StockMarketWire.com - N Brown Group slashed its dividend after reporting a first-half loss and subdued revenues amid disappointing performance in its wider product segment owing to an ongoing decline of its legacy offline business and 'challenging' market conditions.

The interim dividend was slashed by 50.0% to 2.83p, which was blamed on slower-than-expected growth in the product and international segments.

'Whereas much progress has been made transforming the business into an online retailer, we have not yet achieved the growth in product or international that we would have hoped for and have decided to rebase the dividend to a more sustainable level from which we will seek to grow,' said Matt Davies, Chairman.

For the six months ended 1 September 2018, reported losses before tax rose were £27.1m and revenues rose 1% to £457.8m.

Product revenue, which makes the bulk of total revenue, fell 3.1% to £304.5m and financial services revenue increased 12.7% to £146.4m.

'The Group's adjusted profit was in line with our expectations as we benefited from growth in our online Power Brands and Financial Services, along with improved marketing efficiency. We were however disappointed with our wider product performance which was impacted by the ongoing decline of our legacy offline business and challenging market conditions,' said Steve Johnson, Chief Executive.

'Going forward we expect offline sales to continue to fall as we focus on online Power Brand growth. While this will hold back revenue in the short term, there are opportunities to drive profit particularly through improved efficiency, as the business further shifts online, and we accelerate the use of analytics to increase returns on our promotional spend.'

'While first half trends seen in our product business are continuing into the second half, the positive outlook for Financial Services and scope for further efficiencies mean that our full year expectations are unchanged.'


At 10:39am: [LON:BWNG] Brown N Group PLC share price was -30.4p at 108.1p



Story provided by StockMarketWire.com