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Superdry highlights need for refinancing on return to profit

FILE PHOTO: A woman walks past a window display at a Superdry store in London, Britain

LONDON (Reuters) - British fashion group Superdry returned to profit in the year to April 30 but said it was cautious on the near term trading outlook and stressed a need to refinance its borrowings.

The company, best known for its sweatshirts, hoodies, jackets and coats, said its current asset backed lending facility of up to 70 million pounds ($78 million) is due to expire at the end of January 2023.

Superdry said it had held positive discussions with prospective lenders but had not yet secured committed funding beyond January.

"The directors acknowledge that, until these discussions conclude, a material uncertainty exists around the going concern of the group, although we remain confident of a positive outcome," it said.

Superdry shares were up 9.4% at 0731 GMT, paring 2022 losses to 59%.

The group made an adjusted profit before tax of 21.9 million pounds versus a loss of 12.6 million in the previous year.

Revenue rose 9.6% to 609.6 million pounds as pandemic restrictions in its markets were lifted.

The group said it had made an encouraging start to its 2022-23 financial year, with revenue up 7% over the 22 weeks to Oct. 1.

However, it forecast profit would fall to between 10 million pounds and 20 million pounds, as cost inflation puts pressure on margins.

"We remain cautious about the near future as we continue to face a challenging macroeconomic environment, high levels of inflation, and the potential impact of these on consumer spending patterns," it said.

($1 = 0.8986 pounds)

(Reporting by James Davey; editing by Jason Neely and Jane Merriman)