ASX-listed company Bellamy's Australia Limited (Bellamy's) has paid a penalty of $66,000 after ASIC issued an infringement notice for an alleged failure by Bellamy's to comply with its continuous disclosure obligations.
The infringement notice was issued following an investigation into matters arising from an announcement on 2 December 2016 by Bellamy's to the ASX stating that the expected revenue for the first half of the 2017 financial year was anticipated to be approximately $120 million and that if current trends in its existing channels-to-market continued, revenue for the second half of the 2017 financial year would be similar.
On 18 October 2016, the board of Bellamy's was informed that the average broker forecast for Bellamy's sales revenue in the 2017 financial year was $368.1 million.
ASIC alleges that by 18 October 2016, Bellamy's ought to have been aware that it was unlikely to achieve market consensus forecasts for the 2017 financial year given its sales performance in the first quarter of that year.
ASIC alleges that by failing to inform the ASX by 18 October 2016 that it was unlikely to achieve market consensus forecasts for the 2017 financial year, Bellamy's was in breach of its continuous disclosure obligations between 18 October 2016 and 2 December 2016.
ASIC Commissioner Cathie Armour said, 'Investor confidence in our markets depends on the timely disclosure of market sensitive information. Listed companies must promptly disclose changes to performance forecasts previously made to the market.'
Details of the infringement notice will be published in the ASIC Gazette.
Section 674(2) of the Corporations Act and ASX Listing Rule 3.1 detail listed companies’ continuous disclosure obligations.
The Corporations Act provides that compliance with infringement notices is not an admission of guilt or liability.
Bellamy's is not, by reason of its compliance with the notice, regarded as having contravened section 674(2) of the Corporations Act.