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Shareholder condemns ‘disdainful’ Stock Spirits
Western Gate Private Investments has criticised Stock Spirits for what it calls a “continuing lack of transparency” and “disdainful” treatment of investors following the firm’s latest trading update.
Western Gate voiced “disappointment” over Stock Spirits pre-close trading update
Western Gate, the Central and Eastern European group’s largest shareholder, voiced “disappointment” over the pre-close trading update, which contained “a lack of disclosure”.
Stock Spirits said its key Polish business performed well last year, bringing the group’s full-year results “in line with expectations”, adding that it is making progress in returning the business to health.
However, the shareholder, which is run by Eurocash CEO Luis Amaral, said Stock Spirits “continues to avoid communicating openly with its shareholders”.
“Stock has made a trading statement on its crucial Christmas sales period… which has no sales data in it,” said Amaral.
“By the time of Stock’s full year results, the market will have had just four sentences of trading update in seven months.”
In 2016 the group pledged to make the turnaround of its Polish business a “primary focus” after price hikes in the market saw its operating profits plummet 22.3% in 2015.
Commenting on this, Amaral continued: “Stock announced its ‘root and branch’ strategic review a year ago but instead of being open with investors on how they are performing against those plans, we get a continuing lack of transparency.
“We believe that the board must address the disdainful way that investors and shareholders in this company continue to be treated.”
Western Gate has been engaged in a prolonged battle with the Stock Spirits board and management for years, citing a number of concerns with regards to the group’s performance, including declining market share in Poland, an “under-performing” share price, and “spiralling” corporate costs.
More recently, the shareholder hit out at Stock Spirits for cancelling its planned investor day in mid-November, opting not to publish a Q3 trading update “in contrast to previous years”, and continuing to exclude two independent non-executive directors, voted in by shareholders, from being full voting members of its committees.
Stock spirits will announce its full-year results on Wednesday 8 March 2017.