Snoozebox, the temporary hotel operator, admitted it needs a “more rigorous approach to management” and extra funding to support its plans this year.
Founder Robert Breare stepped down as chief executive last month to focus on sales and development following a “disappointing” full-year loss, and since then a new executive committee has been reviewing all aspects of the Aim-quoted business.
In yesterday’s update, Snoozebox, which uses converted shipping containers to create temporary hotels at events such as the Edinburgh festivals and the Silverstone grand prix, said: “The review is now substantially complete and the business requires some reorganisation, improved systems and a more rigorous approach to management.
“In addition, the company will require further capital to support its 2013 trading programme and to fund and exploit its current opportunities. The board is exploring its options with regards to such funding.”
The company also said that of the 14 events which it planned to attend, it has decided to withdraw from two because returns were likely to be “inadequate”.
However, it insisted that the current expectations for 2014 are “positive”. Shares in the company closed down 9p at 26.5p. They have now halved in the past month.