Windflow in “sound financial position”

17 Marts 2006

In releasing the company’s half-year report, the Directors of Windflow Technology Limited have noted that the company is in a sound financial position with no risk of a cash shortfall prior to completing and installing its first batch of wind turbines. These will be installed under a sale and purchase agreement with NZ Windfarms Limited for up to 97 turbines for the Te Rere Hau wind farm in Palmerston North. Progress payments for that first batch have marked the move of the company from prototyping to commercial production.

During the six-month period, NZ Windfarms Limited, a subsidiary of Windflow Technology, completed a share issue. As a result Windflow Technology now owns 43.07% of the total shares issued by NZ Windfarms, and NZ Windfarms is no longer a subsidiary but an Associate Company within the Group.

The costs associated with rebuilding the prototype, after it was damaged in an extreme wind shift event in March 2005, were substantially reduced by an insurance payment for that event.

The Directors reported that a challenging calendar year finished on a good note with the prototype fully operational, its noise compliance confirmed by the Banks Peninsula District Council, and the turbine achieving availability between 97 and 100%. They believe that the global and local outlook for the Company continues to strengthen as climate change policies strengthen worldwide, and demand for wind turbines is exceeding supply, driving turbine prices up.

The Company intends to complete the first batch of turbines, install them at Te Rere Hau, complete the testing, engineering and international certification work on the Gebbies Pass turbine, and continue a range of commercialisation activities so that it can play an increasing role in delivering environmentally and economically sustainable wind power.

ENDS
Further information: Tim Armitage tim@armi.co.nz Phone 03 365 8960