Landmark White seek to rebuild value for shareholders

The besieged national property valuer Landmark White is seeking to raise $5 million from shareholders to restructure the business.

The company is suspended from trading on the ASX after two data breaches earlier this year.

Several financial institutions suspended their valuations with the firm, forcing its management to come up with its restructure.

Landmark White does not expect its customer workflows to return to their previous levels.

It has been reported it has been hit by an exodus of staff from its Sydney business.

About 20 staff have left the franchise business to work at Ray White Commercial. 

LandMark White is comprised of the listed corporate head office with under 400 staff and an independent franchise network.

“LMW’s current financial position is such that, in the event that the minimum raise amount is not raised under the offer, the offer will not proceed and the company will not be able to continue meeting its financial obligations when they fall due,” the company said in a prospectus lodged to the ASX at 5pm Friday.

Landmark’s offer, priced at 8c a share, is aimed at raising up to $5.45m and is partially underwritten up to $3 million.

It has appointed Enrizen Capital as the lead manager for the raise. Landmark chairman Keith Perrett said the board had developed a leaner, optimised business model.

“While LMW is now in an operating position to execute a restructuring of the business to rebuild value for shareholders, the company requires additional capital in order to deliver the restructure, optimise the business and continue its operations,” he added.

Landmark is saying it has been propped up by the good grace of its lender, Westpac-owned St George.

“Due to LMW’s financial position, it is … in breach of terms of the facility agreement with St George Bank in respect of both the overdraft facility and bill acceptance facility (facility agreement).

“It is likely that, given LMW’s current financial position, LMW will be in breach of certain terms of the facility agreement until such time as its financial position has returned to the required levels of profitability, which may be a period until June 30, 2020.”

Landmark’s full-year numbers have been hit by the twodata breaches.

The company has posted a net loss after tax of $15.1 million for the year ended June 30, with the breaches wiping out between $6m to $7m of revenue.

It posted a profit of $4.1 million for fiscal 2018.