ABC Learning Centres' share price plunged 42.8% yesterday, after analysts downgraded the company amid growing concerns whether it can meet profit forecasts.
Yesterday, almost 157 million shares were traded, representing almost a third of the company’s issued shares.
ABC’s shares had closed a day earlier at $3.74 when the company reported a 41% fall in net profit after tax to $37.1 millionas a result of weak performances in its
Yesterday, the company’s share price closed $1.60 lower at $2.14 – which is an improvement considering at one stage during the day, ABC’s shares were fell to as low as $1.15.
ABC’s 52-week high share price was $7.66.
So far, analysts from
And in an urgent response, ABC’s said it is in compliance with all these financial covenants and confirm that the banking covenants do not include a market capitalisation or share price covenant.
“The directors reiterate the company is trading profitably and in line with the guidance issued,” the company said in a short statement.
In December last year, ABC completed a three-year syndicated loan facility for $1.43 billion with ANZ, Commonwealth Bank, National Australia Bank and Westpac.
Australian Property Journal
