Profits warning puts Snakeboard on downward slope
Friday 20 June 1997
All of its directors are having their salaries cut by one-third and must surrender half their share option entitlements. The news came as Snakeboard, which was listed on AIM at 3.5p last November and is now worth 1.5p a share, announced pre-tax losses of pounds 742,000 for the five months to March and said it would not make the pre-tax profit flotation forecast of pounds 2.6m for the 14 months to December. "These projections must now be regarded as no longer achievable," Mr Lloyd said.
Mr Lloyd has agreed to bail out the company by subscribing for pounds 200,000 of convertible loan stock, said that a manufacturing glitch - which resulted in the board's wheels not turning properly - had put the company back by 18 months.
However, he said that the manufacturing issue was resolved, the latest products were ready for shipment and that Snakeboard had secured over $1.1m of new orders in June. "I am putting my money where my mouth is. I wouldn't invest in a company I didn't feel had good prospects. We had a slight manufacturing problem that has set us back. But the market for boards is young and massive and snakeboarding is proving fantastically popular in Europe."
Raymond Moore, managing director, said the cost cutting measures - which include cutting salaries, option entitlements and consultancy fees, could save around $500,000 per year and meant that the group would have sufficient working capital to last for two years: "It is a horrible story. We are a one-product company who had no products to sell. But I went to everyone and said we must protect our working capital. I think it shows a serious and responsible attitude. It's nice that David also agreed to help us out." Part of the shake-out includes the resignation of Nick Macleod Smith, marketing director and brother of the board's designer. The group also plans to outsource its research and development.
Mr Lloyd was planning to expand into clothes and safety equipment. He admitted the market was competitive and said the group planned to introduce a cheaper board - which will retail for around pounds 58 in the UK compared the top-of-the-range board which retails at pounds 120.
- 1 Top 20 misconceptions people believe are true
- 2 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 3 Black Mass trailer: Johnny Depp might have started making good films again
- 4 Jacob Lescenski and Anthony Martinez: Straight student asks gay friend to High School prom and makes a million Twitter friends
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Head transplant: man will be attached to new body in under an hour and aim is immortality, doctor says
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
The sickening truth about food banks that the Tories don't want you to know
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...