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Window Furnishings Australia (WFA) can reveal that Kresta Holdings Limited will be removed from the ASX listing on 1 September 2020 unless the Australian Stock Exchange (ASX) can be satisfied that it’s financial woes are over.
In response to an enquiry sent by WFA, Anjuli Sinniah, a Senior Adviser in Listings Compliance at the ASX said the organisation was profoundly aware of the impact that suspending an entity’s securities from official quotation has on the holders of those securities.
“An entity’s securities will only be suspended when ASX is satisfied based on the information available to it that doing so is in the best interests of the market, whether the suspension has been requested by the entity or imposed by ASX.”
According to the ASX, Kresta’s securities will only be reinstated to official quotation when and if ASX is satisfied that it is in compliance with chapter 12 of the listing rules, including listing rule 12.2, which requires a listed entity’s financial condition to be, in ASX’s opinion, adequate to warrant the quotation of its securities.
“If Kresta’s securities are not reinstated by 31 August 2020 it will be removed from the official list on 1 September 2020 in accordance with ASX’s long term suspended entity policy,” Sinniah said.
Kresta Holdings Limited requested its shares to be suspended from quotation on the 31st of August 2018. At the time it said the reason for the suspension was for a strategic review, including that of its internal inventory management system, and estimated that it would resume listing in 45 days. The shares did not resume trading and since the suspension the company has reported massive losses over the 2017, 2018 and most recently 2019 trading years.
In the most recent announcement dated 27th May 2020, the company revealed it had made a net loss of $7.5M in 2019. This comes on top of a $18M loss in 2018 and a $10M loss in 2017.
The company is on its third set of auditors in just over 12 months having removed Ernst and Young in March 2019 in favour of Mazars Risk and Assurance. The company has again changed auditor to Bentleys Audit & Corporate (WA) in March 2020.
The change in auditors has not changed the outlook for Kresta, with Bentleys’ Partner Chris Nicoloff stating in the 2019 Auditor’s report that the losses and other events have cast significant doubt over the Group’s ability to continue as a going concern. WFA has requested comment from Kresta Holdings on the future of their ASX listing and trading conditions during the Covid-19 pandemic, but no reply has been forthcoming.
