Ardent’s bumpy ride
Firm takes financial hit after poor US results
SHARES in Ardent Leisure slumped yesterday after the operator of Dreamworld warned of a lower payout to investors and negative sales growth at its US bowling centres.
Ardent shares closed 6.57 per cent lower at $1.99 after the company said it expected a second-half distribution of 1¢ per stapled security, taking the full year distribution to 3¢. That compares to 12.5¢ in 2015/16.
The company said the lower return reflected reduced earnings at its Australian business following the Dreamworld accident and the sale of its health clubs division. Four people were killed last October after Dreamworld’s Thunder Rapids ride malfunctioned.
Ardent said like-for-like sales growth at its Main Event bowling centres would be negative in the fourth quarter, but were showing an improvement. The company is reviewing its ten pin bowl- ing and entertainment business in the US and assessing the potential use of 30ha of land around Dreamworld.
The company is expected to report annual earnings of between $73-75 million after previously forecasting a loss at its theme park division of $4 million.
Ardent remains under pressure from investment company Ariadne and property tycoon Kevin Seymour, who want four new directors elected at a meeting of shareholders in September.
Ariadne and its associates, which control about 10 per cent of Ardent, want veteran corporate raider Gary Weiss and Mr Seymour on the board along with two other nominees to begin the process of “restoring wealth” to shareholders.
Ariadne said yesterday’s announcement confirmed that the Ardent board had presided over a “significant loss of security holder wealth and persistent failings in financial and operational performance”.