8th Jul 2024 10:38
(Alliance News) - 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 GBP6.2 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 GBP4.5 million.
This impairment will also result in a de-recognition of the goodwill value of GBP1.3 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 GBP170,000.
The net impact on accounts will be a GBP4.6 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.
By Elijah Dale, Alliance News reporter
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