30th Dec 2019 08:40
(Alliance News) - BigDish PLC said Monday that rising expenses and impairment costs led to a widened half-year loss, the operator of the eponymous discount dining platform said.
Shares in the company were 25% lower at 1.13 pence each in London in on Monday morning.
In the six months to September 30, firm's pretax loss widened to GBP1.1 million from GBP388,244 in the period to June 30, 2018. In April this year, the company announced it would change its year-end date to March 31.
Administrative expenses more than doubled to GBP735,077 from GBP235,423. BigDish also booked an impairment loss of GBP396,277, against none in the first-half of last year.
Revenue quadrupled but remained insignificant at GBP11,766. In the first six months of last year, BigDish posted revenue of GBP2,448.
The company added that it is fully funded until the third quarter of 2020 and ruled out any equity fundraising before July 2020.
Chief Executive Officer Tom Sumner said: "Since joining BigDish on December 2, we have been able to streamline operations and reduce cash burn significantly in order to improve and be more effective as a business in 2020.
"We have sufficient funding runway in order to increase the pace of restaurant acquisition which is the key performance indicator for the year ahead."
Like last year, BigDish paid no interim dividend.
Recent months have seen significant changes for the firm, both at a board and operational level.
Sanj Naha, the firm's former chief executive, moved to a consultant role following Sumner's appointment as CEO earlier in December.
New CEO Sumner, whose appointment was announced in November, is charged with driving the firm's shift to a more cost-effective telesales based business model.
BigDish's previous business model saw it employ nine territory managers for regions in the UK such as Birmingham, Reading and Brighton.
Now, the company's marketing drive will be fronted by a telesales team, with just two of the nine territory managers escaping the axe.
Sumner previously managed telesales teams at Gourmet Society and Tastecard, two brands operated by The Dining Club Group. Each brand partners with over 6,000 restaurants and provides users with a discount card for various dining chains.
BigDish said at the time: "Rather than 'boots on the ground', the company, led by Tom Sumner, will launch a telesales operation in Manchester on December 2 as its prime strategic initiative for restaurant acquisition.
"It is my expectation that 2020 will be a turnaround story for BigDish and our shareholders," Sumner said Monday.
By Eric Cunha; [email protected]
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