CAP-XX's shares slump on lower H1 profit and despite steady FY outlook
(ShareCast News) - Shares in CAP-XX are down almost a fifth after it turned in an 18% slide in first-half total revenue, a wider pre-tax loss and said its full-year trading performance should be in line with current market expectations.
"Total Revenue of A$1.35m was down 18% on the corresponding half year, largely due to a disruption of supply due to a process change at a key raw materials supplier," it said.
"This issue has now been fully rectified and additional measures have been implemented at the supplier and at CAP-XX to prevent any reoccurrence."
For the six months to 31 December 2016, CAP-XX said its pre-tax loss was $1.9m, which was deeper than the loss of $1.3m reported a year earlier. Revenue was $1.3m, from $1.6m.
"The company's trading performance for the year ending 30 June 2016 should be in line with current market expectations assuming current licence and sales opportunities are realised in the time expected," it said.
Chairman Patrick Elliot said directors were confident CAP-XX's strategy was gaining traction and generating good interest from potential licensees and traditional markets.
"The board is also confident that the resources currently at the company's disposal will allow the organisation to also accelerate new business development opportunities."
At 11:06 GMT, shares in AIM-quoted CAP-XX were down 17.28% to 8.38p each