LBB.L Share News (LBB)

Shares in product developer LiteBulb fell by 30% on Monday after the company lowered its expectations for the full-year and announced major strategic changes as its chief executive heading for the exit door.After conducting a review of its business operations, the group decided to put a hold on acquisitions and focus on accelerating the integration of the operating divisions and focus on driving organic growth.As part of the strategic changes, its chief executive Simon McGivern and sales director James Philips have resigned from the board.The company has started its hunt for a new chief executive, and Howard Partington, managing director of concept merchandise, will be appointed as interim chief executive in the meantime.Guy Pettigrew and Leigh Webb will join the board and chief financial officer and chief operating officer respectively.Despite posting good trading data for the five months ended 31 May 2015, thanks to a strong response from retailers to its new product ranges, LiteBulb said it had been hurt by a delay in starting some projects, while trying to reduce costs.As a result, LiteBulb expects to produce revenue growth of approximately 55% on last year, which is lower than current market expectations. However, it remains on track to deliver its first positive earnings before interest, taxes, depreciation, and amortisation (EBITDA), compared with last year's EBITDA loss of £0.4m.Simon McGivern, who resigned as chief executive with immediate effect, said: "The business has more than doubled in size every year for the last several years and it now needs the rigorous application of more operationally experienced management to yield the underlying profitability that undoubtedly exists within the business."Following the news, FinnCap analysts downgraded their pre-tax profits forecasts to broadly breakeven and for next year from £4.1m to £2m. FinnCap also revised its target price from 75p to 40p.Shares in the company were trading down 31.03% at 25p on Monday at 1141 BST.