Shares in surf-wear brand Hot Tuna (LON:HTT) fell around 35 per cent today as the firm revealed that revenues have not met forecasts in 2011.
It says that future cashflows are not expected to support the business through the coming year.
Last month the firm decided to sell its key assets, the IP and stock of the Hot Tuna brand. The board says it is currently working with interested parties and it expects to present a firm purchase offer to shareholders in January.
It says that it has received strong interest in the potential sale. However if a sale is not agreed then the board will investigate funding solutions and aggressive overhead cutting while working constructively with its Australian distributor.
If a sale is agreed then it is expected that the stock will remain listed as a ‘shell’ company.
In Hot Tuna’s final results for the year ended June 30 2011, announced today, it revealed a disappointing sales performance.
Turnover reduced to £0.21 million from £0.46 million in the previous year. The firm also reduced stock ordering though and it reported a small gross profit of £0.05 million, compared with a £0.03 million loss in 2010. The firm ended the period with £0.68 million cash.
On AIM Hot Tuna shares fell 0.04p, or 36 per cent, to stand at 0.08p.