Announcement

GENERAL: WDT: Wellington Drive Technologies upgrades 2019 guidance 09:09am 
WDT
22/11/2019 09:09
GENERAL
PRICE SENSITIVE
REL: 0909 HRS Wellington Drive Technologies Limited

GENERAL: WDT: Wellington Drive Technologies upgrades 2019 guidance

Wellington Drive Technologies (Wellington), a leading provider of Internet of
Things (IoT) solutions and energy efficient motors to the retail food and
beverage industry, today announced an upgrade of its earnings guidance for
the 2019 financial year.

Wellington has recently seen an increase in order take for its Connect SCS
and data services, its ECR2 motor and some legacy motors. This demand
increase is a result of increased cooler equipment demand from some beverage
brands and cooler manufacturers starting to position inventory in advance of
first quarter 2020. It should be noted that the company's December month can
be particularly volatile, with customers making order increase and deferral
decisions late in the month.

As a result of these recent order increases and somewhat stronger fourth
quarter demand, the company now expects revenue to be above the $58.8m
reported for 2018, versus previous guidance of revenue in line with 2018.
EBITDA is now expected to be in the range of $3.5m and $4.0m, versus previous
guidance of between $3.0m and $3.5m. The company expects to deliver a modest
pre-tax profit.

This guidance excludes any adjustment required as a result of the fair value
assessment of the contingent consideration liability in respect of the
iProximity acquisition.

Wellington announced its pro rata renounceable rights issue of new ordinary
shares ("Offer") on 25 October 2019. Wellington confirms, as at the date of
this announcement that, for the purposes of the Offer, it continues to be in
compliance with its "continuous disclosure" and "financial reporting
obligations", and that there is no information that is "excluded information"
as each of those terms are described in Wellington's cleansing notice dated
25 October 2019. Wellington notes that the Offer closes at 5pm NZT on 25
November.
End CA:00344724 For:WDT Type:GENERAL Time:2019-11-22 09:09:40

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