Oroton losses fall after rescue, cuts rent bill as it faces stronger future
High-end Australian accessories specialist Oroton Group managed to slash its losses in its latest financial year as it cut back on marketing and other spend after its A$24 million rescue by fund manager Will Vicars, who had been one of its largest shareholders.
The now-privately-held company said this week that the 12 months to June 2018 saw pre-tax losses of A$6.7 million, down sharply from the year earlier’s A$17.6 million. And with one-off costs of A$9.9 million factored out, underlying pre-tax profit would have reach A$3.3 million, despite sales falling 5.7% to A$116 million.
The company, which recently got a boost when Meghan Markle carried one of its bags while visiting Australia, went into voluntary administration a year ago but could get back to full profitability in the current financial year, assuming no other one-off costs dent the balance sheet.
The accounts also showed the firm’s cash reserves at year-end were higher than they’ve been in five years, although some of the A$15.1 million it had was used to pay unsecured creditors under the deed of company arrangement, which had been approved by creditors in March, The Australian Financial Review reported.
The newspaper also said that the company has successfully renegotiated onerous leases with three of its 59 stores having closed and “material rent reductions” being secured at other stores.
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