Leading turbine manufacturer, Windflow Technology Ltd, reported a loss of $1.23 million, on account of delayed payments and non-payments by its various customers.
The company holds a cash deposit of $11.727m and has no long term liabilities by the balance date. Winflow, however, reported increase in revenue which stood at $29.522m, as compared to $10.991m in the same period last year.
The company said that its main customer, NZ Windfarms Ltd, has delayed its payments for the order it had placed using some contractual provisions of the deal. Windflow said in a statement: "If NZ Windfarms were to continue to withhold payments, and then Windflow could have major cash flow issues."
NZ Windfarms placed orders to purchase 32 turbines for its Te Rere Hau wind utility in September last year. However, both firms are in dispute over lack of IEC certification, which has been adding unnecessary delay both in the implementation of its project and payments.
Winflow is now said to have resolved all issues pertaining to IEC Type Certification which are reportedly under the review of Lloyds Register.