Healthy fast food chain Oliver’s has disappointed shareholders again, releasing yet another profit downgrade in spite of a change of leadership and strategy.

Investors responded accordingly, dumping the stock and sending it lower by 55 per cent to 4.3c, a fraction of its 20c IPO price exactly two years ago.

Full year revenue is now expected to be 12-15 per cent lower than forecast in November at $34-$38 million, while EBITDA (earnings before interest, tax, depreciation, amortisation) has swung from a forecast $3m-4m profit to a $1m-4m loss.

Oliver’s blamed the downgrade on a rage of factors, from roadworks outside flagship stores to new pricing and products not having the expected effect, similar reasons as the profit downgrade in May last year.

The company is still walking off the strategy from prior management of opening stores in marginal areas.

Oliver’s chairman Mark Richardson admitted to investors he was “very disappointed” but was confident shareholders would soon start to see improvement from changes being implemented.

“We must allow time to realise the benefits of the changes over the coming months and for these to flow through to performance and profitability,” he said as he asked investors for patience.

Oliver’s has issued full year profit downgrades in both years it’s been listed and showed the founder to the door in June.

Oliver’s shares over the last 12 months.

The quarterly figures were also disappointing.

While Oliver’s received $8.9 million in cash receipts over the December quarter, which was slightly higher than the prior period, it didn’t reflect the fact that Christmas and holiday trading should have been an historically stronger time of year for the retailer.

CEO Greg Madigan was optimistic about the company’s future in spite of its poor run of results.

“The Oliver’s brand is young and still offers incredible potential. If we continue our consolidation, improving the current portfolio and resolving sales and profitability challenges in subdued trading conditions, we will be in an incredibly strong position to move forward and expand, realising the potential we all know the brand possesses,” he said.

Oliver’s has announced $1m of cost savings including the closure of its Dubbo store, and from renegotiating supply deals.

It says further store closures and redundancies may occur in the future.

The Company has made significant capital expenditure in recent months such as for new ovens and migration to a new accounting system, but these have not yet borne fruit.

Although the company undertook a capital raising in November, it only raised $4.1m of the $7.4 it wanted and the company admitted the remaining stock is unlikely to be placed within the three-month shortfall deadline.

Stockhead has contacted Oliver’s for comment.

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