N Brown sales decline 9.8 percent but profits rise

N Brown’s full year adjusted EBITDA margin of 7.9 percent was broadly in line with FY23, while group revenue decreased 9.8 percent to 600.9 million pounds, reflecting the continued challenging market conditions and a focus on driving profitable sales.

The company said in a statement that full year adjusted group gross profit margin increased 1.5ppts to 47.7 percent, statutory profit before tax reached 5.3 million pounds, and adjusted profit before tax was 13.3 million pounds, an improvement of 8.4 million pounds. Adjusted EBITDA beat the market’s expectation by over 5 percent at 47.6 million pounds versus expected 44.7 million pounds.

Commenting on the company’s financial performance, Steve Johnson, N Brown’s chief executive, said: "We have delivered against our strategic and financial objectives this year. We have kept to our transformation plans, despite the macroeconomic backdrop, whilst building resilience through our strong balance sheet, and achieving adjusted EBITDA above market expectations."

The rate of FY24's product revenue decline moderated at the start of FY25, with the first quarter declining by 6 percent. The company expects this improvement to continue as the year progresses and anticipates FY25 product revenue will return to a moderate level of growth, alongside a modest improvement in the rate of decline in financial services revenue and a gross margin rate consistent with FY24.

The company added that as previously announced, Ron McMillan retired as chair and stepped down from the board, as of 30 April 2024. Additionally, the company said, Vicky Mitchell will step down from the board to focus on other professional commitments following the annual general meeting in July 2024.

In June 2023, Dominic Appleton succeeded Rachel Izzard as chief financial officer and joined the board. In April 2023, Meg Lustman was appointed as an independent non-executive director. In July 2023, following the conclusion of the AGM, Gill Barr and Richard Moross stepped down from the board. Simultaneously, N Brown welcomed Clare Empson as director of supply chain and Natalie Rogers as chief people officer.