The Very Group reports a notable increase in profits, highlighting effective cost control and strategic initiatives.
- EBITDA rose by 8.4% to reach £267.6 million, showcasing financial resilience.
- Despite an overall sales decline, UK market performance showed a slight increase.
- Strategic efforts include a shift to the Skyscape platform and a new brand campaign.
- The company pursued a takeover of N Brown, signalling expansion ambitions.
In the latest annual financial report, The Very Group has announced a significant rise in profits, underscoring the effectiveness of its careful cost management strategy. EBITDA for the year ending 29 June increased by 8.4%, reaching £267.6 million. Pre-exceptional operating profit also saw a notable jump of 17.1% to £218.3 million. This financial outcome reflects the company’s ability to reduce operating costs as a percentage of revenue to a record low of 23.2%.
While The Very Group experienced a 1% decrease in overall sales, bringing the total to £2.13 billion, the UK segment showed resilience with a 0.7% increase. This achievement is attributed to the company’s strong retail performance, which has remained ahead of the UK online non-food market.
The company has continued to pursue its strategic pillars, including the ongoing re-platforming to its cloud-based Skyscape platform, aimed at enhancing operational efficiency. Additionally, The Very Group has launched a new app for its Ireland customers, further bolstering its digital infrastructure. This was complemented by a fresh brand marketing campaign, enhancing customer engagement.
Robbie Feather, CEO of The Very Group, commented on the positive results, stating: “In a challenging environment, our results reflect a resilient retail performance that remained ahead of the UK online non-food market, as well as a continued strong Very finance performance.” His remarks highlight the company’s strategy of focusing on both top-line resilience and cost-effective management to drive earnings growth.
Furthermore, The Very Group recently made headlines by submitting a takeover proposal for N Brown. This move, coming just before N Brown accepted a deal from a founding family member, signals The Very Group’s ambitions to expand its influence in the ecommerce sector.
The Very Group’s strategic focus on cost management and platform enhancement has led to a strong financial performance, positioning it for future growth.
