8 Jun 2015

Pumpkin Patch to focus on growth

10:54 am on 8 June 2015

Pumpkin Patch says it will continue to focus on improving its financial performance after failing to receive any satisfactory offers to buy the company or proposals for a recapitalisation.

The children clothing retailer announced in March that it was seeking formal proposals in respect of either an acquisition of the company or a recapitalisation, which helped drive its share price up about 47 percent.

Board chair Peter Schuyt said the company believes it can deliver greater value to shareholders over the medium term than any of the alternatives currently available.

He said the company was on track to deliver an underlying full year operating profite of about $14 million, in the year ending in July, and also expected to meet its targetted reductions in debt and inventory.

However, Mr Schuyt said market conditions were expected to remain challenging, and earnings may be volatile going forward.

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