Amphibious boat designer and maker Sealegs is forecasting a slump in sales of between 14 percent and 40 percent this year.
The chairman James Hill told shareholders at the annual meeting in Auckland today that the company was projecting revenue for the financial year ending March 2010 to be in the range of $7 million to $10 million. This compares with $11.6 million in the financial year ended March 2009 when the company made a $5.8 million loss.
Hill said that the company had implemented actions to cut its operating costs as a result of the economic conditions and that these cuts have now placed the company at "fighting weight" and in a good operating position to deal with the current market. He said the company had made cuts but retained the ability to ramp back up as and when demand returned to the sales channel.
The company reported that sales for the quarter ending June 30th were $2.2 million with 20 boats shipped. At the end of the quarter the company had $2.9 million in cash reserves and had forward orders for 36 boats worth $3.3 million.
Sealegs chief executive David McKee Wright said that the company now has US Coast Guard compliance on all three of its amphibious boat models. "Ruggedised" versions of the Sealegs amphibious boats have been developed for rescue applications and current development projects included a 7.5-metre cabin boat and a three-wheel drive system.
Mr McKee Wright went on to say that sales prospects included the final stages of some multi-unit orders from international government departments which could lead to further follow-on sales.
Sealegs monthly amphibious boat production rates have been increased from budget to accommodate a slight increase in recent sales demand and to enable a plan to place consignment stock in key international boat dealer showrooms.
At the meeting, shareholders approved a new directors and employee share options scheme to replace one cancelled earlier this year.