Very Group reports record full-year revenue as profits grow

The Very Group has reported record full-year sales driven by strong revenue at its namesake Very brand.

Group revenue grew 13 percent to a record 2.32 billion pounds in the 12 months to July 3, driven by a 24.9 percent jump in retail sales to 1.54 billion pounds. Very revenue was up 18.2 percent to 1.88 billion pounds.

Meanwhile, group profit before tax increased by 68.8 percent to 81.7 million pounds thanks to a strong performance by Very and improved cost management.

App sales were up 45 percent, boosted by “a more personalised, intuitive app experience”.

The group’s customer base increased by 7.6 percent to 4.82 million, thanks in part to a 12.4 percent increase at its Very brand to 3.82 million.

Exec changes

The company also bolstered its executive team during the year, hiring former BBC technology director Matt Grest as chief information officer and naming former Fenwick CEO Robbie Feather, who will join in late 2021, as its retail managing director.

“I am pleased to report outstanding group performance, including record revenue, continued profit growth and strong cashflow generation,” said group CEO Henry Birch in a statement.

Very Group’s underlying EBITDA increased 13.7 percent to 300.5 million pounds.

Birch added that the current environment is “not without challenge”, but said the group’s performance during the pandemic proved its multi-category offer “relevant to an increasingly wide number of customers”.

Looking forward, he said the group is in “good shape to face any future uncertainty”, and remains confident it is “well-positioned to take advantage of a market and customer behaviour that is moving towards our model”.

The trading update comes amid rumours of a potential upcoming IPO by the Liverpool-headquartered group.

In August, Sky News reported that Very Group had lined up Barclays, Morgan Stanley and UBS to spearhead a potential flotation on the stock market, which could take place next year.