By NZPA
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Thursday 5th September 2002 |
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Vertex shares, which were trading today down 9c at $1.29, have lost 31 percent of their value since Monday. The shares were issued at $2.05.
The exchange's market surveillance panel is investigating whether Vertex complied with listing rules, relating to the supply of relevant information, after the company's announcement yesterday.
Vertex warned of a 15 percent drop expected on the prospectus forecast of $5.2 million in earnings before interest and tax (ebit) for the six months to September 30.
It cut the full-year ebit forecast of $11.2 million by 10 percent.
The NZSE has also referred its concerns to the Securities Commission "as yesterday's announcement by Vertex may cast doubt upon the accuracy of the forecast financial information presented in the investment statement and prospectus dated June 7", the exchange said in a statement.
Vertex blamed poorer than expected sales and cost problems in its Hamilton-based Technical Injection business.
Richard Burton of brokers Forsyth Barr Frater Williams said confidence in the stock had been eroded.
"The market's been disappointed," Mr Burton said.
"Vertex had a forecast that was above what its traditional businesses made in the past, and it's the new part that they've been expanding into that hasn't performed.
"The problem is it's only a few months since the forecast was made. It will take one or two results showing improvement before the market trusts the company again," he said.
"The other problem there is when you have a stock with 100 percent free-float like Vertex, there's no major shareholder. When all the shareholders want to get out at the same time it can mean the stock gets oversold," he said.
Vertex emerged from Carter Holt Harvey's plastics packaging business. Its most recognisable products include containers for Tip Top brand ice-cream and Fresh 'N Fruity yoghurt.
The company's shares listed in July having raised $61 million.
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