AusPharm held up by new IT July 14, 2006 That's its story anyway. And it's sticking with it, no matter what the cynics say.
HEALTH mentcare company Australian Pharmaceutical Industries has been forced to reject claims a trading halt which it called ahead of a profit announcement, originally scheduled for today, was due to an error in collating revenues.
API called for the trading halt on Wednesday, saying it was having IT problems and sparking concerns over its results, which it has now postponed.
UBS analyst Andrew Goodsall told clients yesterday the trading halt may in fact be earnings-related.
"We understand that IT problems have been encountered in some states with net and gross revenues captured differently," Goodsall told clients.
"The glitch has not impacted day-to-day trading. But we have not seen a precedent for a 48-hour trading halt of this nature, implying it could be an issue of broader disclosure.
"The natural conclusion is earnings risk but we do not rule out some level of corporate activity either."
A spokesman for API ruled out Goodsall's specific claims and would not be drawn on whether the trading halt was in some way linked to earnings.
API Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
