And the future of struggling Sydney based fashionwear retailer, retailer Noni B (NBL) might become clearer shortly.
The company made a $7.8 million loss as forecast, in the year to June 30, according to its 2013-14 report, released late on Friday.
In it directors said a review of the company’s future by its major shareholders was close to a conclusion, although the sale of the business or any other proposal is guaranteed to proceed.
The company has been approached by several parties interested in taking a stake or complete control of the company, after it announced its major shareholders, the Kindl family, were undertaking a strategic review of the company.
It said on Friday that review has substantially progressed and the outcome is likely to be announced shortly.
NBL 1Y – Uncertain outlook for struggling Noni B
Noni B issued several earnings downgrades in the six months to June, warning sales and earnings had been hit by a combination of poor management decisions, reluctant consumers and the warm autumn and early winer, and then the negative impact of the federal budget.
Sales at the women’s fashion chain dropped 7.7% in the year to June 30, to $112 million, contributing to an underlying loss of $2.2 million.
Noni B also reduced the remaining value of its intangible assets to zero in the year, adding a further $5.6 loss to the overall loss.
The company’s sales picked up slightly in the final three months of the year, as it conducted promotions to try to stimulate demand.
“Sales were also impacted by the unseasonably warm weather and by reduced spending by Noni B’s core customers following the federal budget,” directors said.
Noni B shares are currently worth 45 cents, down from 66 cents in January.
They are only at 45 cents because of the possible corporate activity. If nothing happens the value of the shares will collapse.
