No, we’re not going to talk about the fish called Tuna. Hot Tuna is actually one of the first surf-fashion brands, born in Australia in 1969. Today Hot Tuna (HTT.L) shares were in the same boat as the other top five losers at the AIM; the company’s shares dropped by 22.73 percent, arriving at a price of 2.05 pence. This comes after the company said just a week ago that it has won orders with Hard Rock Cafe Boutique store in Las Vegas.
The Las Vegas store is part of the Hard Rock group, which boasts 138 venues in 42 countries.
In October of 2007, the company said its full-year pre-tax loss widened on higher costs. Hot Tuna incurred £1.7 m of exceptional share-based payment charges, although it said the year ahead looks 'very exciting' and started in a 'very positive manner'.
The lifestyle apparel brand posted a pre-tax loss of £5.33 m for the year to June 30, 2007, against a loss of £2.02 m last year. Loss from operations during the period was £3.70 m, compared with £2.05 m last year.
Revenue grew 68.2 per cent to £619,131, while general and administrative costs increased to £3.21 m from £1.83 m a year ago.
The company said it remains very confident about the future of the brand and is looking forward to the global launch of the kids wear in 2008.
Hot Tuna's stock price looks like as if it were ice melting in the hot sun. From as high as the 15 pence barrier back in March 2007, the stock now barely holds onto the 2 pence line. OUCH!
I believe there is a strong appetite for Hot Tuna's brand in the United States as well as in the UK and in its homeland - Australia. The company itself is up-to-date with the latest trends of the market. The company has re-launched its online website allowing visitors to shop online. The last year has been an enormously successful for Hot Tuna as the company's brand has guaranteed itself a strong place in the fashion world.
However, I wouldn't tend to say the same about the stock. The company had something to cheer about in 2007, but the shareholders vice versa. What could we expect in 2008? I reckon if the company continues to grow at the same pace and notably increases its sales, shareholders might see the light at the end of the tunnel by the end of this year.
Reference
www.hottunaplc.com
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