|
Creightons PLC shares fell on Monday, after it said it faces an impairment charge that will have a material adverse impact on its full-year profit. The Peterborough, England-based company is a product developer and brand owner operating in the personal care, beauty, and fragrance sectors. Shares in Creightons were down 12% to 18.52 pence each in London on Monday morning. In July 2021, Creightons purchased the skincare company Emma Hardie Ltd for a £6.2 million consideration. Today, ahead of the company’s annual results for the year ending March 31, Creightons said that following a review of the brand it will face an exceptional impairment charge of around £4.5 million. This impairment will also result in a de-recognition of the goodwill value of £1.3 million relating to the deferred tax, with consequential adjustments to the deferred tax accrual. The net effect of these will be a tax charge of approximately £170,000. The net impact on accounts will be a £4.6 million non-cash post-tax charge. Consequentially, despite reporting improved profit and cash generation in the second half of the year, full-year profit will be impacted by the aforementioned charge. Results for the year are due to be published on July 18. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
