Famous Brands suffers on JSE after saying it expects major losses from UK deal
Famous Brands’s share price fell 5.4% to R100.71 on Thursday morning after it warned shareholders it expected to report a crash in basic earnings per share of up to 96%. The fast-food franchiser provided more detail on the losses it expected to book from its UK acquisition Gourmet Burger Kitchen (GBK) following a warning it issued on March 8. GBK contributed an operating loss of £7.8m. Famous Brands said its results scheduled for release on May 24 would include a R304m impairment of intangible assets. The group would also write down a R69m impairment of GBK’s property, plant and equipment and an additional R33m provision for GBK’s property related expenses. Famous Brands said its South African businesses would report an improvement in profit before interest and tax. It said its headline earnings per share (HEPS) for the year to end-February would show a more moderate drop of up to 24%.
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