The head of troubled rural services business Elders
(ASX:ELD) has denied misleading shareholders ahead of the company's recent profit downgrade.
Elders chief Malcolm Jackman has been under fire since his company flagged a full-year loss of between $8 million and $14 million last week, compared with the original target of a $55.7 million profit.
News of the profit downgrade sparked a big sell-off in Elders stock, which plunged more than 45% in a single day.
The downgrade came despite Mr Jackman telling investors on May 17th that the company’s turnaround plans are gaining momentum.
When questioned about that statement on Sky Business, Mr Jackman denied that Elders was misleading people on the way through.
Elder’s posted a $466 million loss in the year to September 2009.
