N Brown Group has transitioned from a loss to a profit, reporting £5.3m before tax for the year ending 2 March.
- Group revenue declined by 9.8% to £601 million due to challenging market conditions.
- The company’s focus on profitable sales drove a significant improvement in adjusted profit before tax.
- Product developments and strategic transformations were highlights for N Brown’s individual brands.
- N Brown’s CEO reported achieving strategic and financial objectives, driven by key market changes.
In a noteworthy turnaround, N Brown Group has reported a pre-tax profit of £5.3 million for the fiscal year ending 2 March. This marks a substantial improvement from the previous year’s loss of £71.1 million, with the change attributed to lower adjusting items and a strategic emphasis on profitable sales.
Although the overall group revenue experienced a decrease of 9.8%, amounting to £601 million, the company attributed this decline to continued challenging market conditions. Particularly, product revenue saw a drop of 10.6%, a reflection of N Brown’s targeted approach towards driving profitable sales rather than high-volume, low-margin transactions.
Despite these challenges, adjusted profit before tax increased by 171.4% to £13.3 million, largely due to the impairment of non-financial assets in FY23. Furthermore, the full-year adjusted gross profit margin rose by 1.5 percentage points to 47.7%, alongside a 1.2 percentage point increase in product margin. Such improvements were facilitated by a cleaner year-end stock position, focused sales strategies, and reduced freight rates.
The individual brands under N Brown Group made notable strides in product development. JD Williams introduced its Anthology premium line, while Jacamo expanded its offerings in smart casual wear, denim, and footwear. Simply Be enhanced its third-party partnerships, notably launching the sportswear brand Tala and offering selected lines in Sainsbury’s stores.
CEO Steve Johnson remarked, ‘We have delivered against our strategic and financial objectives this year.’ He highlighted the company’s commitment to its transformation plans and to building resilience through a strong balance sheet, with achievements in adjusted EBITDA exceeding market expectations. The company’s strong liquidity position allows for continued investment in strategic growth and further improvements in customer experience.
N Brown Group has successfully navigated a challenging market landscape to achieve profitability and strategic progress, showcasing resilience and adaptability.
