Windflow down to 4.8 employees - minus founder Henderson

Wednesday, 27 September 2017

Te Rere Hau Windfarm in the Tararua Ranges.

Geoff Henderson, the founder of twin blade electricity wind turbine company Windflow Technology will resign as chief executive as the company winds down operations.

Christchurch-based Henderson said he will remain a director and will be available to in a consulting role in 2018, 'depending on the future plans of around business development, capital raising and licensing of intellectual property'.

In 2006 Windflow held future promise - founder Geoff Henderson was flanked by then Prime Minister Helen Clark and chairman of NZ Windfarms Derek Walker.

His departure from active management marks 17 years since the company was set up.

But his legacy continues in NZ Windfarms which bought and operates 96 Windflow turbines on the Tararua Ranges.

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NZ Windfarms chief executive John Worth said he wished Henderson well and his work was not be belittled as evidenced by improved performance at his company's Te Rere Hau windfarm after a restructure and efficiency improvements.

Worth said the turbines were robust and well suited to New Zealand's windy conditions.

Over the years Henderson has proved tenacious and dogged in the promotion of his twin blade turbine against international rivals with multi-million dollar budgets.

Windflow listed on the New Zealand Stock Exchange in 2003 with shareholder support by some leading names in the alternative energy sector including former Green Party leader at the time Jeanette Fitzsimons.

But it proved impossible to break into the market in a big way, aside from establishment of NZ Windfarms, an unrelated company in terms of shareholders or management, although several of its engineers came from Windflow.

Two weeks ago Windflow released its annual report including the announcement that the decision has been taken to close the factory in Christchurch.

The company has trimmed full time equivalent staff numbers from 14.4 to 4.8 who will continue to support the operation of Windflow turbines installed in the UK and any other revenue-generating activities, such as supporting a US prototype Class 2 turbine in Texas.

Windflow also has potential to market its patented synchronous generators, which help manage electricity surges on the grid.

'Transmission operators in places like South Australia, Ireland, north-western China and Germany are becoming concerned about the lack of stability that synchronous generators provide.

'There's reason for optimism the synchronous power-train may be an idea whose time has come,' Henderson said.

He will vacate the chief executive role at the end of December and the company will continue as a going concern with a small engineering team helping support the UK turbines.

Windflow owns eight turbines in the UK, and six of them will be sold to shareholder David Iles in exchange for a $23 million debt to him.

This will restructure the balance sheet to give it positive equity.

For the year ended June 2017 Windflow earned revenue of $1.7 million. After overheads and finance costs it posted a $4.3m loss. The shares last traded at 1.3 cents a share.