Manchester fashion retailer N Brown has today announced plans for a pre-emptive equity raise of around £100m.
It comes as the owner of SimplyBe, JD Williams and Jacamo reported revenue dropped 17.6 per cent to £356.7m for the six months to August 29, down from £432.9m for the same period the year before.
The group also reported adjusted pre-tax fell by 28.9 per cent to £22.6m, down from £31.8m in the same period in 2019.
N Brown chief executive Steve Johnson said: “Having restructured the business and transitioned to more than 90 per cent of revenues from digital, we now see a clear opportunity to capitalise on various industry drivers, not least the increasing trend towards online retail, and further improve our customer proposition.
“The proposed capital raise will give us the firepower to invest further in our digital capabilities and accelerate our growth strategy, whilst significantly strengthening the Group’s balance sheet to provide us with ongoing flexibility and a strong platform from which to deliver returns for all of our shareholders.”
The group also reported a 11.3 per cent fall in EBITDA, from £54.1 to £48.
N Brown said it is now in the “accelerate” phase of a “refreshed” strategy to drive digital growth, which it set out in June, and said it “made solid progress within the half”.
Mr Johnson said:“Our core, streamlined fashion brand proposition, supported by ever-more sophisticated digital capabilities, have driven a recovery in product sales since the initial impact of the pandemic.
“This has been supported by a strong uplift in Home and Gift sales following the launch of our new Home Essentials brand, with customers looking to improve their homes amidst the UK restrictions.
“We also continue to support customers wishing to use our flexible credit solutions.”
He continued: “Having restructured the business and transitioned to more than 90% of revenues from digital, we now see a clear opportunity to capitalise on various industry drivers, not least the increasing trend towards online retail, and further improve our customer proposition.
“Today’s separately announced proposed capital raise will give us the firepower to invest further in our digital capabilities and accelerate our growth strategy, whilst significantly strengthening the Group’s balance sheet to provide us with ongoing flexibility and a strong platform from which to deliver attractive returns for all of our shareholders.
“Whilst we are mindful of an uncertain UK retail environment, we are confident we can continue to build on the unique strength of the Group’s brands.
“We remain focused on creating a sustainable business delivering profitable growth over the long term.”
