RE: Potential trading update this Friday or Monday!!!!2 Sep 2020 22:06
Financing and acquisitions update
Today, the Group is pleased to announce the acquisition of the online businesses and all associated intellectual property of two brands, Oasis and Warehouse, for £5.25m in cash from Hilco Capital Limited. Oasis and Warehouse are two well-established brands in the UK targeting fashion forward shoppers and are a complementary addition to our portfolio of brands.
In line with previous acquisitions, the Group will, in the coming months, integrate Oasis and Warehouse onto its platform, allowing both brands to benefit from the Group’s insight, infrastructure, supply chain and operating model. In their most recent financial year ending February 2020, unaudited management information shows that Oasis and Warehouse generated direct online revenues of £46.8 million in aggregate.
On 28 May, we successfully completed the purchase of the remaining 34% minority interest in prettylittlething.com Limited (“PLT”). The Group continues to expect this acquisition to be significantly earnings enhancing, with PLT delivering a strong trading performance in the period, and the acquisition continues to represent an important further step towards achieving our vision to lead the fashion e-commerce market globally.
In addition, on 15 May, the Group raised gross proceeds of £197.7 million from shareholders through a placing in order to take advantage of numerous M&A opportunities that are likely to emerge in the global fashion industry over the coming months. The Group continues to appraise opportunities and will update shareholders in due course. We finished the quarter with in excess of £350 million of net cash on our balance sheet.
Outlook and Guidance
For the current financial year ending 28 February 2021, the Group expects to deliver another year of strong profitable growth, and ahead of market expectations. Revenue growth is anticipated to be approximately 25% for the current financial year, with an adjusted EBITDA margin of 9.5% to 10%. This guidance reflects our expectation for an ongoing period of consumer uncertainty, likely promotional intensity in markets in which we operate, as well as continued near-term carriage inflation for some of our overseas markets. This guidance also reflects ongoing investments into our more established brands as well as anticipated investments into new and recently acquired brands through the course of the financial year.
In the current financial year we will continue to invest into our infrastructure and operations to support our future growth ambitions, with capital expenditure expected to be in the region of £60 million to £80 million. The strength of our trading and operational performance in the period further
underpins our confidence in our medium term guidance for 25% sales growth per annum and a 10% adjusted EBITDA margin, which remains unchanged.
John Lyttle, boohoo group plc CEO, commented:
“During unprecedented and challenging times, the Group has delivered a very strong tradin
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