RE: Shorts6 Feb 2024 14:06
Tenodera, 4 post wonder, work it out will you.
"Group Revenue down 23.5% on prior year and impacted by the challenging consumer retail market, unseasonal weather, as well as the underperformance of our Wholesale segment. Statutory profit before tax of £3.3m (H1 23: £(17.7)m loss) due principally to the sale of Intellectual Property in the APAC region, offset partially by a non-cash impairment charge of £10.2m. Softer revenue performance has impacted underlying profitability and resulted in an Adjusted loss before tax of £(25.3)m (H1 23: £(13.6)m). Progress on turnaround programme designed to position Superdry for long-term success and which focuses on improving efficiency, driving simplification, and establishing a target operating model. Work to rightsize our operating cost base set to deliver in excess of £40m in savings this financial year, ahead of our initially stated target of £35m and with more than £20m achieved in H1, as we continue to prioritise driving forward our cost reduction agenda. HY 24 inventories of £130.9m, down 24.2% on the same period last year with FY 24 closing inventory projected to reach c.7m units, down from a peak of c.18.9m units at FY 19. Further action taken to support the balance sheet with funds received, post half-year end, from IP joint venture and disposal of assets in South Asian region for £28.3m, net of fees and taxes. Secondary lending facility agreed in August for up to £25m with Hilco Capital. Cash management remains a critical focus area for the business and we retain a number of mitigating actions to improve liquidity if required including, but not limited to, additional brand rights sales in non-core territories and the clearance of aged inventory at accelerated rates. Milder weather and heavy discounting across the sector impacted Christmas trading and, consistent with our December update, we expect full year results to reflect the more challenging environment seen to-date."
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