LandMark White data breach to cost over $7 million
Property valuation and consultancy firm LandMark White have said revealed the data breach from their servers in February will cost the company up to $7 million.
The first sales of shares when re-opened on the ASX this morning were trading at 20¢. At late morning they were trading at 25¢, a 34% drop since its last trade in March when trading was halted.
In a notice to their shareholders submitted to the ASX, LandMark estimated a loss of revenue of around $5 million to $6 million.
They also cited further losses of around $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.
NAB, Commonwealth Bank and ANZ all dropped LMW following the breach which saw around 250,000 individual records and 137,500 unique valuation records stolen and put on the dark web.
LandMark White are set to post a net loss after tax of $2.3 million in the year to June.
LMW's shareholders are set to take the brunt of the hit.
"In order to enable LMW to rebuild its cash reserves, the Broad of LMW do not expect to declare a dividend for FY2019", the submission to the ASX read.
"The Company will be reviewing its position for the re-commencement of dividends at the appropriate time.
Both Westpac and Commonwealth Bank have resumed their services with LMW.
"LMW has secured further support from its corporate bankers to enable the company to trade through its monthly receipt and payment cycles whilst its cash reserves build."
The Board predict a return to normal levels in FY2020, should LMW be reinstated to all key former clients.
