Clive Peeters responds to ASX grilling over excited share price

By Patrick Avenell

Clive Peeters has today been forced to answer questions from the Australian Securities Exchange (ASX) following concerns over the fluctuations of the listed retail group’s share price.

As reported extensively on Current.com.au, Clive Peeters experienced a morale boosting week on the ASX last week, rising from 6 cents to a temporary peak of 22 cents. The company is currently trading at 14 cents – down 5.5 cents from its Friday close.

As a result of this boon, the ASX wrote to Clive Peeters asking if there was any information concerning the company that had not been public. Earlier today, the following answer was posted to the ASX by Clive Peeters company secretary Steven Rowarth.

“No. The company is not aware of any information concerning it which…could be an explanation for recent trading in the securities of the Company.”

Rowarth then refers to the company’s strategic review announcement that was reported by Current.com.au in late October.

The ASX also inquired as to Clive Peeters’ profit position for the December 2008 half year, and whether there would be any significant (greater than 15 per cent) variation from December 2007. Rowarth was unable to give a definitive answer to this questions, and he explained his prevarication thus:

“The very challenging retail conditions affective big ticket discretionary retailers have continued into the December 2008 quarter, impacting sales and margins. The Company is unable at this time to quantify the December 2008 half year result because trading in December is material to the December 2008 half year result.”

Rowarth further notes that based on current trends continuing through until the end of 2008, Clive Peeters is set to record a “nominal operating profit”.

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