22nd Jan 2020 08:32
(Alliance News) - Troubled retail outfit Ted Baker PLC on Wednesday reported that an auditor's review found it had overstated the value of its year-end inventory by more than GBP50 million.
The probe, fronted by Deloitte, found that the value of its stock at January 26, 2019, was overstated by GBP58 million.
Ted Baker added this is "materially higher" than its December estimate of an overstatement between GBP20 million and GBP25 million.
The firm added: "As previously stated, the overstatement is a non-cash item and related to prior years."
In December, the once high-flying high street store chain downgraded its annual pretax profit guidance to a minimum GBP5 million and a maximum of GBP10 million. For the year ended January 26, 2019, the company had posted pretax profit of GBP50.9 million.
Ted Baker at that time added: "We have continued to experience challenging trading conditions in the UK as a result of weak consumer spending, macro-economic uncertainty and a backdrop of elevated promotional activity."
Shares in the company were 3.8% lower at 307.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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