Why is the BWX share price on ice today?

What's going on with the BWX share price?

| More on:
A dollar sign embedded in ice, indicating a share price freeze or trading halt

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • BWX shares suspended from the ASX at the request of the company, currently frozen at 63 cents per share 
  • The company noted irregularities in its financial reports and has asked for more time to correct these 
  • It is expected that BWX shares will resume trading on 30 September following the release of the company's full-year results 

The BWX Ltd (ASX: BWX) share price won't be going anywhere on Monday.

This comes as the company requested the ASX that its shares be suspended from quotation immediately.

Currently, the personal care products company shares are frozen at 63 cents apiece.

Why is the BWX share price suspended?

The company requested the BWX share price to be suspended as it requires additional time to prepare its full-year results.

Previously, BWX had been scheduled to release its audited FY 2022 results to the market tomorrow.

However, due to irregularities in its financial reports, the company has asked the ASX for the suspension to last until 30 September.

BWX stated that it "anticipates the suspension will cease on it lodging an Appendix 4E and audited accounts with ASX in relation to its FY22 full financial year."

What does this mean?

Management provided some further insight in regards to why it needed more time to collate its FY 2022 results.

It said that "certain revenue recognition issues for FY21 and 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."

This means that BWX could fall short of its previously stated full-year guidance for FY 2022.

Following its trading update and capital raise announcement in June, the company forecasted revenue to be approximately $206 million (before significant items).

FY22 forecast of earnings before interest, tax, depreciation and amortisation (EBITDA) (before significant items) was projected to be around $6 million to $10 million.

And on the bottom line, net profit after tax (NPAT) (before significant items) was forecasted to come at a loss of roughly $10 million to $14 million.

About the BWX share price

Since this time last year, BWX shares have headed on a downhill trend to hit an all-time low of 61 cents on 23 August.

Ultimately, this led the company's shares to register a loss of 88% for the period.

Based on today's price, BWX has a market capitalisation of around $125.99 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Stock market crash concept of young man screaming at laptop on the sofa.
Share Fallers

Guess which ASX 200 stock just crashed 31% on slumping sales

The $1.3 billion ASX 200 stock is getting hammered today.

Read more »

Photo of a happy couple with their new car and car keys.
Consumer Staples & Discretionary Shares

Up 55% this year, why Macquarie believes Eagers Automotive shares can charge higher

Eagers set to capitalise as BYD’s Australian sales surge.

Read more »

Two race cars on a track at sunset.
Consumer Staples & Discretionary Shares

Down 36% in a year, this ASX 300 stock is one to watch

After a major sell-off, this high-performance cooling specialist might be gearing up for a turnaround.

Read more »

Two laughing young women hold shopping bags and ride an escalator up to another level in a Scentre Group shopping centre.
Broker Notes

3 ASX consumer sector shares to buy in July: expert

A leading expert has named its top 3 picks.

Read more »

person with large headphones looking puzzled holding their hand to their chin.
Broker Notes

Does Macquarie prefer Harvey Norman or JB Hi-Fi shares?

Both companies have market-beating long-term track records.

Read more »

Person taking out a slice of pizza from a pizza box.
Consumer Staples & Discretionary Shares

Why now is the time to buy the big dip on Domino's shares

Down 46% in a year, a leading expert forecasts brighter days ahead for Domino’s shares.

Read more »

Three people sit on safe cheering with pizza on table
Consumer Staples & Discretionary Shares

Food fight! Have Guzman Y Gomez shares outperformed Domino's since ASX debut?

Lets find out who’s topping the menu for investors

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Consumer Staples & Discretionary Shares

Here's the Coles dividend forecast from top analysts through to 2029

Can this defensive business provide pleasing payouts? Let’s take a look…

Read more »