Retailer Aims for Turnaround with Restructuring Plan
- New Look reports £522m loss before tax
- Restructuring plan reduces debt from £1.35bn to £350m
- £150m in new long-term capital secured
- Core underlying operating profit at £33.2m (up from £35.7m loss)
- Revenue drops 3.8% to £1.23bn
- Core like-for-like sales fall 1.6% (improvement from 11.6% drop last year)
- Adjusted EBITDA increases to £80.2m (from £18m)
- Executive chairman Alistair McGeorge: ‘We have more work to do’
- Challenging past year for colleagues, investors, suppliers, and creditors
Fashion retailer New Look has reported a statutory loss before tax of £522.2 million in its full year results for the 53 weeks to 30 March 2019, compared to the previous year’s loss of £190.2 million. The company attributes this mainly to a £423.3 million goodwill and brand impairment charge (non-cash) related to its restructuring plan. New Look implemented this plan to reduce its £1.35 billion debt to £350 million, secured £150 million in new long-term capital, and achieved a core underlying operating profit of £33.2 million, an improvement from the previous year’s loss of £35.7 million. The company’s revenue dropped 3.8% to £1.23 billion, in line with expectations as it focuses on driving more profitable sales and fewer stores. Its core like-for-like (LFL) sales fell 1.6%, an improvement from the previous year’s 11.6% drop. New Look’s adjusted EBITDA increased to £80.2 million, compared with the previous year’s £18 million. Executive Chairman Alistair McGeorge said, ‘We have achieved a remarkable amount over the past year, delivering on our aim to achieve financial and operational stability.’ He added, ‘Whilst New Look enters the new financial year in a fundamentally healthier and stronger position, we have more work to do to enhance trading and deliver further operational improvements as we continue our turnaround plans.’
Factuality Level: 8
Factuality Justification: The article provides accurate information about New Look’s financial performance, including specific figures and details of its restructuring efforts, and includes quotes from the executive chairman that support the claims made.
Noise Level: 3
Noise Justification: The article provides relevant information about New Look’s financial performance and restructuring efforts, with quotes from the executive chairman that offer insight into the company’s progress and future plans. It does not contain any irrelevant or misleading information, and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: New Look’s restructuring plan impacted its debt, core underlying operating profit, revenue, like-for-like sales, and adjusted EBITDA
Financial Rating Justification: The article discusses New Look’s financial performance and the impact of its restructuring plan on various financial metrics such as debt reduction, profitability, revenue, and cost savings.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the company reported a significant financial loss and restructuring efforts.
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