- Prachi Singh |
The board of directors of the Global Brands Group has declared that based on its preliminary assessment of the latest unaudited consolidated management accounts of the group, it expects the company to record a net loss of between 70 million dollars and 75 million dollars compared with a net profit of approximately 90 million dollars for the 12 months ended 31 March 2017.
The company added that the expected net loss is primarily a result of one-off impairment charges from the write-off of a receivable arising from a loan made by the company and impairment charges taken on various intangible assets; as well as the expiration of a major license during the year. The impairment charges and receivable write-off were in excess of 100 million dollars and were non-cash adjustments. Based on the above adjustments, the company’s EBITDA, however, is still expected to be broadly consistent with the last year.
The company further added that the board is conducting a strategic review on the company and has instructed management to work on some specific strategies and initiatives to improve shareholder value.
Picture:Facebook/Buffalo David Bitton