Sharechat Logo

New Image forecasts FY loss of $4 million

Thursday 24th May 2012

Text too small?

New Image, which makes colostrum-based health tonics, has forecast a full-year loss of about $4 million as it writes down goodwill and stock.

Underlying profit is expected to be about $1.3 million in the 12 months ended June 30, the company said in a statement. Sales are predicted to fall 3 percent to about $73 million, when compared to a year earlier.

The Auckland-based company said the write downs include a loss on investments and the wind up of its executive share scheme. It also factors in the start-up costs for the establishment of the new spray dry milk powder and wet blend plant in south Auckland.

"The writing down of stock includes infant formula manufactured to order for Natural Dairy in China not taken up," said Graeme Clegg, chairman. "New Image has subsequently signed a number of contracts with Asian companies for the delivery of high volumes of infant formula from July 2012."

The orders are currently undergoing China Inspection and Quarantine approval.

In February, the company posted a first-half net loss of $157,000, after Malaysian pharmacies and retailers discounted the manufacture's drink powder, eroding sales. Revenue fell 5.4 percent to $35.2 million.

Shares in the company are currently trading at 12.2 cents and have shed about 40 percent this year.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

EBOS announces appointment of new Chief Financial Officer
AM Best affirms Tower Limited's A- (Excellent) FSR
MCK enters into conditional agreement for Whangarei land
April 26th Morning Report
SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills