// Bonmarche issued 3rd profit warning after tough trading in March
// It previously expected an underlying loss of up to £4m but now expecting up to £5m & £6m
// Shares have decreased by 14%
Bonmarche has issued its third profit warning in just six months, saying it would suffer a bigger loss than anticipated this year following tough trading in March.
The British fashion retailer said it previously expected an underlying loss of up to £4 million, but is now expecting up to £5 million and £6 million.
The news has prompted shares in Bonmarché to drop 14 per cent.
Christmas sales had been just above the mark required to hit its previous forecast range, although March saw much weaker sales growth.
“The group’s cash balance reaches its lowest point in the annual cycle at the end of March, when its bank facility is expected to be sufficient to meet liquidity requirements, even at the lowest end of the [profits] range,” Bonmarché said in a statement this morning, reassuring that it was not suffering from cash problems.
“Other than this short-term borrowing requirement at the year end, the group expects to continue to operate with a positive net cash balance during full-year ’20.”