It just gets worse for Wellard

Live exporter Wellard continues to go from bad to worse in its nightmare start to life on the Australian Securities Exchange.

Wellard shares dived 4¢, or 9.5 per cent, to 42¢ today after it issued an update in connection with its second profit warning in just six months as a listed entity. Its December IPO was priced at $1.39 a share.

The Fremantle-based company said it now expects its forecast pro forma full-year net profit after tax to be around the bottom of the $23.5 million to $30 million range disclosed to the market on Friday.

Wellard said it had six shipments scheduled to load and sail before June 30.

It said “greater clarify around expected profitability of those shipments as they get closer to loading, combined with the persistence of the continued margin compression from record cattle prices” would see profit at the lower end of the range.

Wellard also left the door open for a third profit warning before its full-year results are due in August, saying: “Outcomes of some of the remaining shipments may still influence the forecast. A further change to the forecast is therefore possible, particularly given one of these shipments is a large shipment.

“This shipment is expected to load in the next few days. The number of cattle loaded and departure date of the vessel will influence the forecast financials, potentially below the previous range.”

Wellard said it would update the market as soon and the shipments were finalised and loaded. The Mauro Balzarini-controlled company was forced to defend its disclosure practices after the first profit warning in late February.