We said we couldn't see a near-term catalyst for N Brown (BWNG) shares when we advised offloading the stock in September. The situation hasn't been helped by news that the company will incur an exceptional charge of £5m-£8m following an error in relation to previous calculations of its financial services customer complaint redress process. It has notified the Financial Conduct Authority (FCA) and will undertake a thorough review.
Investors should be on the lookout for a more thorough explanation from N Brown management as part of the half-year results announcement next week. Until then, we see no reason to turn bullish. Sell at 196p.
Last IC view: Sell, 190p, 22 Sep 2016