31st Mar 2014 10:42
LONDON (Alliance News) - Online fashion retailer Boohoo.com PLC Monday said it increased revenue and earnings in the recent financial year, ending the year in line with expectations.
In a trading update, Boohoo.com, which sells own-branded men's and women's fashions to its core market of 16-24 year old consumers, said that the year to 28 February finished in line with market expectations, with net revenues in excess of GBP109 million, a 62% increase on the prior year.
It saidstatutory adjusted earnings before interest, taxes, depreciation and amortisation for the year is expected to be in line with market forecasts, being an increase of over 200% on the previous year's GBP3.9 million. That would equate to EBITDA of GBP11.7 million for the recent year.
The retailer said the strong growth is being driven by its rapidly expanding customer base both in the UK and overseas.
Boohoo.com, which competes with bigger rival ASOS PLC, is hoping to continue to grow the business both in the UK and internationally and to expand its distribution facilities with the help of the GBP300 million proceeds from its recent flotation on AIM, although it said approximately GBP240 million of that will be used to repay convertible loan notes held by its existing shareholders.
Earlier this month, shares in Boohoo.com started unconditional dealings at a large premium to its offer price, after it became the fifth UK retailer to float on the London Stock Exchange so far this year. The retailer offered of 600 million shares with institutional and other investors at 50 pence per share. It had a market capitalisation of GBP560 million at the IPO price, and that has since increased to GBP592.5 million.
Boohoo.com shares were trading 3.1% higher Monday morning at 52.60 pence per share.
The retailer said it will announce its full year results on June 12.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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