This article is from the Australian Property Journal archive
LISTED valuation firm LandMark White is resuming trade after assessing the financial impact from the cyber attack, which has resulted in a loss of revenue in order of $5-6 million.
Following the announcement on 5 February, the company said it has rectified all issues related to the cyber security incident, and subsequently implemented a system with significantly enhanced digital security measures and is working towards achieving ISO27001 (International Information Security Standard) certification in the medium term.
LMW has been reinstated as a panel valuer by three of the four major banks and expects to be reinstated by the final one soon. Additionally, many other lenders have also reinstated LMW as a panel valuer.
As a result of the suspension from bank panels, LMW estimates that this has resulted in a loss of revenue of approximately $5-6 million, with approximately a further $1 million of revenue likely to be lost between now and the date of full reinstatement by the remaining financial institutions and restoration of more normal revenues.
In addition to the loss of revenue, LMW incurred significant costs upgrading cyber security measures. The group said these new security measures will incur higher ongoing maintenance costs but are critical to ensure it maintains an appropriately high level of data security.
Taking into account the lost revenues, expected date of reinstatement of the remaining institutions and additional costs incurred, LMW has forecast a full year net loss after tax of $2.3 million versus the previous guidance of a $2.8 million profit.
EBITDA loss is expected to be $1.5 million compared to the previous guidance of $5.3 million profit and revenue of $43.5 million versus the $55 million.
In order to enable LMW to rebuild its cash reserves, the board do not expect to declare a dividend for FY19.
The firm anticipates that FY20 will see a return to more normal levels of revenue and profit and will provide further guidance in the future.
As at 30 June 2019, LMW will be reviewing the carrying value of intangible assets, this may result in an impairment charge in FY19. Any such impairment charge is non-cash and has not been reflected in the latest guidance.
Chairman Keith Perrett thanked the staff during this difficult time.
“I would like to thank our loyal staff who have remained with LMW over this extremely difficult period, a time where the integration of LMW and Taylor Byrne has continued and developed into a cohesive group working to ensure LMW has the capacity to provide our clients with the best possible service with property valuations and advice to our clients.
“I would also like to thank Timothy Rabbitt, ex CEO of Taylor Byrne, who stepped in as LMW’s Acting CEO at this most difficult time. I look forward to the normalisation of revenue streams after this incident and particularly the opportunity that has stemmed from our building a more robust security framework which has put LMW in a good position to develop and seize further growth opportunities.” Perret said.
Australian Property Journal
