RE: Trading Update17 Mar 2025 08:28
Not sure how much buybacks can prop this IMO:
Within the context of the market environment and following the appointment of Tom Vecchiolla in January to lead our US Sector, we reviewed our US operations and are embarking on a restructuring to support future growth, building on our core capabilities in the US and leveraging incumbent positions across the Group. As a result of these actions and the assumption of a higher discount rate we expect to take a goodwill impairment charge on the US business of c.£140m at year end.
In addition, against the backdrop of challenging US market conditions and as part of our year-end balance sheet review process, we have identified a number of one-off, largely non-cash charges and provisions primarily relating to inventory and cost recovery in our legacy US operations. Around £25-30m is included in the updated underlying profit guidance for the year end and c.£35-40m we expect to be reported through exceptional items. The finalisation of all charges will be completed during the year-end audit and accounts process.