The Very Group, which is chaired by former Chancellor Nadhim Zahawi, lost more in the first quarter of its new financial year than it did in its last 12 months, it has been revealed.
The Liverpool-headquartered group, which is owned by the billionaire Barclay family, has reported a pre-tax loss of £22.9m for the 13 weeks to 28 September, 2024.
The new figure compares to the £5.8m pre-tax loss it posted for the same period in 2023 and the £15.8m it lost in the 12 months to 29 June, 2024.
The first quarter results also show that the Very Group’s revenue declined from £473.4m to £450.2m in the period.
For its latest financial year, the group’s revenue totalled £2.12bn.
The results come after Sky News reported in October that the Very Group is exploring a sale that could value it at around £2bn.
Very Group targets ‘strengthening’ profit
In a statement signed off by the board, the Very Group said: “As expected, the market in Q1 FY25 proved challenging given ongoing economic pressures.”
However, the group did point to its adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) rising by 7.8 per cent to £56.7m.
It added: “Whilst we have seen challenges in the retail market, particularly within fashion and sports, our home sales have improved which also generate a high margin.
“As we continue to focus on higher margin sales and cost discipline, we expect to see a strengthening of the profitability of our business in FY25.”
Very UK’s revenue, which makes up 87 per cent of the group’s sales, fell by 3.8 per cent to £392.1m in the first quarter. Littlewoods’ revenue also dropped by 14.4 per cent to £45m.
The group added that electrical sales fell by 4.4 per cent at Very UK while revenue on toys, gifts and beauty also declined by 4.1 per cent.
However, Very Group added that within that category, boys’ toys rose by 7.7 per cent and beauty increased by 4.2 per cent.
Its home division saw a 2.8 per cent rise in sales but fashion and sports dropped by 8.6 per cent.