Wellard FY loss widens on poor second half

29/08/2019 - 08:59

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Wellard's full-year loss has widened by 33 per cent to $48.4 million after the cattle exporter was hit by Turkey's halt on live feeder imports and large impairments.

Wellard FY loss widens on poor second half
Earlier this month, Wellard's deal to sell its M/V Ocean Swagman to Nova Marine Holdings fell through

Wellard's full-year loss has widened by 33 per cent to $48.4 million after the cattle exporter was hit by Turkey's halt on live feeder imports and large impairments.

Revenue for the 12 months to June 30 was flat at $235.1 million but Wellard, which had reported a healthy first-half profit, took a second-half hit from limited chartering of its two larger vessels.

Wellard's bottom line was also hit by a jump in impairments to $22.4 million, largely against its MV Ocean Ute vessel and the soon-to-be-sold MV Ocean Swagman.

In February, Wellard has posted a $2.9 million profit for the six months to December, up from a $7.4 million loss in the previous corresponding period, and its first profit since listing on the ASX over three years ago.

However, at the time, executive chairman John Klepec warned that the company could potentially be affected by the temporary closure of cattle exports from South America to Turkey, and pressure on importer and exporter margins in the trade of Australian cattle to Indonesia and Vietnam.

Earlier this month, its deal to sell the MV Ocean Swagman to Nova Marine Holdings for $US25.2 million (around $37.2 million) fell through and the company resumed talks with Heytesbury whose earlier bid of $US22 million had been trumped by Nova's.

Shares in Wellard were down 7.3 per cent to 3.8 cents each at 10.30am AEST.

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