MOSB.L Share News (MOSB)

LONDON (Alliance News) - Shares in Moss Bros Group PLC plunged early Wednesday after it issued a profit warning for its recently begun financial year, slashing its dividend in the process.

Moss Bros shares were trading at 42.00 pence each on Wednesday, down 28%. As recently as May last year, they were trading as high as 120.00p each.

Moss Bros is expecting profit for its current financial year, which ends on January 26 next year, to be "materially lower" than current market expectations, with over 10 months still to go.

As a result, the final dividend for its most recently ended year, which finished on January 27, will be 1.97 pence per share, meaning a total of 4.00p, down from the prior year's total return to shareholders of 5.89p.

The men's tailoring company said that, due to a consolidation of its supplier base in the face of a weak pound, it has had supply issues, affecting sales in all retail channels, and this will continue until "late spring".

Hire sales are likewise challenging, though its peak period is still to come, and thus Moss Bros' outlook in this segment "remains prudent".

Lastly, the reduced footfall experienced towards the end of December has continued due to the more cautious consumer environment.

Chief Executive Brian Brick commented: "In common with many UK retailers, the year ahead looks like being a very challenging one and we have taken action early to be sure we protect the underlying strength of the business.

"We do believe continued investment is essential to ensure we retain a sustainable point of differentiation and that we leverage our distinct position on the high street."