Two months after announcing its sale, Hot Tuna expects to announce a firm offer by an unidentified buyer for the acquistion of its brand of surfwear and surf-Inspired streetwear later this month. While it has registered strong interest in the purchase, the management said it would investigate funding solutions and cut its overheads if no sale is achieved.
The British company made these statements last week while reporting a net loss of £741,000 (€896,000-$1,150,000) for the financial year ended last June 30, down from £1,396,000 in the previous year. The company managed to make a gross profit and to reduce its operating losses to £862,000 (€1,043,000-$1,338,000), thanks largely to tight cost controls.
Margins improved sharply in spite of a 54 percent drop in revenues to just £2O7,000 (€250,000-$321,000). Both in Europe and in Australia, sales fell to only £60,000 (€72,500-$93,100), but Hot Tuna reported mild increases in the orders of e-commerce retailers in the U.K. and a mild recovery in deliveries by its distributor for the Italian and Austrian markets.
The company expects to perform better in the current financial year, partly because of a new distribution agreement in Australia that would allow it to scale down its operations there. It hopes to find a similar partner for the U.S., where its women's swimwear has been well received. It plans to target online sales in the future.