3 Jul 2015

Pumpkin Patch shares plunge

4:56 pm on 3 July 2015

Shares in the struggling Pumpkin Patch have fallen 13 percent after the company signalled a modest annual loss, and a sharp fall in future earnings.

Pumpkin Patch has overhauled its operations to help boost its flagging performance, after failing to find a suitable buyer.

The company said it was on track to deliver an underlying full year operating profit of about $14 million, and added that changes to its operations as well as financing costs would result in a modest loss.

And it had bad news about the current financial year.

It said gross earnings would be significantly below this year's, due to difficult international wholesale markets and adverse forecast foreign exchange effects.

Pumpkin Patch also announced the appointment of director, Luke Bunt, to take over from current chief executive Di Humphries, who leaves in November.

The company said Mr Bunt, who joined the board late last year, has the skills and experience to address the challenges facing the business.

Meanwhile, another director, Rod Duke, has resigned due to increased commitments with his own retail business, Briscoe Group, which is seeking to buy Kathmandu.