Windflow in Strong Position
7 November 2008
Against the background of extremely turbulent equity markets Windflow Technology Ltd, the manufacturer of mid-sized wind turbines, is “in great shape,” the chairman Mr Barrie Leay told the company’s annual meeting at Christchurch.
“It has been a year when we have achieved significant milestones,” Mr Leay said.
“Our share price has shown relative stability whilst many company share prices have halved and we are in the strongest financial position in our history with cash in the bank of around $23m, no debt and an order book for a year ahead.”
“We are now concentrating on achieving profitability.”
In an address prefaced by observations that the forthcoming administration of President-elect Barack Obama could usher in a 21st century transition to new energy sources, Mr Leay also noted the challenges that lie ahead for the New Zealand economy.
Over the past year, however, Windflow had completed the second phase of its capital raising with the September exercise of options and it had secured Mighty River Power Ltd as a cornerstone 19.95% shareholder. These moves had proven to be “extremely timely” as the market crisis developed.
The Te Rere Hau joint venture has also paid Windflow a significant deposit on a further order of 32 turbines for their Palmerston North wind farm.
Windflow has prepared foundations at Te Rere Hau for 60 turbines of the 97 now ordered and 13 turbines have been installed, with connection to the electricity network.
Mr Leay said Windflow looked to complete the IEC certification process which would position Windflow turbines at the highest possible world standard. It would also aim to managing a manufacturing capability and supply chain that supports manufacturing excellence.
The past year had seen the transformation of Windflow from a small research and development company to a fully fledged manufacturer, said the chief executive Mr Geoff Henderson.
He said that opportunities for potential new orders for which resource consents were either being prepared or about to be heard totalled a further 183 turbines. If all were successful Windflow would have an order pipeline of around 275 turbines.
These include the proposed Long Gully wind farm that Windflow is contracted to build for Mighty River Power, subject to consent, near Wellington. Public consultation on the project is taking place this month.
For Further Information Please Contact:
Mr Geoff Henderson,
Windflow Technology Ltd
Tel 03 365 8960
Mr Warren Head,
Head Consultants Ltd
Tel (03) 3650 344
Mobile (021) 340 650