Clothing & ShoesOnline & Digital

Very Group to return to profit as revenues pass £2bn

The Very Group has forecasted a return to profits for the FY20 as it revealed annual group revenues passed £2bn for the first time.

In a trading update for the full-year ending 30 June, the company said it saw a 65% increase in website visits driving “exceptional” retail sales growth of 36% at Very.co.uk in the final quarter of FY20, leading to full year growth of over 10%.

The group said the performance was driven by growth in electrical and home categories of 78% and 53% respectively.

Full-year underlying EBITDA is expected to be in the range of £255m to £270m which Very Group management said it expects to deliver a positive profit before tax.

The group also reported strong group liquidity and cash position with year-end cash headroom of over £200m.

Henry Birch, CEO at The Very Group, said: “Thanks to the tireless efforts of our colleagues, we performed very strongly in Q4 despite the challenges of COVID-19. We prioritised the safety of our people and delivered an uninterrupted service for new and existing customers, who chose us as their preferred shopping destination during lockdown.

“As in the financial crisis, our business model proved adaptable and resilient in the face of volatile conditions and changing consumer buying patterns. We experienced peak trading levels and recruited unprecedented levels of new customers as our online multi-category model supported by financial services came to the fore.”

He added: “Economic conditions will continue to be challenging, but we believe we are more relevant than ever for customers, who are increasingly buying online. We are well positioned to continue the strong trading into the new financial year and will continue to invest to ensure we are at the forefront of whatever the new normal may be.

“Our purpose to “Make good things easily accessible to more people” is more relevant than ever and we look forward to helping even more UK shoppers seamlessly access the products they need for themselves and their families.”

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