Made.com Group PLC (LSE:MADE) gave a bullish outlook statement alongside its record interim results, though it remains loss-making.
The furniture retailer said that visitor volumes are robust so it reconfirmed expectations of 40% year-on-year gross sales growth.
Full-year revenue is expected to climb around 65% to £410mln with positive adjusted underlying earnings (EBITDA), as the online platform said it can weather the current supply chain issues.
The forecast includes extended shipping times, range availability pressures and increased freight costs, but excludes delayed intake of goods into warehouses, which could delay revenue into next year’s accounts.
In the six months to 30 June, gross sales surged 54% to £213mln, with revenue up 61% to £171mln.
Adjusted EBITDA swung to a positive £1mln from a negative £11mln last year, however, last year’s statutory loss before tax of £15mln did not turn into a profit, but shrank to £10mln.
Net cash at period-end was £175mln and no dividend was proposed.
“We expect gross margin pressure to accelerate in the second half as the inflated industry-wide freight costs and higher raw material prices impact the entire period of the second half as against only partly impacting the first half,” analysts at house broker Liberum said.
“This will be more than offset by higher net revenue recognition in the second half which should lead operating cost leverage benefits and deliver a slightly positive EBITDA.”
Shares were flat at 155p on Tuesday morning.