BWX encounters new problems by delaying the publication of financial results
BWX, the retailer behind beauty brands such as Zoe Foster Blake’s Go-To business, was forced to delay the release of its financial results until the end of September and may also have to restate its earnings from the ‘Previous exercice.
The group, which shocked the market in June by slashing its profit forecast, said on Monday it may not meet a lowered forecast for the 2022 financial year which announced a loss of up to $14 million.
BWX halted operations on Monday morning and later said it was unable to release its audited full-year 2022 results, which were due Tuesday.
“BWX requires additional time to prepare the Company’s Schedule 4E due to certain revenue recognition issues for FY21 and the first half of FY22 and the likely impairment of its intangible assets at significantly below their book value, as previously announced to the market on June 28, 2022,” he told the ASX.
“These questions mean that the company does not currently know whether or not it will meet its FY22 guidance, and the company may need to restate its FY21 and 1H22 results.”
BWX shares last traded at 63c, valuing the entire company at $126m, down from a yearly high of $5.56.
Entrepreneur and author Foster Blake made headlines last year when BWX acquired 51.1% of his Go-To business for $89.9 million in cash.
The deal included an option to sell the rest of the business to BWX as early as September 2024. The value of the option is recorded in BWX’s accounts at $93 million, but the sale price is dependent on a valuation of Go-To activity on that date. time.
Go-To is one of the companies that could see its valuation reduced when it releases BWX accounts next month.