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LK Bennett loses, but is bright for the future

LK Bennett Submitted the latest results to Companies House, covering only 12 months until February last year, but included information on how it has progressed in the Covid hit environment since then.

LK Bennett

The company experienced some major turmoil in 2019/20 with an administrative application, a sale to Rebecca Feng’s Byland (a Chinese franchise partner), a CVA, and several store closures.

According to the company’s financial report, all stores were temporarily closed due to the closure that began in March last year, but the company was able to continue trading because it provided a loan through Byland Investments in the same month.

He said he improved his e-commerce platform this year and worked with new partners, but lost only a certain amount of sales through online channels and this year’s sales fell unspecified. The company also offers more relaxed clothing within the SS21 range in response to changing consumer behavior and continues to tailor its collection “as needed”.

The company seemed to have overcome the first blockade, but last year’s CVA was triggered by the announcement of a second UK blockade in the fall. The CVA was approved by creditors, and in January this year the company secured an asset-based lending facility. This will allow them to “invest in the future and return to pre-Covid-19 levels over a conservative Tyne period.”

So how exactly was it delivered during the pre-Covid period? In the 12 months to February 2020, be clear about what normal trade will look like, even if China’s operations are hit, without the pandemic elements affecting UK operations. Given that, the timing of result reports is important. Given that it was the first country to introduce blockades at the time.

Unfortunately, it did not reveal details of domestic and international trade. But the obvious loss it brings is that even before the pandemic, the company faced major challenges. We haven’t compared it to the acquisition made in April 2019, but sales were £ 41.4m during this period.

Gross profit for the year was £ 23.8m and the gross margin was 57.9%. However, after the exceptional item, EBITDA resulted in a total loss of £ 600,000. The group reported an operating loss of £ 3m, with the exception of the primary positive exception of £ 1.4m. These exceptions were the increase in stock margin due to the establishment of new companies and the purchase of assets. However, the company’s net loss was £ 2.3 million.

As a result, the company acknowledged that the brand has faced multiple challenges in recent years, given administrative filing and CVA. However, the business is “moving quickly to be considered highly valued for its high standards and excellent quality,” he said. Part of this move is the updated logo, which “indicates that the brand has evolved to a new level of sophistication and sophistication.” This was originally scheduled to start in 2020, but has been returned this year considering what was happening due to the pandemic.

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LK Bennett loses, but is bright for the future

Source link LK Bennett loses, but is bright for the future

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