6th Jul 2015 08:34
LONDON (Alliance News) - Litebulb Group Ltd Monday called time on its acquisition-led growth strategy, with Chief Executive Simon McGivern and Sales Director James Phillips resigning and the company turning its focus to integrating its operating divisions and driving organic growth.
"There is never a good time to do this, but I feel that James Phillips and I have taken the business as far as we can and that now is the right time for someone new to take this on," McGivern said in a statement.
Litebulb shares were down 12% at 32.00 pence on Monday morning.
The branded product developer said that Howard Partington, the managing director of Concept Merchandise Ltd, a stationery and party products company acquired in November 2014, will be its interim chief executive. The search for a new CEO has begun.
McGivern, who had said as recently as May that Litebulb would continue its acquisition strategy, is stepping down following a series of purchases, including deals for Concept Merchandise in November 2014 and Go Entertainment Group Ltd in April of the same year.
On Monday, Litebulb said: "There is no intention of making further acquisitions in the short-term."
The company said that revenue for the first five months of 2015 amounted to GBP7.0 million, with a "strong response" from retailers to its new product ranges.
It has reviewed its full-year forecasts and the pipeline of orders underpinning them, deciding to take a "more conservative view on the timing and size of some of these and also to delay starting some projects whilst it focuses on cost reduction".
"The board is also aware that there are still significant cost savings to achieve in the group which were originally anticipated to occur earlier. As a result of this the board now expects the group to produce revenue growth of approximately 55% on last year which is lower than current market expectations," Litebulb said.
Litebulb said it is still on track to deliver its first positive earnings before interest, tax, depreciation and amortisation in 2015, compared with an EBITDA loss before exceptional items of GBP0.4 million in 2014.
By Samuel Agini; [email protected]; @samuelagini
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