Friday July 3, 08:57 AM
UPDATE 1-Cosalt swings to H1 loss; scraps interim dividend
* H1 pretax loss 3.4 mln stg vs yr-ago profit 780,000 stg
* Says in advanced stage of equity fundraising plan
* Says H1 orders deferred, coming through in H2
* Shares fall as much as 23 pct
(Adds details)
July 3 (Reuters) - Marine safety group Cosalt Plc slipped to a first-half pretax loss on exceptional costs and write-downs, and said it was scrapping its interim dividend to conserve cash, sending its shares down as much as 23 percent.
The company, which makes life jackets under its Crewsaver label, also said it was in a 'well advanced' stage for an equity fundraising to bolster its balance sheet.
Cosalt (LSE: CSLT.L - news) , which declared an interim dividend of 6 pence per share for the first half ended April 27, 2008, said it intended to resume dividend payments following the equity fundraising.
Cosalt posted a pretax loss of 3.4 million pounds ($5.57 million) for the 27 weeks ended May 3, compared with a profit of 780,000 pounds a year earlier. Revenue rose 7 percent to 52.85 million pounds.
Cosalt, which inspects and maintains life-saving equipment such as lifeboats on oil and gas rigs, said exceptional costs and write-downs amounted to 3.9 million pounds.
'Volatility in the oil price in the first half resulted in our key customers (in its offshore unit) looking to save costs and defer projects... and this impacted both our sales pricing and volumes,' Cosalt said.
However, the company said the deferred orders were coming through in its traditionally strong second half.
Shares of the company, which have lost 39 percent of their market value since April 30, were down 14 percent at 42.5 pence at 0737 GMT on the London Stock Exchange (LSE: LSE.L - news) .
($1=.6109 Pound)
(Reporting by Kumar Alagappan in Bangalore; Editing by Anne Pallivathuckal) Keywords: COSALT/
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