UNABLE to resolve its financial issues, publically-listed live exporter Wellard announced a voluntary suspension on the Australian Securities Exchange (ASX) this week.
The Fremantle-based company went into a trading halt last week, which prompted the move by the ASX to grant the suspension, as the trading halt requested by the company was due to expire.
On Tuesday, Wellard announced on the ASX it had requested a voluntary suspension of its securities from the commencement of trading.
This comes after two downgrades in its forecast full-year net profit since February, and with yet another downgrade in its forecast full-year net profit after tax looming.
Since it floated on the ASX last year on the back of a $298.9 million initial public offering, the company has had a bumpy ride.
Wellard said it sought voluntary suspension to manage its continuous disclosure obligations as it finalises its calculations regarding the 2016 financial year net profit after tax.
"The company request that the suspension remain in place until the earlier of the commencement of normal trading on August 15, or until the release of an ASX announcement," it stated.
Wellard has previously cited mechanical problems with its ships, scheduling issues and margin pressure because of high cattle prices as factors contributing to the profit downgrades.
The WA company listed in December at $1.39 a share, which valued it at $560m, but the shares slid to 37 cents after Wellard issued an update on its second profit warning within six months of being a listed entity.
Prior to the announcement on Tuesday morning, Wellard shares were trading at 40c.
Wellard said in June it expected to post a net profit after tax at the bottom of a range between $23.5m and $30m, while in the prospectus issued before listing, it forecast full-year profits of $46.4m.
The suspension will not affect the normal operations of the company, only its share trading.
Jacinta Bolsenbroek
Senior journalist at Farm Weekly.
Senior journalist at Farm Weekly.
