BWX encounters new problems by delaying the release of financial results

BWX, the retailer behind beauty brands like Zoe Foster Blake’s Go-To business, has been forced to delay releasing its financial results until the end of September and may also need to restate its earnings from the previous fiscal year.

The group, which shocked the market in June by cutting its profit forecasts, said on Monday it may miss lowered forecasts for fiscal 2022 that marked a loss of up to $14 million.

BWX paused Monday morning and later reported that it is not in a position to release its audited annual results for fiscal 2022, which were due to be released on Tuesday.

Go-To founder Zoe Foster Blake has the option to sell the rest of the business to BWX.

Go-To founder Zoe Foster Blake has the option to sell the rest of the business to BWX.Credit:James Brickwood

“BWX requires additional time to prepare the company’s Schedule 4E due to certain revenue recognition issues for FY21 and 1H FY22 and the likely impairment of its intangible assets to a level significantly below their book value as previously anticipated at market on June 28, 2022”. he told the ASX.

“These matters mean that the company is currently unsure as to whether or not it will meet its full-year guidance for FY22, and the company may need to restate its results for FY21 and FY1H financial years. Prosecutor 22”.

BWX shares last traded at 63 cents, valuing the entire company at $126 million, compared with a year high of $5.56.

Entrepreneur and author Foster Blake made headlines last year when BWX acquired 51.1 percent of his Go-To company for $89.9 million in cash.

The deal included an option to sell the remainder of the business to BWX beginning in September 2024. The value of the option is recorded in BWX’s accounts at $93 million, but the sale price is dependent on a valuation of the Go-To business. at that moment. weather.

Go-To is one of the companies that could see its valuation reduced when the BWX accounts are released next month.

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