Very Group manages to return to interim profit, despite sales decline

Liverpool-based online retail group, Very, has returned to interim profits, despite a fall in revenues, its latest figures reveal.

The group, which was formed from the original Littlewoods catalogue business and is now owned by the Barclay family, published its accounts for the six months to December 28, 2024.

They revealed revenues of £1.171bn, compared with £1.226bn in the six months to December 30, 2023.

However, the group managed to turn around a £2m pre-tax loss the previous year and post a £6.1m pre-tax profit.

This was after exceptional costs of £18.4m, compared with an exceptional cost of £11.8m the previous year.

The most recent exceptional costs comprise £7m logistics strategy costs, £6m spend on the tech acceleration programme, £5m of professional fees, £1.7m of restructuring costs and £0.5m of fulfilment costs, offset by £1.8m of provision releases. 

The group said, as expected, the market in its second quarter continued to prove challenging given ongoing economic pressures and as a result Very saw a decrease in total group revenue of 4.5% to £1.171.1bn.

It said, despite this it delivered an improved performance with a continued focus on cost control  contributing to increased adjusted EBITDA, up 17.4% year on year to £150.2m (Q2 FY24 YTD: £127.9m). 

Very said this represents one of its strongest ever earnings performance in absolute terms, and the highest ever adjusted EBITDA margin achieved as at Q2. 

The EBITDA performance, paired with careful working capital management, has, in turn, contributed to  improved operating cash flows, generating a cash inflow from operating activities of £85.3m, an increase of £184.7m on the prior year (Q2 FY24 YTD: outflow of £99.4m).

Overall, cash and cash equivalents decreased year on year by £9.1m to £29.7m (Q2 FY24: £38.8m) as a result of increased financing cash  outflows.

The group said: “As we continue to focus on higher margin sales and cost discipline through the remainder of FY25, we expect to see a continued strengthening of the profitability of our business.”