“The Global Fashion Leader for a Social Generation”
|
£000 |
6 months ended |
6 months ended |
Change |
|
|
31 August 2016 |
31 August 2015 |
|
|
Revenue |
127,316 |
90,784 |
+40% |
|
Gross profit |
70,466 |
54,539 |
+29% |
|
Gross margin |
55.3% |
60.1% |
-480bps |
|
Operating profit |
14,053 |
5,976 |
+135% |
|
EBITDA (adjusted)(1) |
16,510 |
7,613 |
+117% |
|
Profit before tax |
14,364 |
6,270 |
+129% |
|
Cash at period end |
67,056 |
60,360 |
+£6,696 |
|
Earnings per share |
1.01p |
0.45p |
+124% |
(1): EBITDA (adjusted) excludes equity-settled share based payment costs of £0.5m (2015: £0.3m)
Highlights for the six months to 31 August 2016
· Revenue up 40% (41% CER(2))
o UK up 38%, rest of Europe up 41% (41% CER), USA up 93% (81% CER), rest of world up 17% (27% CER)
o International now represents 36% of total revenue
· Gross margin 55.3%, down 480bps (350bps due to planned investment in price and promotions, with retail gross margin being 57.0%; and 130bps due to third party(3) revenue)
· EBITDA (adjusted) was 13% of revenue (2015: 8.4%), reflecting efficiency improvements
· Broader product range driving growth
· 4.5m active customers(4), up 28% on prior year
· Strong balance sheet with net cash of £67m
(2): CER designates Constant Exchange Rate translation of foreign currency revenue
(3): Third party includes revenue from other channels and wholesale sales to retailers
(4): Active customers defined as having shopped in the last year
Mahmud Kamani and Carol Kane, joint CEOs, commented: “We are pleased to report a strong performance in the first half of the year, with robust growth across all regions and continued momentum in new customer growth.
Our inclusive brand, unbeatable choice, together with our incredible prices and fantastic service, continue to inspire and appeal to young customers around the world. Through our constant focus on what matters to our customers, together with our investment in technology and operational improvements, we will continue to deliver profitable growth.
As a result of our continued momentum in the UK and encouraging growth in selected overseas markets, we now expect revenue growth for the full year of between 30% and 35%, reflecting tougher second half comparatives. Following the success in the first half of the year we will continue to look for opportunities to invest in marketing campaigns and our customer proposition to drive future sales growth and improve customer lifetime value. We will also be making significant investments in our IT systems and Ecommerce platforms. Consequently EBITDA margin for the full year is expected to be around 11%.”
Investor and Analyst Meeting
A meeting for investors and analysts will be held at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN on 27 September 2016, commencing at 9.00am. A webcast will be available following the presentation via the following link: http://vm.buchanan.uk.com/2016/boohoo270916/registration.htm
