JOHANNESBURG - Franchise group Famous Brands said on Monday its board had decided to recognise an impairment of R874 million in light of the continued adverse trading conditions and sustained underperformance of its GBK Restaurants business.
On August 16, Famous Brands published a voluntary performance update advising that its results for the six months ended August 31 were expected to be stronger than those reported in the prior comparable period, but that GBK would report a larger operating loss.
On Monday it said there had been no change to the information provided and that the impairment value was prudent in the current situation.
It said basic headline earnings for the six months ended August 31 were expected to be within the range of 175 - 194 cents compared with 170 cents last year, an approximate increase of three to 14 percent.
Famous Brands is due to release its results on October 29.
- African News Agency (ANA)