The smallest and highest profile share float of the year has emerged from its first three months with a $1.3 million loss and directors predicting it will be losing $50,000 a month for a while yet.
Burger Fuel spent nearly twice as much on expenses as it tookin revenue for its first three months as a publicly listed company, according to information supplied to the NZAX yesterday. Company director Josef Roberts said that was due to the costs of running the initial public offering, including around $400,000 for the advertising campaign.
But with the shares that floated in July at $1 currently trading at 60c, the company co-founder Josef Roberts said it was on track to start bringing in a profit. He was just not sure when that would occur.
The float had been aimed at young people who did not normally invest in the sharemarket. Figures supplied yesterday showed the company made a net loss of $1.35 million.
Of that $991,000 was for represented costs associated with the company's IPO, including fees paid to brokers and advertising.
Another $203,000 related to Burger Fuel's investment in Australia, where the company opened its Kings Cross store on October 7 and where it is planning two more stores.
Roberts expected continued losses of $50,000 a month but expects these would progressively reduce as additional stores were opened.
He said that the current value of the share should be seen in the context that only a tiny number of shares had changed hands, so it did not represent dissatisfaction with the stock.
The IPO was eventually limited to 8 million shares, with 5.25 million bought by the public and the remaining 2.75 million picked up by Roberts and founder Chris Mason.
