Adairs pays $66,000 fine after allegations from corporate regulator
Health & Biotech
Link copied to
Australian bedding and homewares chain Adairs has forked out a $66,000 fine after the corporate regulator alleged it had breached continuous disclosure obligations.
The Australian Securities and Investments Commission (ASIC) alleged that Adairs breached its obligations by not updating forecast sales and expenditure figures late last year.
In a release to the market yesterday, the company acknowledged the fine without admitting liability.
“Adairs considers that it complied with its continuous disclosure obligations in the period leading up to its trading update on 2 November 2016.
“The issue of the infringement notice, and compliance with it, is not an admission of liability by Adairs with respect to the allegations, nor is it a finding of any breach of law.”
Adairs shares (ASX:ADH) fell 3 per cent to $1.52 on Friday morning, down from $2.70 highs almost a year ago.
ASIC alleged the company became aware of an almost $10 million downgrade of 2017 forecast figures on September 23 — but that no announcement to market was made until November 2.
“It is fundamental to the integrity of the market that listed entities disclose market sensitive earnings surprises immediately,” ASIC Commissioner Cathie Armour said.
Earlier this week the company provided updated guidance on their current financial position, revising up their sales by $5 million after what they previously described as a difficult year.
“While our YTD results have been pleasing, the key trading periods and promotional events lay ahead in the financial year,” Adairs chief executive Mark Ronan said.