The Very Group faces significant financial challenges as losses deepen.
- The group’s pre-tax loss widened to £22.9 million from £5.8 million the previous year.
- Operating profit decreased by 35%, with a total revenue decline of 4.9% year on year.
- Very UK’s sales dropped by 3.8%, while Littlewoods’ sales fell 14.4%.
- Despite difficulties, homeware sales saw a modest increase of 2.8%.
The Very Group reported a significant widening in its financial losses for the 13 weeks ending 28 September, with pre-tax losses escalating to £22.9 million compared to £5.8 million the previous year. This period reflects the ongoing economic pressure that has impacted the group’s overall performance.
Operating profit saw a substantial decline of 35%, amounting to £27.6 million for the period. Moreover, total group revenue fell by 4.9% to £450.2 million, illustrating the challenging economic environment the group is navigating.
Within the group’s revenue structure, Very UK constitutes a major portion with 87% of total sales. However, sales for this brand experienced a decrease of 3.8%, reaching £392.1 million year on year. Similarly, the Littlewoods brand faced a sales drop of 14.4%, down to £45.0 million. This trend aligns with the group’s strategy of gradual decline management for Littlewoods.
Despite the overall downturn, the group observed some positive developments in specific areas. Homeware sales increased by 2.8% year on year, contributing to higher margins for the group. Meanwhile, the premium fashion segment recorded a modest growth of 1.6%, despite an overall 8.6% decline in fashion and sports sales, a result of a highly discounted and contracting market.
Pre-exceptional EBITDA for the Very Group came in at £54.5 million for the quarter, marking a 10.1% decline from the previous year. The company remains focused on enhancing profitability through maintaining cost discipline and prioritising higher margin sales.
The Very Group anticipates improvements in profitability through strategic focus amidst continuing economic challenges.
