Interim Report for the period ending 31 December 2008
30 March 2009
Highlights
- Sales increase of 39%;
- Operational loss reduced by 59% to £679,000;
- Debenhams increased the number of stores in which it stocks product from 5 to 45;
- Benefits from cost reductions in 2008 now starting to come through;
- Australian market still performing strongly
Hot Tuna (International) Plc (AIM: HTT), a leading surf wear and fashion brand, presents its consolidated results for the half year ending 31 December 2008.
In spite of an extremely challenging trading environment, Hot Tuna continues to perform strongly with sales increase of 39% in the six months to 31 December 2008. The Group continues to reap the benefits of the earlier restructuring across all regions. This, coupled with a shift in sales strategy; positioning the Hot Tuna brand from smaller independent retailers to major national retailers around the globe, has, and should continue to see an upward trend in revenue.
The increase in sales has been achieved by reducing our cost base and lowering our marketing costs in line with stockists' expectations as well as greater use of partnering. The improvement in revenue and a focus on a rigorous a rigorous cost cutting exercise has enabled the Group to reduce its operational loss by some 59% to £679,000 against the corresponding period's operational loss of £1,653,000.
All regions now have considerably lower overheads than at the same time last year which means that the Group is in a significantly stronger position to face the global economic downturn.
In Australia, the economic downturn has not yet been as severe as in other parts of the world. With the brand considered a 'home brand' by the market, we anticipate that our Australian business will continue to see strong sales increases with the major stockists of Myer and David Jones with an expanded product range stocked.
In Europe the relocation of some parts of the manufacturing for the European market to Turkey has enable us to capitalise on the benefits of a shorter route to market and lower transport and logistical costs. This will show through with greater prominence in the second half of the financial year. In the UK, Debenhams has increased the number of stores in which it stocks Hot Tuna from 5 to 45. In Germany, the online retailer Sportscheck increased their orders from Spring/Summer 2008 to Spring/Summer 2009 by 305%.
The USA continues to pose challenges however the brand has now broken into Delia's and Victoria's Secret, with repeat orders on specific designs from these stockists. This supports our ongoing strategy of pursuing larger accounts in the USA. Further tightening of logistics and other costs will be required to push this into operational profit.
Niels Juul, Chief Executive commented: "We are pleased with these results in what has been a very difficult trading period across the globe. We cannot ignore the significant task ahead of us and future potential slowdown in retail sales across all our key markets. The Board continues to monitor all aspects of the business and will work with suppliers to reduce manufacturing and development costs. To support the current order book and growth potential of Hot Tuna, the Board is looking at various funding opportunities to provide the necessary working capital."
Contact:
Enquiries: |
|
| Hot Tuna PLC Niels Juul - CEO |
Tel: 020 7016 5100 |
| Pelham PR Kate Catchpole |
Tel: 020 7337 1520 |
| Seymour Pierce Limited Mark Percy |
Tel: 0207 107 8000 |