- Wellington Drive Technologies announced fourth quarter revenue of 2020 and witnessed an upward trend after the lull in the previous quarters.
- With the food and beverage industry having suffered in COVID times, the Company, as well as the industry is taking baby steps towards recovery.
- WDT 2020’s revenue stood at $36.9m, though lesser from the same period last year, is a steady step towards improvement soon.
On 28th of October 2020, the fourth quarter revenue of Wellington Drive Technologies Limited (NZX:WDT) was touted to hover around $10 million. As per the latest update, WDT’s 4Q 2020 revenue has been noted at $10.4 million.
This is a welcome change, a rise from the decline being faced in the second and third quarters, respectively. The Company is of the view that this growth may be reflective of people’s faith in the food and beverage industry returning to normalcy.
On 28 January Wellington Drive shares, at the time of writing were trading at NZ$0.10, rising by 3%.
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Wellington Drive’s 2020 Revenue compared to 2019
The revenue for 2020 was recorded ate $36.9m, which though is a sharp decline from the $61.7m noted in 2019, is still a beginning towards improvement. The massive decline in revenue from 2019 has been due to the effects of the pandemic.
The food and beverage industry has suffered greatly due to COVID-19. People have not been able to trust buying food from the outside for a very long time. Takeout and restaurant eating was completely banned, so was food in the hospitality and tourism businesses.
The quarterly revenue for 2020 compared with 2019 was as follows:
As on 31 December 2020, the cash for the business was recorded at $4.6m. There was a sum of $1.9m in the form of untouched debt facilities, which is enough to be utilised for operating requirements in the year 2021.
While the current trading result is under scrutiny it is expected to be released soon. On the 24th of February 2021, the final financial statements are going to be released post auditing.
Greg Allen the CEO of Wellington is happy with the ending results for the year 2020 and commends the substantial cash balance, as well as the reduced debts as a sign of recovering revenue in the near future. He further said that even though the Company is positive and hopeful about the results from the year 2021, there is a degree of caution that has to be maintained owing to the uncertainty that still persists in the world due to the pandemic.
The Road Ahead
Finding the perfect middle ground for the sake of planning and readiness for the future is important and that’s what the Company is going to do. With maintaining an appropriate cash flow, as well as supplying the demands of people being the top priorities, the Company plans to make its next moves strategically.
WDT would be unveiling 3 new products this year in IoT and Motor market. The Company would begin the initial volume of shipments as per its latest notification association with Imberia Cooling and would take initiatives to grow the Connect IoT array of solutions.
It is likely that the news developments would create prospects for providing further revenue streams for the Company this year, which would help in alleviating pandemic associated risks.