(Alliance News) - A surge in digital sales was not enough for N Brown Group PLC to stave off an annual revenue fall, and the Jacamo-brand owner on Thursday also reported a heavy, though unsurprising, Covid-19 hit early in its new financial year.
In the year that ended February 29, revenue was down 6.1% to GBP858.2 million from GBP914.4 million. It was not all gloomy for the retailer however, as it swung to pretax profit of GBP35.7 million from a GBP57.5 million loss.
Exceptional items were much-reduced this time round, tumbling 80% to GBP28.5 million from GBP145.6 million. Customer redress costs were down by about half to GBP22.9 million, and there was an absence of store closure costs of GBP22.0 million and VAT costs of GBP49.4 million taken in financial 2019.
On an adjusted basis, N Brown noted pretax profit was down 29% to GBP59.5 million from GBP83.6 million.
N Brown did not pay a final dividend, so its annual payout is down 60% to 2.83 pence from 7.10p.
In financial 2020, digital sales accounted for 85% of retail revenue, up from 79%. Both womenswear and menswear digital sales climbed 5.5%, the SimplyBe owner explained.
Chief Executive Steve Johnson said: "In a year of restructuring for the group, Simply Be, JD Williams, Jacamo and Ambrose Wilson all grew digital revenue and following further progress in the first quarter of this financial year, 91% of our product revenue now comes from digital channels."
Its previous financial year ended just before the Covid-19 pandemic began to grip the market. In its first quarter of the new year, revenue was down 22%, though conditions in recent weeks have since stabilised, according to CEO Johnson.
"Trading in the first quarter of this financial year was impacted by Covid-19 but sales in recent weeks have shown an improving trajectory and cash collections have been stable. Operating costs are significantly lower than last year and net debt has decreased," the CEO explained.
The company also on Thursday announced Rachel Izzard will take over as its chief financial officer on Monday, replacing Craig Lovelace in a board change which was announced back in January. At the time, N Brown didn't give a leaving date for Lovelace, nor a start date for former Aer Lingus Ltd CFO Izzard.
Lovelace will depart on Sunday, N Brown said. He stayed in the role longer due to the Covid-19 pandemic.
"We are grateful for Craig staying on for a longer period of time than was intended, due to the restrictions of movement of people caused by the Covid-19 pandemic, to facilitate a smooth handover to Rachel," the company said.
N Brown shares were 3.6% higher at 40.31p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Brown Group (BWNG)