Creightons PLC (LSE:CRL) shares slumped as it warned it was taking an impairment charge of £4.45 million for Emma Hardie, a business it acquired in 2021 for £6.2 million.
This non-cash item will have a material impact on results for the year to end March 2024, said the beauty products group.
The statement added that the second half of the year had seen “underlying profit and cash generation” compared to the first six months.
As a result, the shares recovered from a 40% drop at the open to around 14% or down 3p to 18p
Annual results will be published on 18 July 2024.