Edition:
India

N Brown Halves Dividend, H1 Adj. Pretax Profit Falls


Thursday, 11 Oct 2018 

Oct 11 (Reuters) - N Brown Group PLC ::H1 PRETAX LOSS -27.1 MILLION STG.HY GROUP REVENUE 457.8 MILLION STG VERSUS 453.4 MILLION STG.HY PRODUCT REVENUE 304.5 MILLION STG VERSUS 314.1 MILLION STG.HY ADJUSTED PBT 30.6 MILLION STG VERSUS 32.2 MILLION STG.HY STATUTORY LOSS BEFORE TAX 27.1 MILLION STG VERSUS 27.6 MILLION STG LOSS.INTERIM DIVIDEND 2.83P.GOING FORWARD EXPECT OFFLINE SALES TO CONTINUE TO FALL AS CO FOCUSES ON ONLINE POWER BRAND GROWTH.INTERIM DIVIDEND REDUCED BY 50.0% TO 2.83P.DISAPPOINTED WITH WIDER PRODUCT PERFORMANCE.WIDER PRODUCT PERFORMANCE IMPACTED BY ONGOING DECLINE OF LEGACY OFFLINE BUSINESS AND CHALLENGING MARKET CONDITIONS.EXPECT OFFLINE SALES TO CONTINUE TO FALL AS WE FOCUS ON ONLINE POWER BRAND GROWTH.FULL YEAR EXPECTATIONS ARE UNCHANGED.SEES FY19 PRODUCT GROSS MARGIN: 0 TO -100BPS (WAS 0 TO +100BPS).SEES FY19 PRODUCT GROUP OPERATING COSTS: DOWN 1% TO 3% (WAS UP 1.5% TO 3.5%).SEES FY19 NET DEBT: £450M TO £475M (WAS £425M TO £450M).GROSS MARGIN WAS 54.2%, DOWN 60BPS COMPARED TO H1 FY18.