The company has announced that a halt has been imposed by the Turkish Government on the import of live feeder cattle into Turkey from all countries. The news reports indicate that the halt may be temporary, and it is not clear how long the halt may last at present. It appears to be in response to an accumulation of stocks in Turkey and aligns with seasonal conditions. Turkey also imports slaughter and breeder cattle in addition to feeder cattle.
The MV Shearer, Wellard’s livestock vessel, has recently been actively chartered in the live cattle market between South America and Turkey. From May 2018 until December 2018 Wellard completed five voyages into Turkey in the 2018 calendar year. Given the changing nature of the situation, at this point, if any, it’s not possible to predict the exact impact, on the company’s 2019 calendar year shipping schedule.
Recently to generate approximately $13 million worth of free cash flow the company made the sale of its non-core assets and continued to deleverage its balance sheet further. At the start of this financial year he Wellard Feeds business, the ‘La Bergerie’ Pre-Export Quarantine business, and the Beaufort River Meats business as being non-core assets that did not fit the company’s new more streamlined strategy. For an aggregate amount of $8 million including working capital the company previously announced the sale of its Beaufort River Meats business.
Including its working capital to a subsidiary of Ausvision Rural Services Pty Ltd for the sale of its ‘La Bergerie’ Pre-Export Quarantine business, Wellard has also entered, binding term sheets for an aggregate amount of approximately $5 million.
Wellard Limited (ASX: WLD) traded lower today as at December 31, 2018, by 6.78% to stand at $0.055. The performance change for the stock in the last 12 months has been -61.94%. The market cap at current market price is at $31.34 million.
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