Ecoya predicts profits in next financial year

Tuesday 29th March 2011

Ecoya, which listed on the NZX last May, is predicting it will make a profit in the financial year starting on April 1.

The body, bath and home fragrance company today said indications were that it would finish the March 2011 year with revenue of around $13.8 million.

In its first year as a public company it was expecting a loss of about $4 million after listing expenses of $500,000 and expenses of $170,000 for the acquisition of natural skincare company Trilogy. The projected $4 million loss was before a $400,000 non-cash accounting charge.

For the new financial year, starting Friday, it was anticipated sales would be more than $20 million and the group would be in profit, Ecoya said.

Some recent months had been profitable although the better months were skewed towards the end of the calendar year.

Integration of Trilogy into the Ecoya business was helping accelerate the company's revenue growth and the move towards profit.

Based on current forecasts, the company did not expect to have a need for further capital raising.

A bodycare range was being rolled out.

Executive chairman Geoff Ross said that while trading conditions were tough for some in the retail sector, Ecoya continued to grow in both same store sales and gaining positions within new stores.

Ecoya shares were up 3c to 75c at mid afternoon, having listed at $1 last May.

NZPA

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