Ted Baker PLC Update on profit expectation for Year 18/19 (2068R)
27 February 2019 - 6:01PM
UK Regulatory
TIDMTED
RNS Number : 2068R
Ted Baker PLC
27 February 2019
27 February 2019
Ted Baker Plc
("Ted Baker" or the "Group")
Update on profit expectation for the year ended 26 January
2019
Ted Baker, the global lifestyle brand, updates on profit
expectations for the financial year ended 26 January 2019 ("Year
18/19"). Profit before tax is now expected to be in the region of
GBP63m; this is before previously announced costs associated with
the ongoing independent external investigation, exceptional costs
relating to the previously announced debtor balances owed by House
of Fraser and the acquisition of No Ordinary Shoes Limited and No
Ordinary Shoes USA LLC and other non-cash impairments relating to
retail assets. The net borrowing position for Year 18/19 remains in
line with prior expectations.
Pre-tax profit for the Year 18/19 has been adversely affected by
three non-cash impacts:
1. Foreign exchange movements in the final week of the financial
year, primarily GBP/USD and GBP/EUR, have resulted in a
mark-to-market profit impact of approximately GBP2.5m relating to
the translation of inter-company balances;
2. As previously reported, we have upgraded our systems and made
process enhancements during the year. These systems upgrades have
allowed us to identify additional product costs of approximately
GBP2.5m that arose during the second half of Year 18/19. We are
confident the systems upgrade now provides robust controls to
prevent a recurrence; and
3. The recent systems and warehousing transitions in Asia and
the US, as well as a more prudent view on aged stock, have resulted
in an unanticipated write-down in the value of inventory of
approximately GBP5m. Ted Baker remains fully committed to driving
improvements in the net working capital to sales ratio and will
provide an update at the full-year results presentation.
Ted Baker will announce its full year results on 21 March
2019.
This announcement contains inside information.
Ted Baker Tel: +44 (0) 20
7255 4800
Lindsay Page, Acting CEO
Charles Anderson, Finance Director
Phil Clark, Commercial Director
Hudson Sandler Tel: +44 (0) 20
7796 4133
Alex Brennan / Hattie O'Reilly / Nick
Moore
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements.
These forward-looking statements include matters that are not
historical facts or are statements regarding the Group's
intentions, beliefs or current expectations concerning, among other
things, the Group's results of operations, financial condition,
liquidity, prospects, growth, strategies, and the industries in
which the Group operates.
Forward-looking statements are based on the information
available to the Directors at the time of preparation of this
announcement, and will not be updated during the year. The
Directors can give no assurance that these expectations will prove
to have been correct. Due to inherent uncertainties, including both
economic and business risk factors underlying such forward-looking
information, actual results may differ materially from those
expressed or implied by these forward-looking statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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