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Hot Tuna International

BY: Andrew Hore |
POSTED: 30/12/2011 |
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Hot Tuna international, which plans to sell the eponymous surf wear brand and turn itself into a shell, reduced its loss last year even though revenues more than halved.

In the year to June 2011, revenues fell from £464,000 to £207,000 while the loss declined from £1.31m to £768,000. There was a sharp fall in the cost base. Hot Tuna is winding down its US operations even though it generated £86,000 of last year’s revenues. The US was the only region to increase its revenues last year but it is a highly competitive market. The figures were flattered by a £93,000 write-back of a provision for US creditors.

There was a cash outflow from operations of £940,000 but there was still £678,000 in the bank. This will have fallen since then but the sale of the operations should bring in some cash – although it may be a relatively modest amount.

There are three preferred parties for the purchase of the Hot Tuna brand and the company’s assets and liabilities. They are undertaking due diligence.

At 0.075p a share, down 0.042p, Hot Tuna is valued at £1.66m. The share price is still higher than when Hot Tuna said it was going to turn itself into a shell.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2011_27.pdf