10th Oct 2024 12:34
(Alliance News) - N Brown Group PLC on Thursday said it has swung to a profit in the first half of 2025, as declining sales were offset by cost-cutting measures and a rise in the average selling price of its products.
The Manchester, England-based clothing and footwear online retailer swung to a profit of GBP200,000 in the six months ended August 31, from a loss of GBP2.8 million the previous year. Adjusted earnings before interest, tax, depreciation and amortisation also rose 7.4% to GBP18.8 million from GBP17.5 million.
The swing to profit was partly due to the cost of sales dropping 9.4% to GBP91.1 million from GBP100.5 million, whilst impairment losses on customer receivables were down 12% at GBP49.6 million from GBP56.1 million.
However, total revenue fell 6.7% to GBP277.2 million from GBP297.0 million last year.
Chief Executive Officer & Interim Chair Steve Johnson said: "We have built on our return to profit in financial 2024 by delivering year-on-year progression in the first half of financial 2025. Our focus on maximising profitable sales and managing the cost base in a soft trading environment has ensured we remain on track to achieve management's full-year adjusted Ebitda expectations, and we are encouraged by trading at the start of the third quarter.
"We have continued to deliver against our self-funded transformational priorities, including the successful launch of the new JD Williams website and our product information management system to the remaining strategic brands, whilst our financial services transformation continues to progress well with the new platform now in testing. These developments will enhance the customer experience and will be supported by strengthened marketing activity to help position the business for sustainable profitable growth."
Broker Shore Capital forecasts revenue of GBP578 million, adjusted pretax profit of GBP12 million and Ebitda of GBP48.3 million for N Brown's financial 2025 results. This would represent a 3.8% fall in revenue from GBP600.9 million last year, a 9.8% decline in adjusted pretax profit from GBP13.3 million and a 1.5% rise in Ebitda from GBP47.6 million.
Shares in N Brown were up 2.1% at 28.58 pence each in London on Thursday afternoon.
By Emily Parsons, Alliance News reporter
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