08 July
2024
CREIGHTONS plc ("Creightons" or the "Company")
Update on
Asset Impairment and Notice of 2024 Audited Preliminary
Results
Creightons plc (LSE:
CRL), the product developer, brand
owner and manufacturer of personal care, beauty, and fragrance
products, today announces an update on its annual impairment review of
goodwill and brand values, along with providing a date for the
announcement of the 2024 audited preliminary results.
Impairment of the Emma Hardie
Intangible Asset valuation
Whilst the audit of the Company's
consolidated accounts for the year ended 31 March 2024 ("Accounts")
is still underway, the Company considers it appropriate to announce
now the results of its annual impairment review of goodwill and
brand values in relation to the acquired businesses and the likely
effect on the Accounts.
The Emma Hardie business was
acquired on 28 July 2021 for a total consideration of £6.2m. The
annual review of the value-in-use of the Emma Hardie brand, in
accordance with the requirements of IAS36, will result in an
exceptional impairment charge of £4.45m. While non-cash in the
current year, this charge will materially adversely impact the
reported pre-tax profit. The remaining associated intangible asset
value of £0.66m reflects an accounting assessment of discounted
future cash flows from Emma Hardie, based upon current performance
and an estimate of future sales and costs.
This impairment will also result in
a derecognition of the goodwill value of £1.28m, relating to the
deferred tax associated with the Emma Hardie brand, with
consequential adjustments to the deferred tax accrual. The
net effect of these will be a tax charge of £0.17m.
The net impact on the Accounts will
be a non-cash post-tax charge of £4.62m.
Similar impairment exercises on the
other acquired brands resulted in value-in-use exceeding their
carrying value, so no impairments will be required.
The operational performance of the
Group in the year to 31 March 2024, will show improved underlying
profit and cash generation in the second half of the year in
comparison to the first half.
Further details on the assumptions
used and the brand performance will be included in our forthcoming
audited preliminary results announcement.
Notice of 2024 Audited Preliminary
Results
Creightons plc intends to announce
its audited preliminary results for the year ended 31 March 2024 on
Thursday 18 July 2024.
There will be a presentation at 11am
24th July for investors and analysts. For details,
please email creightons@piworld.co.uk.
Creightons plc.
Enquiries analysts/investors
email info@creightons.com
Roland Cornish, Beaumont Cornish
Limited 0207
628 3396
Beaumont Cornish Limited, which is
authorised and regulated in the United Kingdom by the Financial
Conduct Authority, is Financial Adviser to the Company in relation
to the matters referred herein. Beaumont Cornish Limited is acting
exclusively for the Company and for no one else in relation to the
matters described in this announcement and is not advising any
other person and accordingly will not be responsible to anyone
other than the Company for providing the protections afforded to
clients of Beaumont Cornish Limited, or for providing advice in
relation to the contents of this announcement or any matter
referred to in it.
This announcement contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.