Landmark wears $7m scar from cyber attacks

Cyber attacks seem likely to cost property valuations platform Landmark White as much as $7 million for the full year.

LMW shares are expected to return to trading tomorrow and last traded at 38c. Picture: istock.

Property valuations platform Landmark White will take a hit of as much as $7 million in revenue for the full year after a series of cyber attacks that prompted the departure of its chief executive earlier this year.

The company is in a trading halt while it counts the cost of the incidents, and told the market yesterday it estimated a loss of revenue of $5m to $6m due to the disruptions, and a further $1m likely lost before full reinstatement by financial institutions.

For the full year, Landmark forecast a loss of $2.3m, from earlier expectations of a $2.8m profit.

It said it had been reinstated as a panel valuer by three of the four major banks and expected to be reinstated by the final one soon, setting it back on the path to growth for the following year.

“Provided that LMW is reinstated to all key former clients, the board of LMW anticipates that FY2020 will see a return to more normal levels of revenue and profit and will provide further guidance to the market following the close of FY2019,” the company said.

Landmark said it had invested significantly in upgrading its cybersecurity measures, which would be more expensive ongoing but were “critical to ensure we maintain an appropriately high level of data security”.

Its forward guidance was unveiled in tandem with its half-year results, where the company posted a 92.1 per cent drop in profit to $162,000 and pointed to the property downturn as a key contributor.

“The downturn in the residential property market, largely due to APRA tightening credit and the impact of the banking royal commission, has adversely impacted revenues and hence profits,” the company said. “This was partially offset by the acquisition of Taylor Byrne, effective October 1 last year, but also negatively impacted by one-off acquisition costs of $500,000.”

The valuer said cost savings would be delivered in the second half as synergies were realised and it had obtained short-term funding to allow it to pay its debts and build the business back after the data breaches, which had been having an impact on revenues since February.

Chief executive Chris Coonan left the company during the melee after 15 years with the company and three years in the top job, citing major reputational challenges.

“LMW is now recovering from a significant challenge to our business. As such, the company’s senior leadership is acutely aware a renewed look at our operations and our culture is imperative to ensure we are a reliable supplier of first-class services to our valued clients,” it said at the time.

LMW shares are expected to return to trading tomorrow and last traded at 38c.