Windsor and Coromals still on sale
Fleetwood pledges $4m
to meet Windsor and
Coromal warranty claims
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FLEETWOOD Corporation has pledged $4
million to meet any future warranty costs for Windsor and Coromal caravans
built at its WA factory.
The ASX-listed company off-loaded its caravan manufacturing business last
after shareholders complained of massive losses.
It was snapped up by Apollo for $1 million and the global company now
manufactures the caravans under their same brand names
at its factory in Brisbane.
Fleetwood has announced that apart from
warranties, its remaining commitments to dealers who sold its WA-built RVs
had now been fulfilled.
"A provision of $4m will be made in 2019 in respect of the expected
warranty costs," it said.
As part of the sale process to Apollo, Fleetwood had retained some
"These have been placed in dealerships in Brisbane and Melbourne on a
consignment basis. Cash will be realised from these assets," it said.
The company had also retained some raw materials
plus plant and machinery after the sale.
Fleetwood added that an impairment charge of $8 million would be made
against the carrying value of these assets in the 2019 financial year to
reflect their recoverable amounts.
Its net cash balance at the end of last month was $33 million,
the company said.
This compared to a cash balance of $16.3 million at the end of December
last year and the March 4 stock exchange announcement that it expected to
receive $11.2 million in cash as a result of the
second completion of the caravan business sale to Apollo.
"The full transition period for the caravan manufacturing business will
determine the final value Fleetwood receives from the exit," it said.
"But in cash terms the sale is ultimately expected to be positive due to
the recovery of good will, raw materials, finished goods and utilisation
of tax losses."