N Brown revenue falls 13% to £729m

Shares of Manchester-based online fashion and home goods retailer N Brown Group fell about 7% on Thursday after it said its revenue fell 13% to £728.8 million in the 52 weeks to February 27, 2021, and statutory profit before tax fell 72.3% to £9.9 million.

Adjusted profit before tax fell 49.4% to £30.1 million.

N Brown’s brands include Simply Be, JD Williams, Ambrose Wilson, Jacamo and Home Essentials, and the group employs about 2,000 people across the UK.

N Brown said during the year it completed a £100 million equity raising “to accelerate strategic transformation and eliminate unsecured debt alongside new extended financing facilities” and completed its move to the Alternative Investment Market.

“Since the start of FY22 we have returned to product revenue growth and for the full year we currently expect product revenue growth of between 3% and 7%,” said N Brown.

“Financial services revenue is expected to be lower compared to FY21 as a result of a smaller debtor book at the start of FY22. 

“Overall we currently expect group revenue growth to be +1% to +4% for FY22 and for adjusted EBITDA to be in the range of £93m to £100m.”

N Brown CEO Steve Johnson said: “In a year where we have all had to overcome multiple challenges, we have continued our transformation of the group through a relentless focus on our five strategic brands, improving our product offering and enhancing our digital capabilities, all of which will position us better with our target customers. 

“Although we remain cautious, we are beginning to see some early signs of progress.

“Our capital raise has enabled us to strengthen our balance sheet and allows us to accelerate our investment into strategic initiatives, particularly our digital platform and brand websites.

“Whilst wider consumer dynamics remain uncertain as we emerge from lockdown, we have significantly transformed the shape of the business from where it was at the start of the pandemic.”