Shares in N Brown Group PLC (AIM:BWNG) were little moved on Thursday despite interim results showing continued progress with profitability.
The online clothing retailer, owner of the Simply Be, Jacamo and JD Williams brands, reported a 6.7% decline in sales £277.2 million for the 26 weeks to 31 August.
Product revenue was down 7.9% and financial services revenue falling 4.6%.
The company characterising all three sales measures being on an improved “revenue trajectory” as the declines were less sharp than in the prior year, with “encouraging” trading during the first five weeks of the third quarter as the fall in product revenue improved to -2%.
Underlying profit (EBITDA) climbed 7.4% to £18.8 million, with a statutory profit before tax of £3.6 million compared to £0.1 million a year earlier.
For the full year, the company said it still expects EBITDA to be in line with management expectations,
Interim executive chair and chief executive, Steve Johnson, said N Brown had built on the return to profit seen in the past year, with a “focus on maximising profitable sales and managing the cost base in a soft trading environment.”
"We have continued to deliver against our self-funded transformational priorities, including the successful launch of the new JD Williams website and our product information management system to the remaining strategic brands, whilst our financial services transformation continues to progress well with the new platform now in testing.
“These developments will enhance the customer experience and will be supported by strengthened marketing activity to help position the business for sustainable profitable growth."