Noni B advises of goodwill write-down

Fashion retailer Noni B is another to add to the list of victims suffering through the difficult retail times.

The company has advised as a result of a review by the board an impairment charge to goodwill in the current year. In statement to the ASX, Noni B estimated the write down will be approximately $5 million, which represents the current carrying value of goodwill.

The impairment will be one-off, non-cash item. But it is understood this decision could possibly put the company into a full-year loss for 2013. Noni B results for FY2013 will be announced on August 27, 2013.

Noni B confirmed it does not expect any substantial change to its previous guidance on the after tax trading profit – before any goodwill impairment – for FY2013 of between $1 million and $1.5 million. This is against the 2012 financial year results of $2.7 million.

In February, Noni B had reported a 19 per cent net profit loss and an EBITDA drop of 18.3 per cent.