A UK multi-brand retailer has reported increased sales in furniture and beds for the year ending June 29, 2024. However, the company, The Very Group, faced significant challenges, resulting in a net loss of £24.4 million, a sharp increase from £3.9 million the previous year. This downturn was primarily due to over £50 million in additional finance costs linked to persistently high interest rates.
Photo: The Very Group.
Despite these losses, adjusted EBITDA rose slightly by 1.3% to £280.1 million, although cash flow remained a concern as the group used £76.5 million from operating activities. Nevertheless, cash reserves grew to £53.3 million, up from £39.6 million in 2023, while net debt rose to £2.3 billion from £2.2 billion the previous year.
Overall revenue decreased by 1.0% to £2.13 billion, with home sales dipping by 2.5% to £222.8 million. The home category outperformed fashion and sports, but lagged behind toys, gifts, beauty, and electricals, which remained the largest segment at £745.4 million. Specifically, sales of beds increased by 6.2%, countering a 5.1% drop in upholstery.
Source: www.thefurnishingreport.com