Online fashion retailer Boohoo Group PLC (AIM:BOO) saw revenues slide 17% to £1.46 billion in the 2024 financial year, leading to statutory losses before tax of £159.9 million compared to £90.7 million of losses in 2023.
All the while net debt multiplied from just £5.9 million to £95 million due to capital expenditure and inventory purchases to facilitate US-based expansion.
Cash inflow was minimal at £100,000, significantly reduced from the previous year's inflow of £130.9 million.
Chief executive John Lyttle attempted to redirect focus on forward opportunities for the group.
“We continue to take actions to deliver on our goal of bringing the entire group back to profitable growth,” he said.
“In FY24, we completed our investment cycle with the launch of our US distribution centre and the successful delivery of our Sheffield Automation project.
"Sheffield is already delivering significant efficiency improvements, which, together with the traction of Debenhams marketplace, is generating margin improvement across the group."
Despite the pre-tax loss, adjusted underlying earnings came in at £58.6 million, albeit a 7% drop from 2023’s £63.3 million.
Boohoo is undertaking a turnaround programme to save costs, improve its cash position and drum up stronger demand.
Although sales dipped throughout the full year, management noted that the decline was weighted to the first half and an improvement in the second six months highlighted a positive trend performance for its brands such as Karen Millen, PrettyLittleThing and Debenhams.
Looking forward, the group expects ongoing cost reductions to lead to annualised savings of £125 million as it reduces spending on goods, supply chains and overheads.
Therefore, Boohoo is hopeful it will be able to generate positive free cash flow in the next financial year.