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The Very Group has revealed that its profit before tax has dropped to £4.6m for the 52 weeks ended 1 July 2023, down 92% compared with the £63.9m it posted last year.
The company stated that this was down to the heightened cost of funding the company after its finance costs rose 43.5% in the period.
Alongside this, the company posted an adjusted EBITDA of £276.5m a drop of 5% from the £291.4m it saw last year.
Despite this, the company’s revenue actually increased 1.9% from £1.79bn last year to £1.82bn this year.
Furthermore, the Very Finance revenue grew 6.1% to £422.1m up from £397.9m in the same period last year.
The group attributed this to a strengthening in its debtor book, which increased 3.6% to £1.71bn, up from £1.65bn.
Lionel Desclée, CEO, said: “Despite challenging economic conditions, our adaptable business model has driven market-beating top-line growth, improved cash flow year-on-year, and our best-ever customer satisfaction score. It’s down to the investments we made in pricing and our digital customer experience, our cost discipline, and the commitment of our people in serving families in the UK and Ireland.
“In the year ahead, we will continue to deliver a combination of investment-led growth – with a clear focus on improving our digital customer experience – and diligent cost management. While the market will remain challenging, we’re confident our proven and resilient business model, which combines multicategory online retail with flexible ways to pay, will continue to deliver for our customers.”
