Boohoo Group PLC (AIM:DEBS), the online retailer now operating as Debenhams Group, reported a return to profitability across all its brands in the first half of its financial year, despite a fall in sales.
Adjusted EBITDA rose 5% year-on-year to £20 million in the six months to 31 August, while statutory losses from continuing operations narrowed to £3.4 million from £126.7 million.
Revenue fell 23% to £296.9 million, while gross merchandise value (GMV, which is the value of goods sold via the group’s new marketplace model) fell 19% to £630.8 million, or 23% to £406.9 million when returned items are taken into account.
Growth at the Debenhams brand was highlighted, with GMV increasing 20% and EBITDA jumping 50% at a margin of 15%.
Marketplace sales now represent 32% of GMV, up from 19% a year earlier.
Chief executive Dan Finley said: "Our turnaround is gathering real pace. We are making progress, we are moving fast, and we are transforming the business. We have returned all our brands to profitability and grown adjusted EBITDA. These results show that our strategy is working."
This was helped by cost-cutting, where efforts continue, with inventory and capex both reduced by around 35-50%, and fixed costs by £160 million since February. Net debt also fell 22% to £111 million.
The group expects full-year EBITDA of approximately £45 million, with further growth in FY27.
Boohoo reiterated plans to change its corporate name to Debenhams Plc, subject to major shareholder support, after Mike Ashley's Frasers Group PLC (LSE:FRAS) was successful in blocking its last attempt in March.