Business
Update on Asset Impairment and Notice of Results
Update on Asset Impairment and Notice of Results.
About this update from Potter & Moore Plc
[{"type":"text","content":"\n\n08 July 2024 \nCREIGHTONS plc (\"Creightons\" or the \"Company\")\nUpdate on Asset Impairment and Notice of 2024 Audited Preliminary Results\nCreightons 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.\nImpairment of the Emma Hardie Intangible Asset valuation\nWhilst 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.\nThe 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.\nThis 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.\nThe net impact on the Accounts will be a non-cash post-tax charge of £4.62m.\nSimilar impairment exercises on the other acquired brands resulted in value-in-use exceeding their carrying value, so no impairments will be required.\nThe 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.\nFurther details on the assumptions used and the brand performance will be included in our forthcoming audited preliminary results announcement.\nNotice of 2024 Audited Preliminary Results\nCreightons plc intends to anno...