Bapcor shares fall 29% on sales downturn, board exodus
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More news: Bapcor shares nosedived in early trading after the Autobarn, Autopro and Burson owner warned of weaker-than-expected sales in May and June and announced the resignation of three board members on Wednesday.
Shares were down 29% to $3.63 at 11am AEST, leading losses across the ASX 200 index.
Bapcor issues sales warning, announces triple board departure
The news: Auto parts supplier Bapcor has warned investors that its second-half trading performance was "below" expectations as the company suffered "weaker sales results" than anticipated during the period.
Bapcor also confirmed that three board members — Mark Bernhard, Brad Soller and James Todd — resigned as directors after close of trading on Wednesday. The company said it will consequently accelerate its current board refresh process.
The numbers: Bapcor is set to report full-year revenue of $1.94 billion, down 1.4% year over year, according to unaudited figures released this morning.
The company also expected statutory net profit after tax to be between $31 million and $34 million. This follows a "comprehensive review" of the company's balance sheet, which identified $43.3 million to $45.3 million in unaudited post-tax significant items in the second half of the year, in addition to $4.7 million recognised during the first-half period.
Bapcor reported a statutory loss of $158.3 million in the previous financial year, triggering a review of the company's cost base and structure.
The context: Bapcor said sales in May and June, the company's largest trading months, were "disappointing" relative to expectations. It noted "significant disruption" to its specialist wholesale segment due to structural changes and headcount reductions.
The company flagged "the continued challenging Australian retail environment" with lower spending on discretionary categories, competitor activity and changes to its promotional cycle.
What they said: "Significant work has been undertaken during the year to simplify the business which has disrupted trading especially in the networks segment," said Bapcor executive chair and CEO Angus McKay.
"These changes were disruptive but necessary as we strive to simplify operations to set us up into the future."
The source: ASX
