10th Sep 2018 10:36
LONDON (Alliance News) - UP Global Sourcing Holdings PLC said Monday it expects its annual revenue to drop by 20% reflecting a "much tougher" trading environment and a one-off revenue deferral impact.
For the year ended July 31, the brand sourcing firm expects revenue of GBP87.6 million, down from GBP110.0 million a year ago. Revenue was impacted not only by a difficult retail environment, but also by one-off deferral due to a change in supply arrangements for a major European customer, the company explained.
Adjusted earnings before interest, taxes, depreciation and amortisation is expected 44% lower year-on-year at GBP6.5 million compared to GBP11.5 million, driven by lower revenue.
Looking at the current financial year, the company said that trading is in line with market expectations, while its order book is "ahead of this time last year" despite the continued tough retail backdrop in the UK.
The company will publish its full-year results on November 6.
Shares were trading 5% higher at 33.34 pence each.
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