Livestock exporter Wellard’s shares are in another trading halt this week ahead of the release of full-year results on Wednesday.
Earlier this month Wellard shares stopped trading for a week as the company reviewed its trading performance and then flagged its third profit writedown in six months.
It forecast a net profit after tax for the year to June 30 of between $14 million and $15m when details are reported on Wednesday.
This week’s trading halt was requested to allow Wellard to finalise its proposed announcement.
Although its vessels have been busy, Wellard warned two weeks ago its tight trading margins, including the high cost of sourcing live cattle for its key Indonesian and Vietnamese markets, had eroded profit expectations.
It also forecast a possible writedown in asset valuations.
The Perth-based company, which listed on the Australian Securities Exchange late last year, also suffered $7.5m in ship breakdown costs in February which have contributed to its earnings downgrades and a 75 per cent slide in its share price to about 32 cents last week.
It told the ASX it was making insurance claims with respect to the ship breakdowns, but doubted if the complex claim process would advance far enough to be included in its audited financial statements at the end of August.