15th Jun 2007 14:31
Hot Tuna (International) plc15 June 2007 Press Release 15 June 2007 Hot Tuna (International) PLC ("Hot Tuna" or "the Group") Year-end Update Hot Tuna (International) PLC (AIM:HTT), a lifestyle apparel brand with authenticsurf heritage, announces the following update for the 12 month period ended 30June 2007. The current financial year ended 30 June 2007 is expected to produce resultsbelow market expectations with the loss for the year forecast to be between £3million and £3.2 million. This loss is attributable to the investment the Grouphas made into the re-launch of the Hot Tuna brand, including the acquisition ofthe licensing rights to the Hot Tuna brand in Australia, the design of theSpring / Summer 2007 range of apparel and the continued appointment of highlyexperienced executives to take Hot Tuna to the next stage of its development. The Group currently has approximately £2 million of cash resources and an equityline of credit of £2.5 million. The Board is confident that the Group hassufficient resources available to it to deliver upon its strategy. As previously announced, the Group's new CEO, Niels Juul, joined Hot Tuna on 1June 2007. Niels has been quick to utilise his previous valuable managementexperience, from his time spent at Von Dutch, in initiating a thorough review ofthe Group's business operations. It is the intention of both Niels and theBoard to streamline the Group in terms of overheads whilst, at the same time,focusing on generating revenues from Hot Tuna apparel. The Spring / Summer 2008 range has now been completed, with extensive input fromboth Niels Juul and Elle Macpherson. A priority for the Group has been toinitiate sales of Hot Tuna apparel. The Spring / Summer 2007 range has beensuccessful and the Group has received orders from retailers in all of Hot Tuna'skey target markets, including the UK, Australia and the US. These orders aresummarised below: Retailer Geographic locationFree Spirit UKExtreme Pie UKFluid UKTwo Seasons UKShore Watersports UKCult Clothing UKMyer AustraliaGlue Stores AustraliaSurf Vision AustraliaBeech Street AustraliaPacific Sunwear USJacks' Surfboards USYellow Rat Bastard USDiane Beachwear USCocoa Beach Surf Company US The apparel for the above orders has been manufactured in China, India and theUnited States and, the Group currently expects to report revenues ofapproximately £1.2 million for the 12 month period to 30 June 2007. Thisrevenue figure is derived solely from sales of the Spring /Summer 2007collection. Hot Tuna is also pleased to announce that it has recently secured orders fromDavid Jones, one of Australia's oldest and most prestigious department stores.David Jones, which operates 36 stores across Australia, has placed orders forthe Hot Tuna Spring / Summer 2007 range of boys clothing (8-16 years). Deliveryof the orders across all 36 stores will commence in July 2007. Further, to the announcement 12 April 2007 of the Group's success in securingorders for its boys range (8-16 years) for delivery from end of this month, theGroup is installing the first 2, of its 15 concepts stores, in Myer at the endof June 2007. The rest of the concept stores will be installed at the remainingdesignated Myer department stores by the end of August 2007. Commenting on the announcement, Ranjit Murugason, Executive Chairman of Hot Tuna(International) PLC, said: "Although it is frustrating to miss our targets forthe year ended 30 June 2007, I am nonetheless encouraged by current developmentsat Hot Tuna. The higher than forecast loss is solely due to the necessaryinvestment that had to be made to ensure that Hot Tuna is in a position attainits future aspirations. Our Spring / Summer 2008 range has now been finishedand we have already received strong feedback on our MAP brand for the Autumn /Winter 2007 collection. "Since joining the Board as Chief Executive on 1 June 2007, Niels Juul hasalready commenced to strip some costs out of the business and concentrate onincreasing the revenues. "We have made good progress with our Spring / Summer 2007 range, as demonstratedby today's announcement of our order from David Jones in Australia. Ourrelationship with David Jones will solidify Hot Tuna's position in theAustralian market which is one of the Group's core geographical territories.The fact that Hot Tuna products have now entered Australia's two most importantdepartment stores is a testament to the resurgence of the Hot Tuna brand in itsheritage market." - Ends - For further information:Hot Tuna (International) PLCRanjit Murugason, Chairman Tel: +44 (0) 20 7372 [email protected] Seymour Pierce LimitedSarah Wharry Tel: +44 (0) 20 7107 [email protected] www.seymourpierce.com Media enquiries:AbchurchHenry Harrison-Topham / Chris Lane Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Notes to Editors Hot Tuna International PLC (AIM:HTT) owns the rights to the Hot Tuna brand, aprogenitor of global youth fashion, born in Australia with a heritage ofauthentic surf culture. Hot Tuna is one of the world's most iconic names in surf lifestyle and can traceits roots back to 1969 when it was founded by a surfer and his fashion designerwife. Though the label had not been actively marketed over for the lastdecade, it retained an organic cult status among core action sports enthusiasts. In June 2005, Hot Tuna International PLC purchased the 'Hot Tuna' brand fromFrontier International (Holdings) Pty Ltd, listed on AIM in September 2005, andhas since started to aggressively market the brand and reinvigorate thebusiness. The Company now owns all intellectual property rights to its name andrelated iconography, and has put in place key management drawn from theexecutive ranks of Quiksilver, O'Neill and Ocean Pacific, among others. Headquartered in the UK, Hot Tuna operates design, marketing and distributionhubs in the USA, Australia and the UK. In its core markets, Hot Tuna sellsproducts, which are directly manufactured in facilities in North America, Europeand in China. Hot Tuna offices are maintained in Sydney, Los Angeles and London. For moreinformation, visit www.hottunaplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Concha