Murray River Organics says turnaround is on track as loss blows out 607pc
Murray River Organics shareholders haven’t had many reasons to smile over the past two years, but chairman Andrew Monk has assured investors again “the turnaround is underway”.
Yet in the same annual report where he said that, the health food company (ASX:MRG) also reported a staggering 607 per cent blow out in the 2018 financial year loss, to $58.1 million.
Murray River has had its share of headaches since listing in late 1016.
The company’s shares have been suspended since the end of May, shortly after it harvested 3,105 tonnes of dried fruit and fresh table grapes — which was lower than its disastrous 2017 harvest.
It was back in April that Murray River was telling investors that the dark days were over, following a saga where its two founders were forced out and the company had to write down profit and inventory, only to return by rolling the board.
They appointed a “turnaround expert”, Valentina Tripp, as its new CEO.
But in an address to shareholders, Mr Monk said though “FY18, like FY17, has not been a good year for shareholders of MRG, the turnaround is underway with early benefits being realised”.
“We are moving ahead with a plan to restructure the balance sheet through a $30 million equity raising and we now have a highly motivated, experienced and competent management team.”
The $58.1 million loss was attributed to a range of factors, including the aforementioned harvest, weak sales, impairment and revaluation of some of its assets and costs involved with the restructure.
The company has no cash in the bank and owes $3.8 million.
Revenue for the financial year increased however, up 41pc to $68.5m.