Moss Bros Group plc announced consolidated earnings results for the six months ended July 28, 2018. For the six months, the company reported total revenue of £64,450,000 against £66,618,000 for the same period a year ago. Operating profit was £137,000 against £3,848,000 for the same period a year ago. Adjusted profit before tax was £235,000 against £3,860,000 for the same period a year ago. EBITDA was £3,664,000 against £6,998,000 for the same period a year ago. Loss on ordinary activities before taxation was £1,743,000 against profit on ordinary activities before taxation of £3,860,000 for the same period a year ago. Loss from continuing operations after taxation was £2,097,000 against profit from continuing operations after taxation of £2,899,000 for the same period a year ago. Loss after taxation attributable to equity was £2,097,000 against profit after taxation attributable to equity of £2,899,000 for the same period a year ago. Basic and diluted loss per share was 2.07 pence against basic and diluted earnings per share of 2.88 pence for the same period a year ago. Adjusted operating profit was £137,000. Adjusted profit on ordinary activities before taxation was £235,000. Adjusted profit after taxation attributable to equity holders of the parent was £302,000. Adjusted earnings per share were 0.30 pence. Net cash from operating activities was £4,028,000 against £10,531,000 for the same period a year ago. Purchase of intangible assets was £660,000 against £794,000 for the same period a year ago. Purchase of property, plant and equipment was £3,737,000 against £3,614,000 for the same period a year ago.

The company provided earnings guidance for the full year 2018. The company expects the effective current tax rate on the reported profit before tax for the 26 week period to 28 July 2018 is -33.5% (29 July 2017: 22.6%; 27 January 2018: 20.6%), representing the expected average annual effective current tax rate for the full year, applied to the pre-tax income of the 26 week period. Although current trading is showing a steady and improving trend and the Board recognises it is possible to mitigate the footfall related gross profit shortfall of the summer via short-term cost cutting, the company feel it would be detrimental to the long-term health of the business. This decision to continue to invest means that the Group is still on track to deliver an operating profit before adjusting items, but materially lower than current market expectation of £2.3 million.