Goodman Fielder in trading halt ahead of capital raising announcement

Tuesday 27th September 2011 1 Comment

Goodman Fielder, the food manufacturer whose brands include Edmonds baking products and Vogel’s bread, plans to raise new capital and has asked for a trading halt.

Trading in the dual-listed company’s shares and bonds has been stopped ahead of the announcement of a capital raising plan, the company said in a statement. It expects to resume trading on Friday.

Goodman Fielder reported an annual loss of $166.7 million in the 12 months ended June 30, on the back of a $300 million write-down in the value of its baking division.

The company has struggled to maintain profitability in the face of rising ingredient costs, while at the same time dealing with a competitive retail environment that forced significant discounting.

The shares rose 1.6% to 76 cents in trading on the NZX yesterday, and have tumbled 58% this year.

BusinessDesk.co.nz

Comments from our readers

On 27 September 2011 at 9:19 am Ravin said:

One cannot lose in companies that supple bread and butter and as sech I invested in this one. Greed that people will buy at any price has been the downfall of its shares and directors and management are equally at fault for not anticipating that if there is enough margin lower cost operators will squeeze you out. Supermarkets/Max bread sell more then the fancied bread. I say stop this bail out.