Melbourne-based beauty products group BWX has laboured mightily but once again failed to live up to its own promises to produce audited accounts by the end of November.
The maker of natural skincare brands Sukin and Adalou Naturals, backed by Andrew Forrest, has again delayed releasing its full-year results.
BWX had promised a full update in a statement on November 21 when it told the market:
“The Company can now confirm 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.”
Yesterday it failed to meet that promise and instead revealed more delays in the new update.
“The Company confirms that the key parts of the audit of the FY22 financial statements, have been finalised including the revenue recognition issues for FY21 and 1HFY22 as well as the impairment of intangible assets.
“The Company advises that it has engaged strategic advisors to assist with procuring additional debt funding, which will allow BWX to execute its restructure plans, address its rundown of inventory and continue the sale of its non-core assets in a timely manner. While this process is well advanced, it will take time to evaluate the offers received.
“Until that process is further advanced and certainty of funding is secured, the Board is unable to finalise the FY22 audited financial statements. The Company confirms that its principal bank lender remains supportive. Accordingly, the Board has made the decision to further delay the release of its FY22 audited financial statements”
In other words, BWX can’t produce the accounts without finding a new source of financing – from asset sales, selling off surplus stock or a share issue – despite the claim its main bank maintains its support for the company.
On top of all that – or perhaps as a result of it – the company has lost its chief financial officer because of ill-health.
BWX said the “resignation of Group Chief Financial Officer (CFO), Ms. Efee Peell is effective today.
“Ms. Peell commenced with BWX Limited on 23 March 2020. After an extended period of leave for health reasons, Ms. Peell has resigned to focus on her recovery. The Board thanks Ms. Peell for her contribution to BWX and wishes her well for the future.”
“While the Company has commenced an executive search for Ms. Peell’s permanent replacement, Mr. Birol Akdogan has been appointed interim Chief Financial Officer, effective today.
Mr. Akdogan is an experienced CFO with more than twenty-years of executive and senior management roles in finance in listed Australian companies. He has an excellent record of change management and implementation of control-based systems.
“Most recently, Mr. Akdogan was General Manager, Group Finance at Super Retail Group. Prior to that, he served as the CFO and CEO of Murray River Organics, after more than a decade of senior finance roles at global healthcare manufacturer, Ansell Limited.”
BWX shares remain suspended at 63 cents.
