Uncertainty for Windflow Technology

Last updated 12:14 14/03/2014

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Windflow Technology has posted a $2.8 million half-year loss.

This is almost 50 per cent higher than the previous half-year loss of $1.9m.

The embattled wind-turbine manufacturer said it had prepared its financial statement for the six months to December 31 on the basis of being a "going concern".

But there was a "significant element of uncertainty as the group's ability to remain a going concern is contingent on its being able to increase external revenue in its wind-turbine and licensing segments as well as raise funds for any further development activities in the United Kingdom".

At the end of December, the company's equity stood at a negative $2.2m. It was restored to positive equity by issuing $2.9m of preference shares in early January.

Revenue from turbine operations for the six months to December was $373,000, compared with the previous half of $837,000, as the company struggles to sell its wind turbines in its targeted British market.

Licensing revenue amounted to $641,000, compared with $168,000 the year before.

The company has made provisions this financial year for $1.6m of warranty costs over the turbines it supplied Te Rere Hau wind farm in Manawatu.

It said the number of turbines under warranty was 91 at the end of the half-year, and that would fall to zero by July 1 next year.

At the end of last year, the group had capital commitments of $570,000.

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- Fairfax Media

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