Bonmarché forecasts deeper full year loss amid weak sales

Bonmarché Holdings plc has said in a statement that the company expected to achieve underlying PBT for the year within the lower end of the breakeven to loss of 4 million pounds. However, it added that trading since the beginning of March has been significantly weaker, reversing sales gains made in the previous months. Bonmarché now expects underlying PBT loss to be between 5 million pounds and 6 million pounds.

The company said that as noted in its announcement of December 13, 2018, sales during the third quarter of the financial year were below initial expectations. During the "sale" period covering January and February 2019, autumn/winter season stock levels reduced 40 percent compared to last year, however, it also meant heavy discounting to achieve the target. While sales since Christmas had been slightly above the level required to meet the revised forecast range, despite the additional discounting, Bonmarché added that trading trend since March continued to be weaker.

According to the company, the group's cash balance reaches its lowest point in the annual cycle at the end of March, when its bank facility is expected to be sufficient to meet liquidity requirements, even at the lowest end of the PBT range. Other than this short term borrowing requirement at the year-end, the group expects to continue to operate with a positive net cash balance during FY20.

Picture:Facebook/Bonmarché