News

Venteco warning disappoints

07 December 2007 09:37:00

Non-toxic pest control group Venteco was overrun Friday after it warned it would report a full year loss following an unexpected slowdown in its core operations.

The group said it anticipates reporting a loss at the EBITDA (earnings before interest, tax, depreciation and amortisation) level for 2007, versus previous forecasts for a small profit.

As a result, it has decided to implement a cost cutting programme in the hope that results of this initiative should be evident during the first half of 2008.

Venetco added that efforts to secure major contracts for its Cryonite technology, which freezes pests using a patented carbon dioxide snow, have been slower than anticipated.

It also flagged problems at Silvandersson, a maker of glue-traps for flies and other insects, where seasonal order intake has since been impacted by the relatively cool and wet summer months in its main markets. Sales for September and October were weaker than expected.

"It is frustrating that much of the organic growth the group had expected this year has been delayed," said CEO Stefan Hansson.

"However we are very encouraged by the favourable feedback Cryonite is gaining from tier one customers in trials and we remain confident that the group is well placed to deliver long term value to shareholders."

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