JUST five months after listing Cervantes Seafood Limited has posted a $1 million loss in its first half-yearly report.
The company, chaired by former State Liberal leader Barry MacKinnon, successful raised $5 million from the market last year but by December 31 the cash-in-hand had been reduced to $809,000. Earlier this month the company secured a further $1.7 million through a credit facility to improve its working capital position.
The company had revenue of just $2.5 million and expenses from ordinary activities of $3.5 million during the period to the end of December.
In an announcement to the Australian Stock Exchange, managing director Chen Hao blamed the combination of difficult trading and operational conditions on adversely affecting the company’s forecasted revenue and trading results.
A fire which ripped through the Cervantes township in December
also adversely interrupted the company’s activities for a week.
The results point toward final end of financial year results falling well short of the company’s forecasts laid out in the prospectus issued last year.
The company had forecast revenue of $24.79 million in the 2002-03 year and earnings before interest and tax, but after depreciation and amortisation, of $1.27 million.