Australia's Simonds falls on flagging earnings headwinds, mulls capital solution

Simonds

07/11/2022 01:35

** Shares of homebuilder Simonds Group  SIO.AX  fall as much
as 12.1% to A$0.145, their lowest level since May 26, 2016
    ** Simonds says it is considering a 'capital solution' to
help the company through the ongoing 'adverse trading period' 
    ** Business has been hit by rising construction costs and
labour shortages, exacerbated by prolonged wet weather,
flooding, supply shortages, Simonds says, with the housing
market already in distress due to interest rates at a nine-year
peak  urn:newsml:reuters.com:*:nASX7HyNXz  urn:newsml:reuters.com:*:nL4N31W006 
    ** Firm did not specify details on the capital solution but
said an independent board committee is looking into it, and that
its major shareholder has given in-principle approval
    ** Board is confident that additional funding will allow
Simonds to continue to operate strategically during this adverse
period - SIO 
    ** Stock on its worst intraday session since Oct 21
    ** Trading volumes hit 10 times the 30-day average, with
189,000 shares traded so far
    ** SIO down 58.2% YTD, as of last close 
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))