N Brown discovers accounting mistake, late to roll out online platform

N Brown revealed its US web platform will be launched later than planned, that it made a mistake in an earlier calculation of financial customer complaint redress and that its JD Williams subsidiary has gained regulatory approval to continue offering consumer credit.

The FTSE 250 clothing retailer, which has notified the Financial Conduct Authority about the error and said it was undertaking a "detailed review", calculated it will result in an exceptional cash cost of £5-8m.

The company also confirmed that its new USA web platform is scheduled to go live "within the next few days, slightly later than planned".

N Brown said it would use "learnings" from this launch will as it plans the roll out of its new UK web platform and financial services system, which will result in a change to its previously communicated timetable and possibly a resulting increase in costs.

The FCA has also given full approval with no conditions or caveats, after it took charge as regulator of the consumer credit industry from the Office of Fair Trading.

Management have confirmed that the announcement “marks the successful completion of the application process", with house broker Shore Capital describing the unconditional and caveat-free approval as "a very positive outcome"

Shore Cap added: "With some commentators suggesting that gaining FCA approval could lead to a material impact on the medium to long term prospects for financial services income and profitability, we see today’s announcement as a major positive for the N Brown investment case."

Shares in the company were down 1.3% to 187.5p as the statement emerged late on Wednesday afternoon.