LONDON (Alliance News) - LitBulb Group Ltd saw its shares fall Tuesday, after reporting a bigger loss for the first-half of 2014, although it said that while it is heavily reliant on trading in the fourth quarter, it expects to report a profit for the year.
The branded product developer posted a pretax loss of GBP2.7 million for the six months to June 30, compared with a GBP1.0 million loss in the first-half of 2013, hit by significantly higher costs across the business.
"This increased loss during the period is as a result of the increased scale and the seasonal profile of the group. The group's profit is forecast to be delivered in the fourth quarter of 2014 in line with the Christmas trading period," the company said in a statement.
Revenue in the period rose to GBP4.0 million, up from GBP1.4 million last year, and the company said it has a confirmed order pipeline for delivery in the second-half of the year of over GBP12 million.
Its first-half gross margin however reduced to 39%, down from 43% last year, due to the mix of product sales, as its Go and Meld businesses operate on lower gross margins than its Bluw business, which contributed to a majority of sales in 2013.
The company said it is on track to announce maiden profits after tax for the full-year, and revenue in excess of GBP20 million for the full-year, up from GBP8 million in 2013.
"As always, the second half of the year sees the majority of our sales as retailers stock up ahead of Christmas, but with the forward order book currently totalling over GBP12 million, we are confident that we will deliver a considerable uplift in revenues for the full year and move into profitability for the first time. We have invested heavily in the management team and infrastructure, and now have scope for further strong growth, both organically and by acquisition," said Chief Executive Simon McGivern in a statement.
LiteBulb shares were trading 5.9% lower Tuesday afternoon at 0.903 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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