Ted Baker on financial charm offensive as rumours swirl around future plans
today Sep 30, 2019
Three Ted Baker bosses are to embark on a weeklong charm offensive after the release of the fashion chain’s half-year results on Thursday.
Chief executive officer Lindsay Page, outgoing chief financial officer Charles Anderson and commercial director Phil Cark have set up meetings with fund managers in London and Edinburgh, according to The Daily Telegraph.
Investors in the business are on alert for a cash call following two profit warnings this year. Ted Baker is expecting ongoing consumer uncertainty and elevated levels of promotional activity to have a toll on pre-tax profit for the year ending 25 January 2020.
Analysts expect the struggling fashion retailer to announce a dividend cut this Thursday
A Top 20 shareholder told the English newspaper that the fashion brand could be looking to tap the City for cash. The alert sent Ted Baker shares to a six-year low. They have fallen by almost 40% in the year to date and nearly 60% since 1 October 2018.
The embattled fashion business has had a tough year after founder Ray Kelvin resigned in March following a wave of sexual harassment allegations. He still owns a 35% stake in the company, and rumours have circulated that he is prepared to support a buyout to take the business private.
On Thursday, Ted Baker announced that Rachel Osborne, former Debenhams chief financial officer, is set to become its new finance boss.
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