Securities of the embattled franchisor, Retail Food Group Ltd (ASX: RFG), are under a trading halt as on February 28, 2018 while the auditors have been unable to close the matter in relation to the December-half accounts before February 28. The auditors are yet to report on the half year results and this led the group requesting for a halt in trading of RFG securities. The market speculates this to be linked with auditors’ concerns on the accounts and various write-downs.

RFG expects the auditors’ report to be out after March 01, and the shares have a probability of getting suspended in case half-year results are not lodged by March 1.

The group has indicated for profit downgrades in the last couple of months based on the softness in trading and negative publicity in relation to the way the group handles its franchisees. Primarily, RFG expects its statutory net profit for the six months ended December 31, 2017 to be materially lower than the result reported in the previous corresponding period at the back of the challenging trading scenario.

The stock is under a lot of attention specially by shareholders with long-term holding position. RFG has been down 57.5% in last six months with a 2% rise witnessed in last one month (as at February 27, 2018).

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