N Brown faces Covid-19 “challenges” after revenues drop

N Brown posts 9% product revenue growth amid supply chain challenges
"It's encouraging to see full year customer numbers return to growth and to be closing the year with a strong balance sheet." - Steve Johnson.
// N Brown revenue declines in the year to February 27
// It is forecasting a return to revenue growth for its brands after “improved momentum”

N Brown has seen its revenue drop by 13 per cent to £729 million in the 52 weeks to February 27, after Covid-19 “challenges” affected the company.

Product revenue declined by 14.4 per cent to £468 million in the period, while financial services revenue decreased 10.4 per cent to £260 million.

However, the group is forecasting a return to revenue growth for its brands Simply Be, JD Williams, Jacamo, Ambrose Wilson and homeware brand Home Essentials, in 2021/22 after “improved momentum”.

READ MORE: N Brown announces boardroom change

Meanwhile, adjusted profit before tax dropped 49.4 per cent to £30.1 million during the period.

Adjusted EBITDA declined by 18.9 per cent to £86.5 million.

“In a year where we have all had to overcome multiple challenges, we have continued our transformation of the group through a relentless focus on our five strategic brands, improving our product offering and enhancing our digital capabilities,” chief executive Steve Johnson said.

“Although we remain cautious, we are beginning to see some early signs of progress and I was pleased to see product revenue from our strategic brands up 1.3 per cent in the fourth quarter, following a sustained recovery throughout the year and a resilient profit performance.

“Our capital raising has enabled us to strengthen our balance sheet and allows us to accelerate our investment into strategic initiatives, particularly our digital platform and brand websites.”

N Brown completed a £100 million capital raising and listing on London’s junior Aim stock market in December, which allowed it to repay all of its unsecured debt, and invest further in its digital capabilities and growth strategy.

It currently has a net cash position of £80.8 million.

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