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The Very Group has announced it will receive a £125m funding package from investment firms Carlyle and IMI to support its growth strategy as it reported £2m half-year loss.
The funding package, of which £85m will be provided by Carlyle Global Credit and a further £40m by Abu Dhabi-based IMI, is immediately available for use by the Company.
As part of the agreement, Carlyle and IMI will each take a seat on The Very Group board. In return the group will benefit from the long-term support of two global institutions, including their network of relationships, industry expertise and capabilities.
The news comes as the group unveiled a half-year pre-tax loss of £2m, which said it was due to higher interest costs. Despite this, Very UK revenue grew 2.7% to £1.05bn and total online market share of 0.2% points year-on-year.
Pre-exceptional EBITDA increased 10.1% on the prior year to £130.7m, with an improved current year gross margin due to a strong Very Finance contribution.
Very also revealed that following two years in the role and having reached the end of his contract term, Dirk Van den Berghe has stepped down as non-executive chair to focus on his other non-executive roles as well as new opportunities. As a representative of the Barclay family in The Very Group, Aidan Barclay will assume the role of the Group until an appointment has been made.
Barclay said: “Carlyle and IMI provide the support of two long-term, experienced institutional sponsors that understand our business extremely well. Their commitment underlines the confidence they have in the group, and their contribution to the Board will be invaluable as we look to the future. I would like to thank Dirk Van den Berghe for his stewardship during his time as Chair and wish him all the best in his future endeavours.”
Taj Sidhu, head of European and Asian Private Credit at Carlyle, said: “We are delighted to expand our relationship with The Very Group and, alongside IMI, support an important phase of growth for the Company. We believe the Group has a compelling and resilient business model and is well positioned for further growth in the coming years and we look forward to working closely with them.”
Rani R. Raad, CEO of IMI, added: “We are very pleased to partner with The Very Group as it embarks on its next phase of growth. Together with Carlyle, we look forward to working closely with them as they deliver against their strategic objectives and growth ambitions.”
