N Brown Group has seen a notable increase in profits for the first half of the year, marking a positive shift in its financial performance.
- The group reported a profit before tax of £3.6m, a significant rise from £0.1m compared to the previous year.
- Adjusted EBITDA also rose by 7.4% year-on-year, reaching £18.8m, with margins improving by 0.9 percentage points.
- Despite the positive profit figures, overall group revenue experienced a decline of 6.7%, attributed to challenging market conditions.
- Enhancements such as a new website for JD Williams and improvements to strategic brand systems are part of ongoing transformations.
N Brown Group has reported a marked improvement in its financial results for the first half of the fiscal year, with profit before tax rising to £3.6 million, a substantial increase from the £0.1 million recorded in the same period the prior year. This reflects the company’s ongoing focus on maximising profitable sales, even amidst difficult trading conditions.
During the 26 weeks ending 31 August 2024, the group’s adjusted EBITDA showed a growth of 7.4% year-on-year, amounting to £18.8 million. The adjusted EBITDA margin also saw a modest increase of 0.9 percentage points to reach 6.8%. This improvement in profitability was achieved against a backdrop of a 6.7% decline in group revenue, which stood at £277.7 million. The decrease in product revenue, which fell by 7.9% to £172.7 million, was primarily driven by unseasonable weather and a generally soft market environment.
The company, which operates well-known brands such as Simply Be, JD Williams, and Jacamo, has been investing in strategic enhancements to boost future growth prospects. These efforts include launching a new JD Williams website and implementing a product information management system across its remaining strategic brands. Steve Johnson, interim executive chair and chief executive, highlighted these initiatives as part of their package of self-funded transformational priorities aimed at enhancing customer experience and ensuring sustainable, profitable growth.
Johnson stated, “We have built on our return to profit in FY24 by delivering year-on-year progression in the first half of FY25. Our focus on maximising profitable sales and managing the cost base in a soft trading environment has ensured we remain on track to achieve management’s full year adjusted EBITDA expectations.” In the early weeks of the third quarter, N Brown reported encouraging trading results, with a noted improvement in the trajectory of product revenue, down by only 2% year-on-year.
Looking ahead, the group expects FY25 adjusted EBITDA to meet management’s unchanged expectations, supported by the continuation of enhanced marketing efforts. The early signs of improvement in the third quarter trading provide a cautiously optimistic outlook for the remainder of the fiscal year.
N Brown Group’s strategic enhancements and focus on profitability have led to a promising financial outlook.
