Ann: Trading Update and Response to Media Speculation, page-17

These results had been telegraphed for a while and the market was clearly pricing in much worse. Most brokers indicated a cap raise (or worse, insolvency) was imminent about 9 months ago. Clearly that is not the plan and it looks like the business will continue trading without one. Worst case, minimal debt or indeed selling the US portion of the business.

H1 FY24 was about aggressively clearing out old and outdated inventory at losses in order to focus on a shift in the business. That shift being a pivot from low cost and rather generic items towards much higher margin items like casual and formal dresses. Management also seem to be improving with their cost cutting program and streamlining backend operations, like reducing headcount and warehouse consolidation.

So yes, whilst these results are poor in isolation, they reflected a poor period which were unfortunately necessary for the business to transition through. The play here IMO is for the outlook which seems to be improving through these changes, and a potential takeover for some if not all of the business.