Aussie Laundry Marked for Sale
The Spotless Group, Melbourne, Australia, recently announced that it plans to sell its laundry division, which could raise more than $650 million, according to analysts cited in news reports.
The disclosure came as the company affirmed year-to-June earnings guidance in the wake of a recent selloff of its shares, which promoted a query from the Australian Securities Exchange.
The company said earnings are “unlikely to differ materially from its present earnings guidance,” for the year to June, which was for flat earnings before interest, depreciation and amortization with the net profit to be down 10%, the reports said.
Also important was the disclosure that Spotless could offload its laundries unit, which generates about 10% of group revenues, but also has the highest margins (around 28%) of any of the group’s businesses. In any event, revenue growth remains low, the analysts said. Click here for details.