Flooring company Embelton has testified to the slowdown in the housing construction sector, issuing a profit warning after the market closed last night forecasting a probable loss in the second half. The company told the ASX a slowing construction environment throughout Australia had hurt its second half performance. “(It) has had an adverse impact on earnings in the second half due to significant delays in contracted project work, increased product costs flowing from the continuing decline in the Australian dollar and a greater than expected fall in demand from retail partners.’’ Costs linked to its expanded contracting activities have also pinched earnings as delays in expected projects shave profits.
Estia Health Ltd (EHE):
Estia Health said the aged care royal commission currently under way will cost it $2.3 million this fiscal year, and the bad press and flu has hit occupancy rates forcing it to lower its full-year earnings expectations. Despite an additional government funding boost of $9.7 million to $10.2 million this financial year, Estia said it expects earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of $92 million and $94 million. The figures take into account royal commission costs and impacts associated with the opening and closing of new homes. While this is an increase of 2 per cent to 4 per cent compared with the prior financial year, it is lower than previously anticipated with occupancy at its homes impacted by continuing bad publicity in the sector, and influenza in South Australia, Estia said in a statement to the Australian stock exchange.
Legend Corporation Limited (LGD):
Adelaide-based Legend Corporation is set to ink a deal with private equity outfit Adamantem, which has tapped industry stalwart Gary Uren to run the group. ASX listed Legend was placed in a trading halt on Thursday after speculation of a deal became public. Dataroom understands the parties are nearing a transaction of about $100 million to take the global electrical, IT and semiconductor firm private. Sources said Uren, who has more than 30 years experience in the electrical and electronics manufacturing sector, would run a privatised Legend should the deal secure the backing of shareholders.
Sydney Airport Holdings Pty Ltd (SYD):
Sydney Airport has reaffirmed its full-year guidance and confirmed its dividend payout despite a less certain economic outlook. In a statement released to the market ahead of its annual general meeting this morning, chief executive Geoff Culbert said the company remained optimistic. “The overall economic outlook is less certain than what we saw a year ago, but the robustness, resilience, and diversity of our business, together with our track record of performance and growth in all economic cycles, makes us optimistic about the year ahead,” Mr Culbert said. “It also gives us confidence in reaffirming our 2019 distribution guidance of 39 cents per stapled security.”
Woolworths Group Ltd (WOW):
Woolworths is under renewed pressure to quit its controversial pubs and pokies business, with one of its biggest shareholders urging the supermarket giant to get out of gambling to protect its reputation. Woolworths owns a majority stake in Australia's biggest slot machine operator, ALH Group, making the retailer a target for anti-gambling campaigners. ALH Group has more than 12,000 pokie machines across its 323 pubs and clubs. The Sydney Morning Herald and The Age can reveal that pressure has been mounting from one of Woolworths' most influential shareholders, Perpetual Investments, which has told the company's board it should ditch its pokie machines.
（Source: AIMS）
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