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Greencross dropped from benchmark ASX200

Vet care and pet services group Greencross has been removed from the benchmark ASX200 index after its share price fell 37 per cent in 2018.

The company, which has been expanding its integrated model of having veterinary clinics in its retail pet stores, has been dropped from the index of the top 200 companies on the Australian Securities Exchange along with Genworth Mortgage Insurance.

They will be replaced by agribusiness company Elders Limited and waste management and recycling operator Bingo Industries from September 24.

Greencross, the largest veterinary business in Australia and New Zealand, posted a net profit for the year to July 1 of $20.66 million, down was down 50.9 per cent, as a result of a previously flagged $22.8 million in impairments.

Last month, the company said it had 54 “integrated sites”, equal to almost a quarter of its store network, but those integrated stores had shown 8.5 per cent like-for-like sales growth compared with just 3.8 per cent for standalone sites.

At Thursday’s close, Greencross shares shares were $3.98, down $2.50, or 37 per cent, from January.

Additionally Retail Food Group is being removed from the ASX300 index, likely as a result of the financial difficulties the company has faced due to ‘franchise sentiment and engagement’.

Shares in RFG fell by as much as 12 per cent following its earnings announcement earlier this week, having reached 48 cents at 1130 AEST.

Online marketplace Kogan will be added to the ASX300 after its share price reached a high of $9.85 per share in March 2018, after floating around $1.60 per share for several years.

– AAP

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