25/02/2015 - 15:20

Atlas Pearls loses some shine in half-year report

25/02/2015 - 15:20

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A fall in pearl sizes has dragged down revenue for Atlas Pearls and Perfumes, with the company confirming a loss for the first half of the year flagged in a restructure last week.

Atlas Pearls loses some shine in half-year report
Atlas has said it anticipates that pearls will return to average size in the 2016 financial year.

A fall in pearl sizes has dragged down revenue for Atlas Pearls and Perfumes, with the company confirming a loss for the first half of the year flagged in a restructure last week.

It comes after the resignation of former executive chairman Stephen Birkbeck as part of the new strategy, when it also laxed plans for diversification.

The one-thrid fall in revenue to $6 million for the six months to December pushed EBITDA down to negative $1.5million, compared with $1.9 million in that period of 2013, while the net loss after tax was $7million.

This was down from a NPAT of $0.2 million, with fair value changes to the oyster stock dominating, the company said.

Despite strong demand for oysters, weight was down, the company said, and the percentage which could be sold was also lower.

Loose pearls were also predicted to be about 15 per cent smaller.

Newly minted chairman Geoff Newman said the board would focus on ensuring costs were kept down until pearl sizes were normalised.

“While we can’t control what nature delivers to us, rest assured that the management team has addressed the immediate issues at hand to ensure that the company moves forward in a positive direction,” Mr Newman said in a statement to shareholders.

“In a move to streamline and re-focus the business, the company has restructured its board positions.

“The decision is expected to create a realignment of skill sets.”

Atlas announced the partial sale of subsidiary Essential Oils Tasmania to Westwood Properties, with the company negotiating a partial advance of Westwood's cash payment, and its refocus on its pearling business, last week. 

Atlas fell 1.7 per cent to 5.9 cents per share at the close.

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