AILING DICK SMITH POISED TO REVEAL DEBT PLANS

Written on the 4 January 2016 by Nick Nichols

AILING DICK SMITH POISED TO REVEAL DEBT PLANS DICK Smith Holdings (ASX:DSH) this week hopes to give shareholders a clearer picture of its plans to get on top of its debt position in the wake of a falling share price.

The company's shares have been placed in a trading halt pending the announcement due on Wednesday.

Dick Smith requested the trading halt to update the market on its funding position and its debt financing covenants as its share price continued to languish at record lows despite a bumper Christmas trading season reported by the broader retail sector.

Shares in the electronics retailer slumped to a low of 35.5c a week ahead of Christmas on the back of two profit warnings in October and November.

The shares traded as high as $2.25 in May, just above their $2.20 issue price in 2013 when the company was floated by private equity firm Anchorage Capital Partners.

The company announced on November 30 that it would be posting a $60 million non-cash impairment on its December-half profit following weaker-than-expected sales over the preceding month. At the time it also warned further impairments could be recorded, depending on Christmas trading.

Dick Smith posted a net profit of $43.4 million in FY15, up 3.1 per cent on a year earlier.

At the time it forecast net profit would grow to between $45 million and $48 million in FY16, thanks to a raft of new store openings. Its most recent update in November cast doubt on this target being achieved.

Dick Smith's shares last traded at 36c.

Author: Nick Nichols

Latest News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

TECHNOLOGYONE OUTSTRIPS PROFIT EXPECTATIONS AS R&D SKYROCKETS

TECHNOLOGYONE (ASX: TNE) has surpassed market expectations to achieve a half-year profit after tax of $8.1 million, u...

CLASS ACTION FILED AGAINST SURFSTITCH AFTER ANOTHER EARNINGS WIPEOUT

AS ONLINE retailer SurfStitch (ASX: SRF) battles for survival following another negative earnings forecast, a $100 mi...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

Related News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

AUSCANN RESUMES TRADE AFTER $12 MILLION CAPITAL RAISING

IT'S BEEN a big few days for medical cannabis manufacturer AusCann (ASX: AC8), as the company emerged from a trad...

APN AND oOh!media MERGER CALLED OFF, CEO 'AMAZED' AT ACCC'S DECISION

THE PROPOSED $1.6 billion merger between Australia's two largest advertising groups, APN (ASX: APO) and oOh!me...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter