BWX finally ready for its close-up

Company News

by Glenn Dyer

D-day for stricken Melbourne-based makeup and lifestyle company BWX (ASX:BWX), which has finally set a date for producing its much delayed 2021-22 accounts three months late.

BWX told the ASX on Monday that it “expects the audit of the FY22 financial statements to be completed by Monday, 28 November 2022.”

“Accordingly, the Company expects to release its FY22 audited financial statements to the market on Monday 28 November 2022 and anticipates that ASX will lift its suspension from trading on Tuesday, 29 November 2022.”

BWX had advised on October 28 that its audited full year accounts for financial year were expected to be released in mid-November.”

That didn’t happen, just as two previous deadlines set by the company, were not met.

The target of late October had been set after BWX announced on September 28 that its audited full year accounts for financial year 2022 which were expected to be released by the end of October 2022, had been further delayed.

“BWX advises that this timeline has been extended, with the release of audited accounts – including certain revenue recognition issues for FY21 and 1H FY22 and the likely impairment of intangible assets – expected in mid-November 2022.

“The Board considers it imperative that the audit and any adjustments are completed accurately, which necessitates additional time,” BWX said in the September statement.

“Given the delay in the release of the FY22 audited accounts, BWX proposes to defer its Annual General Meeting to after 30 November 2022, to a date to be advised in due course.”

The shares last traded at 63 cents when trading was suspended at the company’s request after the close on August 26. The closing price compares to the year’s high of $5.56.

BWX asked the for suspension after it emerged the company’s finances were in a state of confusion and was facing the possible restatement of earnings for the year to June, 2022, and the one prior.

The group shocked the market in June by slashing its earnings forecasts, said on August 26 that it may not meet the downgraded forecasts for the 2022 financial year that flagged a loss of up to $14 million. The shares dropped 40% after this announcement.

BWX advised on August 26 that it is not in a position to issue its audited full-year results for fiscal 2022, which were due to be released in late August, before the deadline for June 30 balancing companies to report their full year results.

“BWX requires additional time to prepare the company’s appendix 4E due to certain revenue recognition issues for FY21 and 1H FY22 and the likely impairment of its intangible assets to a level significantly below their carrying value as previously foreshadowed to the market on 28 June 2022,” it told the ASX.

“These matters mean the company is currently unsure whether or not it will meet its full-year guidance for FY22, and the company may need to restate its results for the FY21 and 1H FY22 financial years.”

The market, it seems, will know next week.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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