RE: 10p share5 Jul 2022 13:13
The company is involved in litigation with an insurer. According to 'Sharesmagazine.co.uk,' "total contingent liability is £65 million." The figure was previously £29 million. This is a huge amount for a company of this size. At least N Brown is in profit but still if they have to pay anything near £65 million they will do an equity raise in my opinion. Placings are discounted so will be probably be at a 40% discount in my opinion. SP could go down to 10p.
I like N brown and I like what they are doing for the plus size movement but there are too many issues ahead for them.
Their revenue has declined and there is no sign of it improving.
Decline in revenues
Date / Millions
03/03/2018 = 922.20
02/03/2019 = 914.40
29/02/2020 = 574.20
27/02/2021 = 489.30
26/02/2022 = 487.00
I don't like their websites. I went on their Home Essentials website and the product display just wasn't to the standard that the consumer expects these days in my opinion. This is marketing so can be improved, but it really should be great already.
Their websites offer credit for the customers and that industry might be reformed, so there is further risk there.