Landmark White share price tanks on return to ASX
Written on the 26 August 2019 by David Simmons
After being hit with two cyber-attacks embattled property valuation group Landmark White (ASX: LMW) has returned to the ASX.
But its return has come at a cost, with the group's share price down 52 per cent to $0.09 per share at 12.30pm AEST.
Landmark White was placed into a state of temporary suspension from the ASX in early June after the company was hit with a second data breach this year.
Because of that data breach the company was suspended from receiving work from major clients for the second time in 2019, which LMW says has impacted revenue, profitability and cashflows.
Today LMW has made its long-awaited return to the ASX, saying that it has made improvements to its cybersecurity.
The company also returns with an extra $5.4 million in hand following a successful capital raise which the group intends to deploy on a turnaround strategy.
LMW says over the last two months it has been reinstated as a panel valuer by "several" lenders and anticipates reinstatements by the others in the coming weeks and months.
After the second data breach Commonwealth Bank (ASX: CBA), ANZ (ASX: ANZ), National Australia Bank (ASX: NAB), Bankwest, Bendigo & Adelaide Bank (ASX: BEN), Suncorp (ASX: SUN), HSBC, and Latrobe all suspended LMW as a property valuer.
It has been a rough FY19 for LMW, resulting in the company posting a loss of $15.1 million.
Looking forward, LMW expects to post a loss of $1.5 million in FY20, and hit revenues of $38.6 million.
The new-look LMW will see the company focussing on streamlined operations and improved earnings margins.
"The optimisation strategy is set to capitalise on LMW's newly advanced IT infrastructure and customer information security to improve relationships with LMW's key clients," says LMW.
"LMW will further seek to grow its presence in key market geographies and through expanding its offering to provide a broader base of valuation services outside of those within the current core client base. Ongoing investment in LMW's people and data analytics tools will ensure the company is best positioned to capitalise on opportunities as they are identified."
Business News Australia
Author: David Simmons