Coote Industrial has estimated its full year loss will blow out to between $45 million and $55 million.
Coote Industrial has estimated its full year loss will blow out to between $45 million and $55 million.

Coote Industrial has estimated its full year loss will blow out to between $45 million and $55 million.

The company warned last week its estimated full-year loss would widen substantially from its estimate in May of $2 million but could not put a value on it.

Today, the company said between $6 million and $7 million of the overall loss could be attributable to its underlying trading operations with the balance attributable to several one-off expenses, including a substantial loss on the disposal of the South Spur Rail Services business.

However it said the figure did not include potential asset write-downs by majority owned Coote business, Greentrains.

The company has been the subject of a protracted, bitter and complicated takeover battle in recent months, which is also likely to have added to the company's poor financial showing.

Tasmanian businessman Dale Elphinstone recently wrested control of Coote pledging to turn the business around.

Mr Elphinstone, who now holds a 44.3 per cent stake in the company, last month ousted founding managing director Michael Coote, installing himself as chairman and his lieutenant Vince De Santis as the new managing director.

The company recently completed a $42.6 million rights issue, which was co-underwritten by Mr Elphinstone and designed to shore up its balance sheet while it completes a strategic review.

Coote said it expected to release its full year results before the end of August.

"The board remains confident of the future prospects of its key businesses and looks forward to a much improved underlying operating performance in full year 2011 in terms of both revenue and profit," the company said in today's statement.

Coote shares climbed 0.5 cents, or 2.63 per cent, to 19.5 cents by 10.40am.

The West Australian

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