly the big payoff for this company hangs somewhat on whether smartphone apps will continue to generate good revenue as/if the world economy tightens, as that is where the IoT payoff seems to lie?
Anyway, there is no doubt that this company gives things a go.
Winner, thanks for posting that. But I cannot find that text anywhere. Where did you find it please?
Sorry ....part of the post got lost when I tried to be the extract in italics. I’m sure I had ‘...from a year or so ago’ there.
Never mind ....it’s something that I remembered Greg Allen saying back then and I was wondering if they had at last ‘earned the right to grow’
I’ve been following Wellington since last century and you’d be amazed what I’ve collected on them over the years. I’ve had a few successful forays into them over the years but not recently.....you never know I might join you one day if they have earned that right to grow.
Thanks, Winner. Memory is a great asset too. However, that means we are not really a whole lot wiser what that means presently. Oh well.
Disappointing result year in year out trying to be profitable. What can I say a good management in a bad business that is sum up
A very tricky business to be in. Yes you have to give the management credit for what they have achieved.
I’ve yet to be convinced (over more than 20 years) that Wellington have ever had anything special or unique in their ever changing product / service portfolio
That to me is why they’ve never made money or are unlikely to make much going forward.
Well, I'm certainly not saying that WDT is, or is not, going anywhere - time will show that. But I think the current CEO agreed with you when he arrived (or so it seemed to me), which is why he changed the company to be totally customer-focused and is now going for profit based on being a good company to deal with on all fronts.
The electricity cost of running endless store freezers is hardly chickenfeed, which is WDT's first selling point. Now add in a strong customer support team, price competitiveness, and now extras like remote monitoring and promotion beacons. I'm guessing that smartphone in-store promotions are a big thing for the future, just as I'm guessing that THL's togo app is going to draw in a lot of revenue too. But nobody knows that and only time will tell.
But as to what WDT offers that is special? I would have said it was the total customer focus which has become their hallmark (to judge by the company reports). People love dealing with companies that are genuinely on their side. My view anyway. I never claim to be right.
Caution: The information on which this post is based is several years old and may no longer be correct.
The engine room of any refrigeration unit is the compressor. My understanding is the WDT refrigerator management package controls functions such as the air circulation fan and peripheral stuff but not the compressor motor.
The lack of any oversight of the compressor function is a weakness.
Boop boop de do
Marilyn
They were talking about high performance special things in this Annual Report
https://app.companiesoffice.govt.nz/...F6A74CD5868202
Not an encouraging news for holders.
https://www.nzx.com/announcements/332561
Sounds like they were already expecting this news and was already factored into their forecast. IMO moving away from low-profit high volume is a good move.
I wonder how big the order was that we missed out on and were there other tails which could have followed from it ?
Good progress reported and inching into profitability.
https://www.nzx.com/announcements/333158
Yep, it's becoming a nice turnaround story.
I like;
- A broad based International client and sales base.
- Not so reliant on selling just widgets (motors,) but increasing revenue from iot, data and recurring regular monthly revenue from smart devices.
- increased margins
- Not overstating the future. This comment by the CEO is both modest and v encouraging; " Our new business development funnel is very active; however due to the lead-time on hiring new growth-related skills we are prioritising existing customer growth projects. We do expect the first half of the year to be stronger than 2018 in both revenue and margin, with the second half still unclear and potentially weaker – hence we are maintaining previous guidance”.
Disc - Hold
........this good news story is just getting better and better. Greg Allen and his team are doing an exceptional job here with this turnaround. Guidance given right on the mark. Cautious optimism going forward. Products in line with global sustainability and environmental concerns. All boxes get the big tick and now profitability to add to the mix......what more could an investor ask for?? (dividend ahead maybe) Agree 30c /SPrice once instos wake up to this story.
Some dogs should just up and die and let investors put their funds to more worthy causes. WDT is such an animal. Decades of spluttering on with cash infusions at regular intervals. The only significant growth has been the number of shares issued which needs a logarithmic chart to display (oh, I forgot, they have achieved the same outcome by share consolidation every so often).
Is that why Superlife and Smartshares kept investing? I always did wonder why.
Don't hold back......let it all out.... best to get it all off your chest! lol.
I am a new investor. My view of this company is more forward looking based on much improved management, improved product mix, improved balance sheet and improved TA. Oh and don't forget whatsup's tax losses.
Still risky and not for all. DYOR.
Note that in the forecast accompanying the latest market update that has everyone so excited, they carefully avoided to predict a profit in 2019. "EBITDA, Net Profit and operating cashflow are expected to be higher in 2019 when compared to 2018." could still mean negative NPAT.
IMO it could be tax incurred and expensed in other territories and not able to be offset against NZ IRD.....but then I'm no CFO.
Of course. I like this cautious approach. Better to under promise and over deliver..... compare this to PEB!!
WDT meeting tomorrow, what are we expecting , anything exciting considering they achieved a pre tax profit of .2 mil their first.
Wow. A profit (hope it is a real one and not an accounting version). The first after 25 years or so. $200,000 - just hope the CEO and BOD do not want an increase because the profit will soon disappear, if so. No need to blame increased international component costs anymore, yippee.
Wdt softening a bit over the last couple of weeks with a dip under $0.2... prob need to give the market a bit of info to keep confidence up... how do we think this one is tracking?...
No need to worry with this one...solid very well run company.... indeed just a lack of news and SP drifts down. See it as a buy opportunity.😋
Maiden interim profit announced. Sounds like a capital raise on the way.
Good result today. Well done WDT.
Revenue for H1 2019 was $33.3m, a 19% increase over H1 2018. The company achieved an EBITDA1 surplus of $2.45m for the period, a 98% increase. EBIT was $1.27m ($0.31m last year) and the net profit was $0.72m, a $0.92m improvement on the prior year.
IoT increasingly in the news.
Economist 14 September - How the world will change as computers spread into everyday objects
These headings from Motley Fool 14 September
1. IoT devices will soon account for more than two-thirds of the AI chip market
2. 5G is accelerating IoT innovation
3. Companies are using new IoT devices to boost existing their existing businesses
http://www.fool.com/investing/2019/0...-mind-abo.aspx
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
Looking good going forward.
.......some seriously healthy gains made there...plus 179% in EBITA etc
Back to the bad old days , a C R of 1/5 @ .10, imho the current S P will slide now, money is to fund business opportunities , hmmm heard that before!
The previous $123m of cash punters have thrown in over the years haven’t produced much ....so another $5m odd is just a top up
Patience the key
......ill be in on this for sure 100%. Best prospects on the NZX..........right place, right time, all boxes ticked ready for lift off. (already begun) Amazing discount for existing shareholders and those raised funds should be returning 20-25% to the company in a year or sooner. Contracts already in place,...What could go wrong?
Anyone know whats happening??? Got this from ASB.
Order Purged and Cancelled
Order Details:
Your order has been purged and cancelled as WDTRJ.NZX has been suspended from trading by the NZX. Please review the company’s recent announcements on our website for more information.
Please feel free to review this and replace your order when the stock comes out of suspension.
If you have any queries regarding this matter, please contact our team on 0800 272 732 (option 2) or 0064 9 448 8120 from overseas.
Thanks winner, I thought they closed on the 25th.
No didn't get any as no one wanted to give them away which is quiet a surprise for this company.
Cheers
So the IoT is working ....an earnings upgrade
About time
http://nzx-prod-s7fsd7f98s.s3-websit...724/312472.pdf
I see the NZX shows the share price up 4% over last 52 weeks. That’s good
There was a recent Economist article on the IoT that predicted a trillion IoT items in the next few years. Don't recall the exact timeframe but it was sooner rather than later, 10 years maybe.
A trillion is a million billion (UK anyway which the Economist is) and world population is 8 billion. That is the IoT context. Someone will be making some very big bucks.
......indeed and WDT hasnt mucked around getting a piece of this IoT action.........all credit to the directors for quick feet. I firmly and genuinely believe WDT is on the cusp of some very big things (just like Blis) ......both companys have struggled for years but appear to be making real and sustainable gains into profitability, Good things have taken a long time but looks like wer'e knocking on that door (for both WDT and BLT) right now. Yes I hold both, yes Im still buying.
Blis and WDT must both be looking attractive takeover prospects. Sadly for NZX.
Let us forget about WDT and Blis comparisons of tax losses.
So many of us on here have been following these companies for decades. ( Have been investing and losing at times in a minor way ).
WHAT ARE THEY OFFERING THAT IS SO DIFFERENT TO WHAT THEY HAVE OFFERED BEFORE ?.
What are the real reasons why we should really be given any thoughts to invest in either one ?.
IOT. ( WDT ) Health Break through (BLIS ) . I understand that.. So do many other World wide companies.
Still waiting to be convinced ……..
AGAIN... :-))))))))
Rakon are into this IoT stuff as well. .... but are cool as doing 5G stuff as well
It wasn’t that long ago that WDT invented ta game changer in
SCS Connect which connected fridges to the cloud - that was cool stuff as well
Balance sheet looking better. New IoT customers on the horizon. Tempting stock. Huge gain since 2016 and arguably a bit of a dog for the past two years, but fundamentally improving. Added to the watchlist.
More good news.......top pick for me this year. Go you good thing!
good report, wonder if this means they wont release an update before the FY results though, because historically they release a financial update late Jan. This was a good alternative regardless.
After being on sidelines since last year, finally decided to get on board after watching their progress..
I'm surprised it is still going. I briefly had some shares early 2000 bought at 56c. Now they do IOT? Does it warrant for me to have another look or is it another false dawn?
Honestly their IoT side of business is looking pretty good. Obviously i'm just basing this on reports and no insider info. Sales growth yoy and margins improving. There was a drag down from old motors and hopefully that becomes a non-existent factor in due time.
Also they've hinted at an IoT contract with a company who already works with them.
One to watch IMO. Balance sheet is actually pretty good too (ignoring accumulated losses). If they can be profitable this year this will be a good one lol
Beagle me old mate — you into this one as well as Blis
Currently has all the same characteristics as Blis
To multi baggers at once maybe
..your'e onto it Winner. Throw Truscreen in the mix and go for the Trifecta like me. REAL hard earned money on all three...(just don't tell Balance please re Truscreen because we had words today LOL)
WDT is a long hold for me (this time) and making good gains IN IoT and sales generally.......paid 26c I think for some many years ago. Been in and out over the years. Should see 20c easy enough if SP continues steady as she goes.
I'm also a recent holder of this stock, as I think their business has started to turn a corner - a new generation product available at a time when customers/companies are just beginning to understand the power of IoT.
BUT I think the balance sheet risk is actually quite high. Debt levels are high (lets hear it for a low interest rate environment) and the mismatch between debtors/creditors is never something I like to see. I get the impression they launched IoT about 5 years too early for a market that wasn't ready for their 'big idea'.
Still, my small-ish stake represents a calculated risk. Hope that the mgmt team have their heads screwed on the right way!
Lucky Asia sales make up less than 10% of the total revenue stream.. so no impact from coronovirus. Nice little dip on low volume topped up.
Low volumes creating buying opportunities
hmmm, not a lot happening.
The growth from 2018 to 2019 looks promising though?
https://www.wdtl.com/wt9227
Until a solid financial news report is announced nothing will happen
One to watch this year IMO
Been following Wellington Drive since the turn of the century
Jeez they are one unlucky company
https://quoteapi.com/resources/da986...oranavirus.pdf
Out of their control. Shame the expansion might be delayed but it's not like they could have really done anything about this sadly..
arguably a buying opportunity...
IoT growth still there. Profitabilty projected in FY19.
IoT opportunities still exist and are still there. The impact here is not an organic issue with the company. Balance sheet will look stellar imo with FY19 full year release with 3 years of solid growth.
Disc to hold until the company organically deteriorates
Jeez 14 cents now
That announcement must have spooked a few
WDT always have bad luck.
Set back but report due soon .. everything’s down not selling lol
Pretty solid report. Not like you can trade this stock anyway with ASB and DB being broken.