ADAIRS PAYS BIG FINE FOR BREACHING DISCLOSURE AGREEMENTS

ADAIRS PAYS BIG FINE FOR BREACHING DISCLOSURE AGREEMENTS

ASX-listed retailer Adairs (ASX: ADH) has paid a $66,000 fine after breaching its disclosure obligations to the ASX.

The Australian Securities & Investments Commission (ASIC) fined the company after it failed to comply with continuous disclosure obligations.

ASIC found Adairs was in breach of its continuous disclosure obligations between 23 September and 2 November 2016 by failing to inform the ASX that its forecast figures for the 2017 financial year would be materially lower than the market consensus.

Cathie Armour, ASIC Commissioner, says companies need to ensure changes to earnings must be disclosed as soon as they are made aware.

"It is fundamental to the integrity of the market that listed entities disclose market sensitive earnings surprises immediately," says Armour.

In August 2016, when Adairs announced its full financial year 2016 results, the market consensus of the brokers' forecast for Adair's FY17 results was:

  • EBITDA of $51.5 million
  • EBIT of $44.5 million
  • NPAT of $29.9 million

Following the FY16 announcement, on 23 September, Adairs received updated financial reports and revised forecasts which were substantially lower than what was reported in August. The revised forecasts for the full financial year 2017 were:

  • EBITDA of $42.664 million
  • EBIT of $36.682 million
  • NPAT of $24.246 million

Adairs did not notify the market of these revised changes until over a week later on 2 November when the company released a trading update.

Following the announcement of the $66,000 fine, Adairs' shares have fallen by 2.24 per cent to $1.53.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 
Finexia acquires stockbroking and advisory team from Everblu Capital in a new milestone for future growth
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has acquired the Sydney-ba...
Finexia
Advertisement

Related Stories

Soul Patts offers $3 billion deal for Perpetual amidst asset management spin-off

Soul Patts offers $3 billion deal for Perpetual amidst asset management spin-off

Diversified investment house Washington H. Soul Pattinson and ...

Qualitas raising $50m to capitalise on fast-growing private credit portfolio

Qualitas raising $50m to capitalise on fast-growing private credit portfolio

Qualitas Real Estate Income Fund (ASX: QRI) is raising $50 million ...

The 7 charts that show Australians struggling as saving falls to near zero

The 7 charts that show Australians struggling as saving falls to near zero

The national accounts released by the Australian Bureau of Statisti...

Telstra forks out $24m as its history of wrongful billing finally bites

Telstra forks out $24m as its history of wrongful billing finally bites

Wrongfully charging customers for inactive internet services over m...