25 Sep 2015

Pumpkin Patch delays release of annual result

8:19 pm on 25 September 2015

Pumpkin Patch has delayed the release of its financial result by five more days, after discovering some unspecified risks that are likely to adversely affect its bottom line.

The children's clothing retailer had been expected to report its annual result today, with a normalised annual gross operating profit in the order of $14 million, for the year ended in July.

Pumpkin Patch said it was still finalising its annual result after discovering previously unanticipated costs would lower its normalised gross profit to between $11.6 million and $11.8 million.

It said bottom-line after-tax losses would also be greater than previously advised, because of the additional impairment and further adjustments for under-performing stores.

The debt-laden retailer said it was in advanced talks with its bank on the potential impact of the reduced earnings on its ability to meet loan conditions.

The update follows the resignation of Pumpkin Patch chief executive Di Humphries, who will step down in early November. She will be replaced by director Luke Bunt.

The company said earlier this year there was potential for a takeover offer, but it failed to materialise.

Pumpkin Patch's share price tumbled nearly a third to 10 cents after it delayed the release of its financial result.

It said it would now release the financial report on 30 September.

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