Sorry, this year’s loss will be bigger than expected, TZ warns
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Smart lock seller TZ says 2018 won’t be the year it breaks a long-running losing streak, as it prepares shareholders for a bigger than expected annual loss.
They are expecting an EBITDA (earnings before interest, tax, depreciation, and amortisation) of $2.5 million, slightly smaller than last year.
They were originally expecting the loss to be $1.5 million.
A positive outlook at the end of March was derailed by missing out on two major tenders in the US and Australia, and it “may not” be able to deliver an unspecified number of products because of manufacturing issues.
TZ has struggled for years.
The company last year made headlines after a former chief executive was extradited back to Australia from Thailand and charged with dishonest conduct.
From 2006 to 2008, two former directors allegedly defrauded the business out of $6.25 million.
The corporate watchdog alleged that John Falconer used his position dishonestly on 16 occasions to funnel money into entities associated with himself and Andrew Sigalla, another former director of TZ Limited.
In November last year managing director John Wilson said TZ had been in a “perilous position” in 2009.
In the annual report last year, then-chairman Mark Bouris said “the road to recovery has taken significantly longer and required more investment than originally expected”.
Mr Bouris joined the company in 2009 after the alleged activity took place.
The company has managed to narrow its losses from the horror year in 2013, when it reported a $23.2 million loss.
In March, the company said it was seeing stronger second half sales and growth in the US and Europe, and expected good fourth quarter sales.
TZ has been contacted for comment.
TZ shares fell 4 per cent to 26c on Friday morning.