Its parent company’s share price dipped on the Johannesburg Stock Exchange.
As Business Day reported, Famous Brands revealed that its UK acquisition Gourmet Burger Kitchen (GBK) contributed an operating loss of £7.8 million, following a profit warning it issued last March 8.
Factors cited by the South Africa-based franchisor include an impairment of property, plant and equipment of £4.2 million (ZAR 69 million) and a provision for property related expenses of £2 million (ZAR 33 million) at GBK.
After warning shareholders that they expected to report a crash in basic earnings per share of up to 96%, the Famous Brands’ share price fell 5.4% to ZAR 100.71 ($7.95) last week.
Its annual results, scheduled for release on May 24, are expected to include a ZAR 304 million ($17.8 million) impairment of intangible assets.
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