Sunday, August 30, 2015

Martin Aircraft reports annual $5.2m loss

Jetpack company Martin Aircraft has reported an annual net loss to $5.2 million, as it invests and continues to work on commercializing its flying machines.

The company, listed on the Australian sharemarket, has formed a joint venture with its Chinese cornerstone shareholders KuangChi Science. It has not declared a dividend in the financial year to June 30.

The net loss compared to a $922,000 net loss in the three months to June 30, 2014.

The development company had increased its workforce to 43 by financial year end.

It has undergone a number of significant changes amongst its management and board members.

Martin Aircraft chief executive Peter Coker, who joined the board in October 2014, announced earlier this month that KuangChi Science would develop the facility in China in which to build the jetpacks.

The company had the capability at a Wigram facility in Christchurch to build up to 500 jetpacks a year and that business model would be replicated in China.

Martin Aircraft's target market is "first responders" like police, ambulance and emergency services and the military, commercial uses including agriculture, and personal use.

The flying machine was initially conceived and developed by South Islander Glenn Martin from 1981. Martin resigned from the board on June 2.

Martin was a biochemist, and previously a university student when he began designing his dream jetpack in the early 1980s.

Martin, who chose to move to Christchurch from Dunedin to pursue his "personal jetpack" dream, said at the time the resignation was a personal decision driven by factors including corporate demands such as complying with advice from lawyers on what he said in public.

His reason for founding the company had been to supply himself with a personal jetpack, and he had left Martin Aircraft without achieving that dream.

He no longer has an involvement in running the company. The financial statements show that Martin is he third largest shareholder with a 15.61 percent stake. KuangChi Science has a 22.7 percent stake and No.8 Ventures has a 19.1 percent stake.

The 12th prototype Martin Jetpack has a V4, 200-horsepower engine that drives two ducted fans. Able to lift 105 kilograms, it has been flown to more than 3000 feet but not manned by a pilot.

The vast majority of Cantabrians have never seen one at work.

Based on the latest testing the jetpack will have the capability to fly for over 30 minutes at a speed of up to 74 kilometres and hour and an altitude up to 1000 metres, the company has said.

Late year and this year Martin Aircraft has undertaken a series of capital raisings including from high-net worth investors for developing its "jetpack" flying machine. The company listed in November.

At balance date the company had net assets of $25.8m, exceeding $22.5m of liabilities at that point.

Original article can be found here:  http://www.stuff.co.nz

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