N Brown has swung to a half-year loss for the 26 weeks to September 2 blaming “market conditions” and “unseasonable weather.”
The JD Williams, Simply Be and Jacamo owner reported a loss before tax of £4.1m, down from a profit of £7.2m in the previous half year. Sales fell 10% to £297m, and product revenue was also down 11.2% to £187.5m. The company also reported that a “restructuring programme” initiated at the end of FY23 had led to total redundancy costs of £1.3m, although it did not give details of numbers or type of redundancies.
The company noted, however, that its product margin rate continued to improve, while H1 adjusted EBITDA performance was in line with the Board’s expectations, “supported by disciplined management of areas within the business’ direct control.”
N Brown also reported a strong balance sheet with “significant cash and cash equivalents, and total accessible liquidity of £133.1m.”
Steve Johnson, chief executive, said: “We expected external market conditions to remain soft and for the first half of FY24 to be particularly challenging. In response, we acted decisively to adapt to the trading environment and maintain real focus and discipline in areas which we can directly control, remaining on track to deliver full year adjusted EBITDA in line with the Board’s expectations.
“Alongside this, we’re pleased with the delivery of our strategy as we position the business for medium-term growth. Our investment across JD Williams, Simply Be and Jacamo has led to new commercial partnerships and technology upgrades to drive performance. We have a clear set of transformational priorities in train and expect to continue to deliver further progress during the second half of the year.
“Good work by our teams, including more efficient stock management, has helped generate cash and further improve our liquidity position in the half, providing a solid base for the continued investment in our priorities.”
