Key points
- Company's appeal against Federal Court decision unsuccessful
- Subsidiary found to have breached Australian Consumer Law
- Penalty hearing scheduled for early April with uncertainty around size
Full summary
Site Group International Ltd (ASX: SIT) has been suspended from quotation on the ASX at the company's request, pending the release of an announcement regarding the outcome of court-appointed mediation and its impact on SIT's operations, financial performance and position. On 16 August 2024, the company announced that its appeal against the Full Federal Court of Australia's decision had been unsuccessful. The decision found SIT's subsidiary, Productivity Partners Pty Ltd, had engaged in conduct breaching the Australian Consumer Law in proceedings initiated by the Australian Competition and Consumer Commission (ACCC). The High Court of Australia also dismissed the appeal regarding whether SIT was knowingly concerned in that conduct. As this matter now advances to a penalty hearing scheduled for early April, and because penalties are not predetermined, there is uncertainty as to the size of the penalty which may be handed down by the Court. The ACCC's submission proposes penalties that are materially higher than expectations previously provided for in the accounts of the company. An adverse resolution with penalties within the range of the ACCC's submissions will have a material negative impact on SIT's financial performance and position.