ASX-listed print business Ovato has appointed voluntary administrators, advising that “ongoing volatile market conditions, the increased cost of raw materials, and legacy cost issues have continued to impact Ovato, leading to the difficult decision to appoint Administrators.”
Ovato has appointed Chris Hill, Ross Blakely and Ben Campbell of FTI Consulting as Voluntary Administrators, effective immediately.
“The Administrators intend to trade the company on a business-as-usual basis, while they conduct an independent assessment of the financial position and ongoing viability of the business,” Ovato told the ASX.
“As part of their role in seeking to maximise the chances of the company exiting the Voluntary Administration process in an orderly fashion, the Administrators will shortly commence a public sale and recapitalization process.”
Trading in Ovato shares on the ASX was suspended this morning and will remain suspended during the administration period.
In February, 2022, Ovato posted $17m H1 profit after selling its marketing & magazine distribution businesses.
