Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

SeaDragon flags 'extremely disappointing' increase in loss

SeaDragon flags 'extremely disappointing' increase in forecast FY loss


By Pattrick Smellie

Nov. 9 (BusinessDesk) - Perpetual under-performer SeaDragon is warning its full-year operating loss could be more than double the guidance it gave in June as it struggles to meet new European product certification requirements for refined tuna oil used in infant formula.

"It is extremely disappointing that we continue to face significant complex certification and production specification issues across our supply chain," chairman Colin Groves said in a statement to the NZX. "Although we have overcome many issues the fact remains that we are not in a position to satisfy the global demand into this region."

Normalised earnings before interest, tax, depreciation and amortisation for the March year are now forecast to show an operating loss of between $4.8 million and $5 million, compared with $2 million to $2.8 million loss range given in guidance on June 8.

Revenue of between $6 million and $6.9 million is now forecast for the full year, compared with June guidance of $10 million and $14 million.

The loss before tax, previously flagged at between $3.6 million and $4.55 million, is now forecast at between $6.4 million and $6.6 million.

For the half-year to Sept 30, which the company will formally announce later this month, a normalised ebitda loss of $2.5 million is anticipated, compared to a $2.2 million loss a year earlier. Losses before tax will widen to $3.4 million, from $2.7 million last year, after revenue declined to $2.3 million from $2.4 million a year earlier.

Chief executive Nevin Amos said the European market access problems stem from regulatory and customer specification changes, which were "impacting all companies globally seeking access to the European market for infant formula".

The company was now reassessing its short-term business plan with a view to offering its Omega-3 oil processing facilities for use on a toll processing basis for "significant volumes of oil".

The company announced in June that it had negotiated $6 million of new funding from cornerstone shareholders BioScience Managers, Pescado Holdings, and Comvita. An independent valuation in July concluded the funding arrangements were unfair to non-associated shareholders but that the positives outweighed the negatives. In August, it announced a $14.9 million renounceable rights offer in which shareholders were invited to participate at a 10 percent premium.

SeaDragon's infrequently traded shares closed at two-tenths of a cent yesterday. The company listed on the NZX in October 2012 via reverse takeover undertaken by Claridge Capital, with the shares initially trading at 2.2 cents apiece.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: