Accounting change to boost N Brown
N BROWN, the Manchester-based online, catalogue and high street plus-size fashion retailer says profits this year and next will be boosted by a new accounting practices.
The company, best known for its Simply Be, JD Williams and JD Williams brands, stressed the restatement of debtor impairment provision “in no way affects the way in which we have operated or will operate our business.”
It said following a review by new auditor KPMG it will make an adjustment to its net asset levels at the end of March 2014 of £45m to £55m. These adjustments will reflect a rise in its debtor impairment provision level from 8.0% to between 17.5% and 19.0% at the end of March 2014.
This will also result in its debtor impairment provisions level at February 28, 2015 moving to between 15.5% and 16.5% from 6.5% and, for the year to February 27, 2016, to between 14.5% and 15.5%.
The net result of the adjustments will be to increase profit for N Brown for the year to February 27, 2016 by around £4m to £7m and by £3m to £4m for the year to February 27, 2015.
The company said: “These restatements do not create any negative impact on historic cash flows or cash balances, nor do we expect any effect on banking arrangements, previous dividends or bonus payments. They do not reflect any changes to the group’s underlying trading performance or on the risk profile of the group’s debtor balances.”
