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EBTM issues profit warning, considering sale of company

6th Jan 2009, 10:30 am EBTM issues profit warning, considering sale of company

EBTM PLC warned that full-year profits will fall materially below market expectations and said it is considering strategic options, including a partial of full sale of the business.


The online retailer and wholesaler of music inspired fashion saw the online retail division failing to live up to the high expectations flagged before the Christmas period, with net sales falling 33 percent in December year-on-year rather than delivering accelerated growth.


As a result, despite the previously announced restructuring of the cost base, the board believes that the financial performance of the company for the financial year to April 2009 will be materially below current market expectations, it said.


The disappointing Christmas sales, together with the ongoing challenging conditions in the wholesale division, have consequently had an impact on the limited financial resources of the company.  It is therefore evaluating strategic options which may include a disposal of part, or all, of the group, EBTM said.


The company is herefore in an offer period as defined under the City Code on Takeovers and Mergers.  However, there can be no assurance that an offer will be received or that any disposals will be concluded in which case the company may need to seek alternative short term funding options.

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