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

 

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>