To the six questions raised by Australian Securities Exchange vide letter dated 21 November 2018, Myer provided an official response today.
It all started when the Australian Financial Review published an article on Myer’s financial performance on 16 November 2018. In response to which Myer immediately clarified that the company is well versed with the regulatory disclosure obligation and duly complies with the same.
Further after the market close on 16 November 2018, the company released “Response to ASX” under which it claimed AFR article has presented incomplete and leaked financial information based on unapproved internal document. Along with demolishing claims made by AFR article, the company provided an actual ‘unaudited’ sales update for the first quarter 2019 in the same release.
The statement read that Myer’s Q1 FY19 total sales was down by 4.8% compared to previous corresponding period, however total online sales grew by 3.6% during the period. Further confronting the NPAT loss incurred during the period, the company said that “since the last five years, Myer incurs NPAT loss in the first quarter.” Moreover, the loss incurred in Q1 FY19 is reported to be well below the loss of Q1 FY18, thereby reflecting the company’s core focus on “profitability”.
In this event Myer’s securities went into a trading halt before the start of 16 November trading which later got lifted on 19 November. But as the trading halt got lifted, MYR’s share price fell straight by 8.9% from $0.45 on 15 November 2018 to $0.41 on the close of trading on 19 November 2018.
Following this meltdown in Myer’s securities, Australian Securities Exchange raised several queries from Myer. The questions highlighted by the ASX mainly revolved around the acknowledgement that does Myer considers the information provided in 16 November statement ‘Response to ASX’ to have material effect on the company’s price and value?
To this ASX query, Myer today stated that it does not consider that the information released in the announcement ‘Response to ASX’ would have material effect on the price or value of its securities. In today’s response duly signed by Myer’s Chairman Garry Hounsell, the company stated that circumstances led to the release of that announcement.
Moreover, in the previous release, Mr. Hounsell stated that Myer has reduced net debt by $7 million compared to pcp and has solid cash flows.
After responding to ASX queries, Myer Holdings witnessed a 1.205% increase in its share price on 27 November 2018. After that, MYR stock last traded at $0.420 with market capitalization of $340.83 million. But, in the long term performance change, the stock price of Myer Holdings Limited (ASX: MYR) declined by 41.55% over the past one year.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.