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Moss Bros bins dividend as loss widens
24th Sep 2019 08:55
(Sharecast News) - Moss Bros scrapped its interim dividend on Tuesday as it reported a widening of its losses and a drop in gross margin.
In the six months to 27 July, pre-tax losses widened to £2.7m from £1.7m in the same period last year as cost of sales increased 4% to £27.8m and the business took a hit from a one-off interest expense of £1.5m.
The London-listed company said it would not pay an interim dividend to ensure maximum flexibility for investment, unlike last year, when it proposed a dividend of 1.5p per share.
Revenue edged 1% higher to £65.4m as like-for-like retail sales climbed 3%, with in-store sales up 1% despite continued declining footfall.
However, the men's tailoring retailer said its retail gross margin rate dropped by 0.7% to 55.8% due to increased lower margin e-commerce and third-party/platform sales versus own stores.
The company said it expects to deliver full-year results in line with market expectations and will continue to invest in key strategic areas such as the evolution of Moss Bros brand, improvements to its online presence and in-store profitability.
Chief executive Brian Brick said: "Given the challenging retail marketplace in which we operate, this will take time and investment to deliver, but with our combined efforts, I am confident that we can return the business to profitable growth across the longer term."
Moss Bros also announced the launch of a £169 environmentally-friendly eco suit, cut from recycled polyester-blend cloth made from up to 45 plastic bottles.
The suit, which comes in a biodegradable bag, also features 100% natural corozo nut buttons and thread is made from 100% recycled polyester yarns.
Moss Bros Group shares were up 5.70% at 20.32p at 0910 BST.
In the six months to 27 July, pre-tax losses widened to £2.7m from £1.7m in the same period last year as cost of sales increased 4% to £27.8m and the business took a hit from a one-off interest expense of £1.5m.
The London-listed company said it would not pay an interim dividend to ensure maximum flexibility for investment, unlike last year, when it proposed a dividend of 1.5p per share.
Revenue edged 1% higher to £65.4m as like-for-like retail sales climbed 3%, with in-store sales up 1% despite continued declining footfall.
However, the men's tailoring retailer said its retail gross margin rate dropped by 0.7% to 55.8% due to increased lower margin e-commerce and third-party/platform sales versus own stores.
The company said it expects to deliver full-year results in line with market expectations and will continue to invest in key strategic areas such as the evolution of Moss Bros brand, improvements to its online presence and in-store profitability.
Chief executive Brian Brick said: "Given the challenging retail marketplace in which we operate, this will take time and investment to deliver, but with our combined efforts, I am confident that we can return the business to profitable growth across the longer term."
Moss Bros also announced the launch of a £169 environmentally-friendly eco suit, cut from recycled polyester-blend cloth made from up to 45 plastic bottles.
The suit, which comes in a biodegradable bag, also features 100% natural corozo nut buttons and thread is made from 100% recycled polyester yarns.
Moss Bros Group shares were up 5.70% at 20.32p at 0910 BST.