On 16 November 2018, Myer Holdings Limited (ASX: MYR) announced that its securities would be placed in a trading halt at the request of MYR, pending it releasing an announcement. Unless ASX decides otherwise, the shares of Myer will remain in trading halt till 20 November 2018 or when the announcement is released to the market.
In its latest announcement, Myer informed that the reason for the request is to further respond to the article published by Australian Financial Review commenting on the Company’s financial performance. AFR recently published an Article Titled “Myer sales continue collapse” in which it reported that the company’s sales in Q1 FY19 are down 5.5 percent year-on-year, and down 8.9 percent against Q1 of FY 2017. AFR also reported that the online sales of the company increased by 41% as compared to the same period two years ago, but they were down by 5.2% compared to last year.
In response to the AFR article, Myer released a media release stating that the company is well aware of its continuous disclosure obligations and confirms it follows them. The ASX compliance unit was annoyed at this vague response by Myer which is why ASX forced Myer Holdings Limited to go into a trading halt.
In FY 2018, the total sales of Myer declined by 3.2 percent to $3,100.6 million as compared to FY 2017 and were down by 2.7 percent on a comparable stores basis. The operating gross profit (OGP) declined by 2.9 percent to $1,184.4 million in FY 2018, and OGP margin increased to 38.2%. Further, the cost of doing business (CODB) increased by 1.5 percent to $1,035 million. The company reported that the Net profit after tax (NPAT) pre-implementation costs and individually significant items decreased by 52.2 percent to $32.5 million in FY 2018. In FY 2018, the operating cash flow (before interest and tax) was $131 million with cash conversion at 97 percent and capital expenditure of $87 million.
During the fiscal year 2018, the company launched The Myer Market which is an online lifestyle destination where customers can find a curated range of new brands from diverse sellers, with a focus on home and entertainment. Throughout FY 2018, the company continued its refurbishment works at Castle Hill in New South Wales and Maroochydore in Queensland and completed the refurbishment of our Eastland store in Victoria. In the month of March, the company closed the Colonnades store in South Australia and successfully negotiated a closure date for its Logan store in Queensland ahead of the lease expiry. During FY 2018, the company also refinanced its banking facility through a binding term sheet with its existing lenders.
In the last six months, the share price of the company increased by 20.00 percent as on 15 November 2018. MYR’s shares last traded at $0.450 with a market capitalization of circa $369.58 million.
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