N Brown Group’s half-year results highlight a mixed financial performance, showing a significant rise in profits but a decline in revenues.
- The company’s profit before tax increased to £3.6m, a substantial rise from £0.1m the previous year, focusing on maximising profitable sales.
- Adjusted EBITDA also showed improvement, increasing by 7.4% year on year to £18.8m, with the margin up to 6.8%.
- Despite profit growth, group revenue decreased by 6.7% to £277.7m, and product revenue fell by 7.9% to £172.7m.
- The company has implemented several enhancements, such as launching a new JD Williams website and a product information management system, to support future growth.
During the first half of FY25, N Brown Group reported a profit before tax of £3.6 million, a substantial increase from £0.1 million the previous year, as it maintained a focus on maximising profitable sales. This strategy has helped drive a notable improvement in the company’s profitability metrics.
Adjusted EBITDA for the period rose by 7.4% to £18.8 million, and the adjusted EBITDA margin improved by 0.9 percentage points to reach 6.8%. This positive trajectory in core earnings metrics demonstrates the company’s effective cost management and operational adjustments.
However, N Brown Group faced challenges in terms of revenue, with overall group revenue falling by 6.7% year on year to £277.7 million. Additionally, product revenue experienced a 7.9% decline to £172.7 million. The company cited unseasonable weather and a soft market as key factors influencing this downturn in sales.
In response to these challenges, N Brown Group has introduced several strategic initiatives. Notably, they have launched a new website for JD Williams and rolled out a product information management (PIM) system across their strategic brands. These developments are expected to enhance the customer experience and streamline product offerings.
Interim Executive Chair and CEO Steve Johnson commented on the progress, expressing confidence in the company’s transformation efforts. He noted the importance of maximising profitable sales and managing the cost base in a challenging trading environment, while also highlighting encouraging trading performance at the start of Q3.
Looking ahead, N Brown Group has maintained its outlook for FY25 adjusted EBITDA, aligning with management’s expectations. The initial trading weeks of Q3 have shown promising signs, with product revenue trajectory improving by -2% year on year.
N Brown Group remains focused on achieving sustainable profitable growth through strategic enhancements and effective cost management.
