Monday August 31, 01:36 PM
CORRECTED-UPDATE 2-Mariella Burani shares suspended after H1 loss
By Marie-Louise Gumuchian
MILAN, Aug 31 (Reuters) - Shares in Mariella Burani Fashion Group, which announced a first-half loss at the weekend, were suspended on Monday, the Milan bourse said, adding it would issue a statement later.
Mariella Burani (Milan: MBFG.MI - news) , which makes womenswear, was not available to comment.
On Sunday, the company said it swung to a net first-half loss of 142 million euros ($204 million) as revenues fell and it undertook a restructuring, adding it would convene a board meeting soon.
The financial report also included significant asset writedowns. Net debt widened to nearly 480 million euros.
In a note attached to the results, auditor Mazars quoted unnamed Mariella Burani board members as saying there were 'significant elements of uncertainty' about the group's ability to continue operating.
Mazars said it was not expressing professional judgement on the results, nor on those of leather goods unit Antichi Pellettieri (Milan: AP.MI - news) , which also posted a net loss. Its shares were suspended limit down on Monday, and were indicated off 24 percent.
'The board ... has considered corrective actions to resolve the situation of financial tension and significant uncertainties relative to (the group's) ability to continue operating,' Mariella Burani said in a re-published results statement on Monday.
LUXURY SECTOR HIT HARD
Italy's luxury sector has been hit hard by the economic crisis as the downturn saps demand for clothes and accessories.
IT Holding (Milan: ITH.MI - news) , owner of Milan fashion house Gianfranco Ferre, sought special administration in February. It is in the hands of government-appointed commissioners.
Mariella Burani is reorganising itself after posting a net loss last year, selling stakes in jewellery makers to focus on apparel and leather goods. In May, it requested a standstill debt agreement with banks as part of a restructuring programme.
The group has said it was calling a shareholder meeting to approve a mandate for a capital increase of up to 100 million euros, to be partially subscribed by its major shareholder. The Burani family controls more than 70 percent of the group.
'The key point now is for auditors to certify the results because I challenge anybody to put money into the capital increase without knowing the situation,' an analyst said.
Exane BNP Paribas analysts said in a note the results were worse than expected. They cut their target price to 1.4 euros from 1.6 and rated the stock 'underperform', adding: 'We see no positives on the horizon for MBFG'.
(Additional reporting by Simone Bagnacani; Editing by John Stonestreet and Dan Lalor)
($1 = 0.6964 euro) Keywords: MARIELLABURANI SHARES/
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