Quick-service chain Oliver’s Real Food was suspended from trading on the ASX on Friday after the business detailed its half-year report, which was determined to be inadequate by the securities exchange.
According to the ASX, Oliver’s is in breach of Listing Rule 12.2, which states that an entity’s finances must, in the exchange’s opinion, be “adequate to warrant the continued quotation of its securities and its continued listing”.
The suspension, which will continue until Oliver’s is able to prove its financial stability to the exchange, came after the chain showcased a 31.8 per cent drop in revenue to $12.2 million for the six months to 31 December, and a net loss of $1.8 million – down 48.9 per cent.
The figures followed a total loss of $17.5 million during FY20.
The Oliver’s board have requested the chain’s management develop a restructure plan which will bring down overheads and fixed costs, while providing the capacity needed to take up growth opportunities as they arise.
“Management have already made significant progress with this very comprehensive exercise and we anticipate the results of this planning will be made available during March 2021,” the business wrote in its report.
Last week, the business’ chief executive Tammie Phillips told shareholders about the changes that would soon be coming to Oliver’s business model.
“There will be significant changes to the operating model and overhead,” Phillips said.
“We are underway with simplifying the business structure to deliver sustainable cost reductions while creating a more effective and agile company.”