BWX Ltd (ASX: BWX) is the Melbourne-based owner of skincare products including Sukin. This morning BWX provided a trading update for its 2019 financial year.
In an ASX Filing, BWX said it expects to report normalised EBITDA broadly in-line with 2018 at $40.3 million (click here to learn what EBITDA means).
“There has been significant disruption and loss of business momentum at the beginning of FY19 due to the now failed management buyout (MBO) process,” BWX CEO Myles Anceschi said.
“The MBO diverted significant management time and resources, and several key projects were delayed,” he added.
As Rask Media reported in May, BWX received an unbinding takeover offer from Bain Capital and directors John Humble and Aaron Finlay. In September, BWX’s board revealed the buyers would not lodge a binding proposal.
Since the offer was made its been anything but smooth sailing for the skincare and wellness products company and its shareholders. The company’s share price has fallen from over $8 in January to today’s price of $3.34, according to Google Finance.
In that time, it was revealed BWX might also face a lawsuit from Waterloo Capital Partners in the US. Waterloo was an adviser to the company.
Due to the failed management buyout (MBO), Mr Anceschi says several key projects were slowed, including the delay in its multi-brand selling platform roll-out, relocation and consolidation of warehouses and rebranding.
Now the company says it will spend 2019 following up on its growth prospects.
“We have re-energised the team post the MBO process, and momentum is building,” Anceschi said.
As a result of the delays, Anceschi acknowledged the results for 2019 will be skewed towards the second half. “After a period of disruption and critical platform work that will impact 1HFY19, management are encouraged by the outlook for 2HFY19 and beyond.”
BWX will hold its Annual General Meeting (AGM) this Wednesday, October 31st.
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