RE: September 202315 Feb 2024 17:03
"H1 24 Financial Overview
Statutory profit before tax of £3.3m (H1 23: £(17.7)m loss) includes £36.3m from the disposal of brand rights in the APAC region, which was formally approved by shareholders in May, offset partially by a non-cash impairment charge of £10.2m against store assets. Group Revenue declined 23.5% on the same period last year, with Retail down 13.1% and Wholesale down 41.1%. Ecommerce sales down 19.1% and impacted by the challenging trading environment, warmer weather, as well as a profit focused reduction in spend on digital marketing. Store sales performed more robustly but were still down 9.9% and impacted by the unseasonal weather and timing of promotions. Wholesale sales down 41.1% as the segment continues to underperform expectations and is impacted by a combination of factors that include declining volumes and structural changes within the broader market, but also strategic decisions taken by the business, such as the decision to exit our US operations, brand rights sales and continued clearance activity. Gross margin improved by 1.9 percentage points, largely driven by changing channel mix and price inflation, offset by markdown participation to clear aged stock. Total operating costs down 16.1% with significant reductions across selling and distribution and central costs, further validating our ongoing efforts to rightsize our operating cost base. Adjusted loss before tax increased to £(25.3)m (H1 23: £(13.6)m), reflecting the weaker revenue performance, a non-repeating FX gain in the prior year and increased finance costs of £9.3m (H1 23: £2.6m). Working capital reduced by £36.6m when compared to the same period last year. This was driven by our stock clearance programme, with inventories reducing by 24.2% to £130.9m over the period, combined with a reduction in both payables and receivables, reflecting the contraction in revenues, particularly within Wholesale. Net debt was £(28.9)m, marginally up on our closing FY 23 figure of £(25.6)m, but an improvement on the same period last year (H1 23: £(38.0)m) and reflects the completion of the APAC transaction and equity raise, offset by movements in working capital, lease repayments and increased finance costs."
source: same interim results
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