Laura Ashley's profit hit with £2.8m property revaluation

 
Helen Cahill
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The retailer issued a profit warning last week (Source: Laura Ashley)

Laura Ashley issued a "disappointing" set of full-year figures this morning following its profit warning last week.

The figures

Profit before tax and exceptional items plummeted 66 per cent from £24.7m to £8.4m, however, the figures compared a 74-week period in 2016 to a 52-week period to 30 June 2017.

Like-for-like sales fell 3.1 per cent, and total group sales came to £277m, down from £400.9m.

Read more: Laura Ashley shares plummet after warning on "material" profits miss

The board said the firm was not going to pay out a final dividend on top of the 0.5p interim dividend already paid.

Why it's interesting

Last week Laura Ashley's share price tumbled after it issued a profit warning, saying that its full-year figures would be hit with a one-off charge of £2.8m due to the revaluation of a freehold property. The announcement comes after the retailer revealed a drop in half-year profits from £11.0m to £7.6m.

Cantor Fitzgerald's retail analyst Mark Photiades said the results were "disappointing" but "should be a trough in earnings".

"We remain of the view that the brand has potential for further international expansion, coupled with further online development," he said.

What Laura Ashley said

Chairman Tan Sri Dr Khoo Kay Peng said: "Trading conditions have been challenging for the year ended 30 June 2017. The impact of weak sterling has also contributed to the overall fall in profit which the group has experienced.

"We are focused on addressing the challenges which our business has encountered over the past year and are confident that we are well-positioned to overcome them."

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