Trading Halt For RCR Tomlinson Limited: What You Need To Know

The shares of RCR Tomlinson (ASX: RCR) continues to remain in trading halt on November 14, 2018. Earlier, on November 12, 2018, the company had made an announcement that it had requested to keep its securities in trading halt because it plans to update the market about its earnings outlook for FY 2019 as well as the consequences for the funding by November 14, 2018. However, today, the company made an announcement that its securities would be suspended immediately. The companies generally opt for the voluntary suspensions of their securities if they are already in the trading halt and they are unable to update the market. Moreover, the market is still unaware about for how long the securities of the company would be in the suspension phase or when the company would be updating the investors.

It seems like the market players are still figuring about what’s happening in RCR Tomlinson. Recently, the company’s CFO or chief financial officer has made a resignation and stated that personal circumstances are the primary reason for his resignation. The company’s former CEO or chief executive officer had also left his position a few months ago without giving any explanation for his decision, and he received $1 million as termination payout. At present, the company is being led by Bruce James, a non-executive board director. Earlier in the press release, the company stated that it would be looking out for new CFO. However, the financial controller of the group named Mr. Andrew Batch has decided to take the responsibilities of the CFO and would be in charge of these responsibilities till the replacement is found out.

In the month of July 2018, the company’s securities were also halted, and the halt ended with the company reporting $57 million write-downs in regard to 2 Queensland solar farm projects as well as coming up with the fund-raising amounting to $100 million. The equity issue was well-supported primarily by the institutional investors. In the month of August, the company stated that it has been expecting to achieve underlying earnings before interest as well as taxation in the range of $40 million-$48 million in 2018-19. The company also reflected weaker tone towards the revenues. It stated that the revenues are expected to be lower when compared to the number the company managed to generate in 2017-2018.

However, the company was also faced by several questions that whether it is undergoing some sort of financial difficulties with respect to some solar projects as the company sacked over 100 workers from Victorian Wemen solar project and this has been done in the month of October.

The last traded price of RCR Tomlinson Limited was A$0.870 per share, and the company had a market capitalization amounting to circa $231.11 million. The company is having an annual dividend yield of 9.77%. Over the past one month, the company has delivered the return of -9.38%. While over the past three and six months, the company delivered a return of -27.20% and -70.24%, respectively.


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