Unbound Group PLC tanks 41% after the over 55s fashion retailer sounds the earnings alarm

Shares of Unbound Group PLC (AIM:UBG) plummeted 41% after the owner of the Hotter fashion website for over-55s issued an earnings warning.

It blamed the lingering summer heat wave, the Royal Mail strike and the “broader economic situation” for the predicament.

As a result, full-year earnings are now expected to be £53-54m, with a pre-tax loss of £4.25-4.75m. Consensus estimates ahead of his 12-month statement, which ended 5 February, put him at £57.7m in sales and £1.2m in losses.

The latest information said the group will focus on efficiency and growth, adding that 2.smln’s cost savings were evident.

Unbound’s bank net debt stood at £8.8m at the end of last year, with ‘funding capacity’ around £1.3m, rising in the first quarter as ‘an increase in inventory investment into working capital reversed’ should do.

At 8:50am, the stock was down 41.19% at 3.97 pence. Last year they were down 93% and valued the business at just £4.4m.

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