Shares in Unbound Group PLC (AIM:UBG) tanked 41% after the owner of the Hotter fashion website for the over 55s sounded the earnings alarm.
It blamed the extended heatwave over the summer, Royal Mail strikes and ‘broader economic conditions’ for its woes.
As a result, full-year revenue is now expected to be £53-£54mln, giving a pre-tax loss in the region of £4.25-£4.75mln. The consensus estimate ahead of the trading statement for the 12 months ended February 5, 2023, was for sales of £57.7mln and a loss of £1.2mln.
In an update, the group said it would focus on efficiency and growth, adding that it had uncovered around £2.3mln of cost savings.
Unbound’s net banking debt was £8.8mln as of the end of last year with around £1.3mln of ‘funding headroom’, which should increase in the first quarter as “the incremental inventory investment in working capital reverses”.
At 8.50 am, Unbound shares were changing hands for 3.97p, a fall of 41.19%. In the last year, they have dropped 93%, valuing the business at just £4.4mln.