Friday 10th February 2017
|Text too small?|
Trilogy International, the skincare and home fragrance company, said it continues to comply with continuous disclosure rules in response to a query from the New Zealand stock exchange after its shares took a tumble.
In a letter to Trilogy, the NZX sought an explanation noting Trilogy's shares dropped to $2.48 on Feb. 9 from $3.39 on Jan. 9, a fall of 71 cents or 22 percent. On Friday the shares were up 1.6 percent at $2.55.
Lindsay Render, the chief financial officer for Trilogy, responded that it continues to meet its obligations.
Hamilton Hindin Greene director and client adviser James Smalley said the shareholder base is significantly bigger after its capital raising in mid-2016 and the share price may be getting pushed around by a few short-term investors opting to sell down their positions. Even after the capital raising "it's still a relatively thinly traded stock ... and a simple thing like that can affect the share price in the very short term," he said.
Smalley noted the company's financial year ends March 31 and investors will be watching for any market updates ahead of its May reporting date. "The proof in the pudding will always be in the result," he said. Trilogy's brands include Ecoya candles, Trilogy and Goodness. It also owns CS & Co, the country's largest independent importer and distributor of fragrances and toiletries, which it bought in August 2015.
In November, Trilogy confirmed earlier guidance for 2017 revenue of $100 million to $110 million, a gain of between 20 percent and 32 percent over 2016's $83 million of sales, and earnings before interest, tax, and depreciation of $19 million to $21 million, from $16.3 million in 2016.
No comments yet
MARKET CLOSE: NZ shares up, led by Fisher & Paykel Healthcare, Ryman
NZ dollar heads for 0.1% weekly fall with jittery markets over weaker yuan
Xero quits developing in-house US payroll product, signs up with Gusto
Farming, horticultural groups seek flexibility in zero emissions plans
Hawaiki Submarine Cable begins commercial operations
Net migration falls in June, remains historically high, Stats NZ says
Commerce Commission files proceedings against Wilson Parking, seeks penalty
SeaDragon's funding transaction unfair but positives outweigh negatives, say independent advisers
Morningstar cuts earnings forecast for Z Energy but maintains hold rating
July 20th Morning Report