Disappointing trading guidance creates yet more uncertainty

Bapcor Limited (ASX: BAP)

NEW ZEALAND MEDIA RELEASE

Disappointing trading guidance creates yet more uncertainty for Hellaby shareholders

16 December 2016: Bapcor Chief Executive Darryl Abotomey says Hellaby’s trading guidance provided today only serves to provide further uncertainty to shareholders.

Hellaby announced Group Net Profit After Tax is expected to be only NZ$4 million to $5 million for the first half of 2017, excluding the gain on the sale of the Equipment business. Both EBITDA and EBIT are below last year – despite acquisitions that should have boosted earnings.

“We find it extraordinary that the Hellaby Board has provided trading guidance that is below last year and significantly below the trajectory required to deliver the full year forecasts provided in its Target Company Statement - without any explanation to Hellaby shareholders for this underperformance.

“The level of underperformance should make Hellaby shareholders question the Board’s ability to deliver its full year forecasts and the future value of the company.

“Hellaby’s trading guidance reaffirms why shareholders representing over 40 per cent of Hellaby shares have already accepted Bapcor’s offer. The Hellaby Board’s belief it can break up and sell the businesses again highlights the Board’s lack of confidence around earnings outlook and strategy, and only creates further confusion for shareholders.

“We are offering an attractive value and certainty for Hellaby shareholders - $3.60 cash per share. Hellaby shareholders are encouraged to accept now if they want to realise this attractive value for their shareholding.”

ENDS

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