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HomeNEWSPumpkin Patch improves performance, but appeals to bank

Pumpkin Patch improves performance, but appeals to bank

This range aligns with the forecast given in June when the retailer announced director Josette Prince was stepping down

Pumpkin Patch previously reported a normalised ebitda of $11.7 million in 2015 and $17 million in 2014.

However, online sales in 2016 grew 44.1 percent in Australasia when compared to FY15, while same-store sales grew 5.4 percent in New Zealand.

This contrasts hugely with the challenges experienced in the first half, the retailer said.

Bank debt currently sits at $46 million, while inventory sits at $49 million.

The retailer says it has significantly improved its inventory age profile, so its new season inventory is now at more appropriate levels.

It said strength of the NZD to the Australian dollar has made it difficult to analyse progress it had made to its bottom-line earnings in retail and online.

“As a result, it remains challenging to improve the company’s capital constrained position and address its over-leveraged debt situation,” it said.

Pumpkin Patch also mentioned it was in ongoing talks with its bank and “some additional flexibility is being sought”.

It is also looking at whether further restructuring is required for its underperforming assets to pay back its debt as part of its four-year plan.

Previously, Pumpkin Patch’s sales for the six-month period ending 31 January 2016 were $102.8 million. In 2015, sales were $121.9 million.

New Zealand same store sales were down 4.8 percent, which the retailer attributed to underinvestment in its Kiwi bricks-and-mortar stores.

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