Corporate: Smiles Inclusive slashes full-year loss to $4m, boardroom fight club heats up
The last 48 hours at Smiles Inclusive (ASX:SIL) have involved a third notice to remove the board, the firing of an executive, and another financial downgrade.
After its forecast full year $2.3m profit turned into an anticipated $500,000 to $1m loss in January, the board is now saying the loss will hit at least $4m.
Shareholders have been selling off the stock, which is now down 86 per cent this year.
The company blamed poor debt collection, slow operations at its mobile sites which had seen many vans remain empty and unused, and legal claims against vendors as reasons for the poor financial performance.
On Wednesday Smiles said it had terminated a contract with former CEO Mike Timoney following the completion of an investigation into his behaviour at the company which has since turned into a lawsuit.
And today, former chairman David Herlihy and Timoney have issued their third requisitioning notice to spill the board after launching the first in March.
The first only proposed removing two directors, Tracy Penn and David Usasz, and adding Joao Camacho.
But this notice proposed removing recently appointed director Peter Evans as well and appointing Mark Ward, Hugues Amoyal and Vincent Fayad as well as Camacho.
The company says Evans will resign if the rebel shareholder group succeeds. The group holds just under 19 per cent of the register.
Smiles Inclusive said it was considering the requisitioning request and was open to arranging a meeting in addition to the one already scheduled for May 22.
Japanese customers of hardwood woodfibre processor Midway (ASX:MWY) will pay more for their product, with prices rising to $US182.25 per bone dry tonne for the rest of the year compared to $US180.50 in the first quarter. Japan accounts for 30 per cent of Midway’s sales. Managing director Tony Price says the new price is roughly in line to what Midway’s Chinese customers are paying.
Potash explorer Kalium Lakes (ASX:KLL) have appointed mining industry veteran Stephen Dennis to its board. Dennis is chairman at Graphex Mining (ASX:GPX) and Heron Resources (ASX:HRR) and his resume includes positions in MIM Holdings and Brambles.
Dennis replaces Brendan O’Hara who is standing down after three years of service.