Share
PPL
28/06/2013 14:04
FORECAST
REL: 1404 HRS Pumpkin Patch Limited
FORECAST: PPL: PPL - Market Update
Pumpkin Patch Limited - Market Update
Pumpkin Patch has provided an update on current trading conditions and
guidance on expected FY13 earnings.
Despite the unseasonal winter weather and the very subdued retail conditions
in Australia and New Zealand, trading results across the winter season had
been tracking to expectations for most of the season. However, over the last
five weeks there has been a significant increase in the level of promotional
activity in the Australian market with major retailers entering end of season
sales much earlier and far more aggressively than normal. This will impact
retail earnings for the remainder of the FY13 year.
In addition, as a result of wholesale partners altering delivery schedules to
match their local promotion plans, a number of deliveries that have
historically been made in July have been rescheduled to August and September.
These changes are only timing in nature however FY13 after tax earnings for
the International business unit will be impacted by $0.6m.
As a consequence of the above the FY13 full year earnings after tax but
before reorganisation costs is now expected to be between $7.5m and $9.0m.
Despite the above the Company has been closely managing inventory across the
winter season and will enter the new financial year well positioned for the
launch of the new summer season's product.
Based on current trading conditions the Company anticipates bank debt at the
end of July will be around $50m.
The Company has made good progress with the changes being made to the design
and supply chain areas of the business. These initiatives will generate
significant earnings benefits, improve working capital, and lower bank debt
going forward. The first product developed under the new design process will
be launched in Australia and New Zealand in August.
ENDS
Pumpkin Patch Limited
28th June 2013
----------------------------------------------------------------
For further information please contact:
Neil Cowie (Chief Executive Officer) or Matthew Washington (Chief Financial
Officer)
Pumpkin Patch Limited
Phone +64 9 274 7088
End CA:00237965 For:PPL Type:FORECAST Time:2013-06-28 14:04:10
