Seraphine warns on profits
Seraphine has issued a full year profit warning after trading was hit by the impact of Russia’s invasion of Ukraine and the rising cost of living.
As previously announced, the maternity and nursing wear retailer has been hit by increased distribution and customer acquisition costs and has also identified additional one-off non-cash corrective items, including previously unreconciled customer refunds and stock adjustments.
Seraphine has been taking a number of steps to strengthen its business recently including a full review of its forecasting and financial management information capability, the appointment of a trading director and chief operating officer, and the implementation of a strategic re-pricing.
The retailer now expects to achieve full year sales of around £44.1 million and adjusted EBITDA of not less than £3 million.
David Williams, Seraphine chief executive, said: “Whilst we are disappointed that a combination of internal and external factors has affected the out-turn for the year and expect consumer sentiment to remain subdued in the short term, we are confident in the strong underlying fundamentals of the business and our ability to scale up and deliver growth in the medium term.
“We will also benefit from the steps we have taken to strengthen our executive and operational management capability across the team.”
