WELLINGTON DRIVE TECHNOLOGIES LIMITED
Interim Report - 31 December 1997
DirectorsÂ’ Report
The loss for the six months to 31 December 1997 of $668,000 was disappointing. The major portion of the loss stems from Wellington Electric (53% owned US subsidiary) which has been having difficulty obtaining a consistent order flow to enable it to trade profitably, while at the same time continuing to invest heavily in the development of the Wellington brushless motor.
The Board of Directors has resolved to take the following initiatives to control expenditure and speed up progress:
During the last six months a number of positive developments have occurred:
Good progress continues to be made, although the Directors' view is that the Group is in need of some restructuring to enable a more speedy commercialisation of the technology. Further communication with shareholders will be provided following resolution of the restructuring.
Dr R.J. Thomson
Chairman
10 March 1998
Consolidated Statement of Financial Performance
for the six months ended 31 December 1997
Six months ended |
Year ended |
|||||
1997 |
1996 |
1997 |
||||
Operating Revenue |
||||||
Product sales, & fees |
207 |
156 |
264 |
|||
Royalty income |
15 |
41 |
95 |
|||
Interest income |
24 |
31 |
67 |
|||
Exchange gains |
109 |
- |
2 |
|||
Total operating revenue |
$355 |
$228 |
$428 |
|||
Net Deficit before taxation |
(695) |
(326) |
(618) |
|||
Less taxation expense |
- |
- |
- |
|||
Net Deficit after taxation |
(695) |
(326) |
(618) |
|||
Share of deficits of associate entities after tax |
|
|
|
|||
Minority interest in deficit of subsidiaries |
|
|
|
|||
Group Deficit attributable to the shareholders of the parent company |
|
|
|
Consolidated Statement of Movements in Equity
Equity at 1 July |
953 |
577 |
577 |
||
Net deficit for period |
(668) |
(397) |
(877) |
||
Increases in paid up capital |
900 |
1,373 |
1,373 |
||
Movement in minority interest |
(12) |
47 |
(4) |
||
Movement in associate company reserves |
- |
(154) |
(154) |
||
Movements in foreign currency translation reserve |
|
|
|
||
Equity at 31 December 1997 |
$1,129 |
$1,465 |
$953 |
Consolidated Statement of Financial Position
as at 31 December 1997
As at |
As at |
|||||
1997 |
1996 |
1997 |
||||
Non Current Assets |
||||||
Fixed assets |
815 |
752 |
747 |
|||
Goodwill on consolidation |
227 |
111 |
253 |
|||
1,042 |
863 |
1,000 |
||||
Current Assets |
||||||
Cash on hand & at bank |
51 |
25 |
21 |
|||
Bank call/short term deposits |
738 |
1,181 |
681 |
|||
Receivables & tax |
128 |
164 |
64 |
|||
Inventories |
253 |
328 |
205 |
|||
1,170 |
1,698 |
971 |
||||
Total assets |
$2,212 |
$2,561 |
$1,971 |
|||
ShareholdersÂ’ Equity |
||||||
45,170,361 (12/96 & 7/97 - 42,170,361) |
||||||
fully paid ordinary shares |
6,908 |
6,008 |
6,008 |
|||
Accumulated deficit |
(5,736) |
(4,589) |
(5,068) |
|||
Foreign currency translation reserve |
(43) |
(17) |
1 |
|||
Minority interest |
- |
63 |
12 |
|||
1,129 |
1,465 |
953 |
||||
Non Current Liabilities |
277 |
806 |
723 |
|||
Current Liabilities |
||||||
Accounts payable & accruals |
119 |
133 |
106 |
|||
Current portion of term liabilities |
687 |
157 |
189 |
|||
806 |
290 |
295 |
||||
Total funds employed |
$2,212 |
$2,561 |
$1,971 |
There has been no change in accounting policies, which have been applied on the bases consistent with the previous year.
Consolidated Statement of Cash Flows
for the six months ended 31 December 1997
Six months ended |
Year ended |
|||||
1997 |
1996 |
1997 |
||||
Operating cash flows: |
||||||
Cash was provided from |
207 |
196 |
408 |
|||
Cash was applied to |
(988) |
(590) |
(899) |
|||
(781) |
(394) |
(491) |
||||
Investing cash flows: |
||||||
Cash was provided from |
- |
501 |
- |
|||
Cash was applied to |
(19) |
(429) |
(324) |
|||
(19) |
72 |
(324) |
||||
Financing cash flows: |
||||||
Cash from share issues |
900 |
1,379 |
1,379 |
|||
Settlement of term debt |
(99) |
(23) |
(44) |
|||
801 |
1,356 |
1,335 |
||||
Net increase/(decrease) in cash held |
1 |
1,034 |
520 |
|||
Cash at beginning of period |
702 |
172 |
172 |
|||
Effect of exchange rate changes |
86 |
- |
10 |
|||
Cash at end of period |
$789 |
$1,206 |
$702 |
Reconciliation of Net Surplus to
Operating Cash Flows
Reported net deficit after tax |
(695) |
(326) |
(618) |
||
Add non cash items: |
|||||
Depreciation/loss on disposal |
69 |
24 |
33 |
||
Amortisation of goodwill |
26 |
10 |
35 |
||
Unrealised exchange gains |
(82) |
5 |
(1) |
||
Add/(Less) working capital movements: |
|||||
Receivables & tax |
(63) |
(31) |
(11) |
||
Inventories |
(48) |
(36) |
48 |
||
Accounts payable & accruals |
12 |
(40) |
23 |
||
Net operating cash flows |
($781) |
($394) |
($491) |
These half year accounts have not been audited.