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N Brown’s new accounting model to help boost its FY16 pre-tax profits

By Angela Gonzalez-Rodriguez

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Management

N Brown is confident its new model of accounting will help boost its profits in fiscal year 2016 and fiscal year 2017. The new accounting "in no way affects the way in which we have operated or will operate our business."

The Manchester-based online, catalogue and high street plus-size fashion retailer says profits this year and next will be boosted by a new accounting practices, reports ‘The Business Desk’

The company, owner of fashion brands Simply Be and JD Williams, explained that, following a review by new auditor KPMG, it will make an adjustment to its net asset levels at the end of March 2014 of 45 million to 55 million pounds.

The adjustments “don´t create any negative impact on historic cash flows or balances”

"These restatements do not create any negative impact on historic cash flows or cash balances, nor do we expect any effect on banking arrangements, previous dividends or bonus payments. They do not reflect any changes to the group's underlying trading performance or on the risk profile of the group's debtor balances,” summed up the company in a statement.

On a related note, N Brown stressed the restatement of debtor impairment provision will reflect a rise from 8.0 percent to between 17.5 percent and 19.0 percent at the end of March 2014.

These adjustments will also result in its debtor impairment provisions level at February 28, 2015 moving to between 15.5 percent and 16.5 percent from 6.5 percent and, for the year to February 27, 2016, to between 14.5 percent and 15.5 percent.

As explained by the company Monday, the net result of the adjustments will be to increase profit for N Brown for the year to February 27, 2016 by circa 4 million pounds to 7 million pounds and by 3 million pounds to 4 million pounds for the year to February 27, 2015.

The FTSE 250-listed company owns brands such as House of Bath, SimplyBe, Jacamo, and figleaves.com.

N Brown