Wellard enters new stock exchange trading halt


Profit downgrades followed by share freeze as it searches for clear annual result

Wellard enters new stock exchange trading halt
Wellard is navigating a difficult period

 

Livestock logistics firm Wellard has gained a suspension of share trading from the Australian Securities Exchange (ASX) for the second time this month.

The move comes after two profit downgrades in June.

The company expects to resume trading on Wednesday, when an announcement is due to be made.

The company has battled financial headwinds for much of the year.

On August 8, it sought a voluntary suspension while it sought to finalise its net profit after tax.

On August 15, it resumed trading with an update saying it estimated gross profit at $85.9 million after the inclusion of a provision for doubtful debts of about $1.2 million, with net earnings forecast at about $14-15 million.

That included $7.7 million for repairs after breakdowns on two ships, Ocean Swagman and Ocean Outback.

"Wellard has notified its insurer and is making a claim with respect to the breakdowns," it said at the time.

"The claim involves two ships and is complex and it is expected that it will not have advanced sufficiently to be included in the Wellard audited financial statements for FY2016 at the end of August."

It has been completing a review of its assets to determine if any impairment is required.

"It has been a challenging six months for our company with a difficult trading environment and a number of unexpected events," Wellard MD Mauro Balzarini said then.

"Despite this Wellard has maintained its market position and increased market share in some countries and all our ships are currently being utilised."

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