RE: Panmure Liberum30 Mar 2026 09:48
Investing.com -- Debenhams Group, formerly known as Boohoo Group PLC (LON:DEBS), on Monday reported adjusted EBITDA of £53 million for the fiscal year ended February 28, 2026, exceeding its previous guidance of £50 million and marking a 36% increase YoY.
The company also raised its fiscal 2027 outlook, projecting double-digit percentage growth in adjusted EBITDA.
The online fashion retailer delivered a 76% increase in second-half adjusted EBITDA, driven by its transition to an asset-lite marketplace model. The company exited February with gross merchandise value down 5% YoY, representing three consecutive quarters of improvement in GMV trends.
Net debt stood at £90 million at year-end, representing less than 2x adjusted EBITDA leverage, with the company guiding toward 1x leverage by the end of fiscal 2027.
Shares rose 1.2% following the announcement. The company achieved a fixed cost exit rate of £119 million, below its £130 million target, down from £175 million in fiscal 2026, and remains on track to reach its £100 million target in fiscal 2027.
"Our multi-year turnaround strategy continues at pace. We are pleased with the 76% increase in H2 Adjusted EBITDA and £53m full year Adjusted EBITDA," said Dan Finley, Group CEO. "Our pivot to the stock-lite, capital-lite, highly profitable marketplace is working."
The company expects significant cash flow improvements in fiscal 2027. Lease costs are projected to decline to approximately £13 million from £18 million, with further reductions to approximately £6 million once the vacant US property lease is exited.
Capital expenditures fell to approximately £16 million in fiscal 2026 from £28 million and are expected to decrease further to approximately £8 million in fiscal 2027.
Depreciation is forecast to fall to approximately £20 million in fiscal 2027 from approximately £59 million, reflecting the lower asset base following transformation-related write-offs. Interest costs of £21 million in fiscal 2026 are expected to decline as the company disposes of non-core property assets.