Godfreys lists on the ASX; ACCC to appeal hair straightening decision: Midday Roundup

Vacuum cleaner group Godfreys will today list on the Australian Securities Exchange in a $78 million float.

Established in 1931 in Melbourne, Godfrey’s has grown into a business with 209 stores and is the market leader in the $1.3 billion cleaning products category.

John Johnston, the 96-year-old co-founder of Godfrey’s, is the largest shareholder in Godfreys and will retain his 20.2% stake in the business following the float. Chief executive Tom Krulis will retain his 8% shareholding, while investment banks Nomura and Investec are exiting the business.

Godfreys will issue 28.2 million shares at a price of $2.75 per share, which represents a forecast earnings ratio for the 2015 financial year of 9.05. The total number of shares on issue following the float will be 40.3 million.

ACCC to appeal hair straightening decision

The Australian Competition and Consumer Commission is appealing a decision by the Federal Court to dismiss part of its case against haircare products importer Dateline Imports.

Dateline Imports was fined $85,000 in November for making false or misleading representations about the level of natural keratin in Keratin Complex Smoothing Therapy, which it imported between June 2009 and November 2010.

But the court dismissed several other allegations made by the ACCC, including that Dateline made false and misleading claims that the product did not contain toxic or dangerous chemicals, did not contain formaldehyde, was safe for its recommended use and complied with worldwide health and safety regulations.

In a media release published today, the ACCC said it will continue to fight the case because it is concerned consumers may have been exposed to formaldehyde.

Shares down on open

Aussie shares have taken a hit this morning, rocked by weak local economic data.

Tristan K’Nell, head of trading at Quay Equities, said local investors are concerned by the latest instalment of Westpac-Melbourne Institute’s index of consumer sentiment.

“[The index] hit a three-year low, falling by 5.7% to an index reading of 91.1 points, its lowest reading since August 2011,” K’Nell said in a statement.

“A combination of factors including low wage growth, high unemployment and negative sentiment towards Australian economic growth have all combined to see respondents very concerned on the outlook for the Australian economy.”

The S&P/ASX 200 benchmark was down 55.4 points to 5227.3 points at 12.02pm AEDT. On Tuesday, the Dow Jones closed 51.28 points lower, down 0.29% to 17801.2 points.