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Funtastic Limited (ASX:FUN) has halved its full year earnings forecast on the back of lower than expected sales and announced the resignation of its CEO Stewart Downs.

 

The toy manufacturer now expects annual EBITDA to reach between $10 million to $12 million, down from an earlier forecast of between $19 million to $23 million.

 

Mr Downs will leave Funtastic on July 31 after five years with the company and will be replaced by board member Neil Pizmony.

 

Funtastic has also flagged plans to tackle excess stock to lower the value of its inventory and affirmed it expects to tie-up the divestment of its Madman business by July 31.   

 

Shares in Funtastic sank 13.04 per cent on Monday to close at $0.06. 

 

Funtastic reported a net loss of $25.9 million in the first half of the 2014 financial year.