N Brown Group has returned to profitability with a £5.3 million profit before tax, despite a drop in sales.
- Revenue for the group decreased by 9.8% to £601 million, amid challenging market conditions.
- Adjusted EBITDA experienced a decline, falling 12.5% year-on-year to £47.6 million.
- Strategic product initiatives were implemented, including new offerings from JD Williams and Simply Be partnerships.
- CEO Steve Johnson highlights a strong balance sheet and enhanced customer experience due to strategic investments.
In a significant turnaround, N Brown Group reported a profit before tax of £5.3 million for the year ending 2 March, contrasting with a substantial loss of £71.1 million in the previous year. This positive shift in profitability was primarily attributed to reduced adjusting items and a deliberate focus on sales that drive profitability.
The company’s revenue fell by 9.8%, amounting to £601 million over the 52-week period. This drop reflects challenging market conditions and the group’s enhanced focus on profitable sales. Product revenue particularly witnessed a 10.6% decrease, indicating the impact of these strategic choices on overall sales figures.
Adjusted EBITDA saw a decline of 12.5% year-on-year, settling at £47.6 million. However, the company’s adjusted profit before tax rose by 171.4% to £13.3 million, an improvement that came in the wake of impairment of non-financial assets in the previous fiscal year. The full-year adjusted gross profit margin improved by 1.5 percentage points, reaching 47.7%.
Strategically, N Brown drove key product developments: JD Williams launched its Anthology premium line, while Jacamo broadened its smart casual and footwear ranges. Additionally, Simply Be fortified its third-party collaborations by introducing sportswear brand Tala to its offerings and initiating select line sales in Sainsbury’s stores.
CEO Steve Johnson emphasised the fulfilment of the group’s strategic and financial goals despite macro-economic pressures. He noted significant customer experience improvements due to the company’s transformation initiatives, which included the rollout of new websites. Johnson also spoke to the company’s robust liquidity, facilitating ongoing strategic investments aimed at sustainable growth while continually enhancing customer experiences.
Despite facing significant revenue challenges, N Brown Group has aligned its strategies effectively to achieve profitability and position itself for future growth.
