Western Australia-based livestock exporter Wellard Limited has breached banking covenants for the third time in six months. In a regulatory announcement Wellard said that it had breached the agreements relating to its working capital facility and secured loans, and that it was working with its lenders with a view to achieving a waiver or amendment of the relevant financial covenants. Wellard’s share price fell by about a fifth to 21¢ on the news, compared with a flotation price of A$1.39 when Wellard was listed on December 10, 2015, even though the company has operated for more than 30 years, shipping dairy and beef cattle, sheep and goats around the world.
The exporter is now worth just A$114m, compared with a A$556m valuation at flotation. Managing director Mauro Balzarini said a financial loss was expected for the first six months of the current financial year, but that improving trading conditions were expected to produce a profit in the second half of the year.