The Very Group returns to profit

Online retailer The Very Group has returned to profit and confirmed revenues have topped £2bn for the first time. 

The Merseyside-based company - which operates online retail brands Very.co.uk and Littlewoods.com - reported pre-tax profit of £48m for the year ended June 30, while revenues grew 2.9 per cent to £2.06bn for FY20, up from £1.99bn in 2019.

The group’s underlying EBITDA fell 2.9 per cent to £264.4m for FY20.

In 2019, the group, which rebranded from Shop Direct earlier this year, reported a loss before tax of £185.5m.

Retail sales at Very.co.uk increased 10.5 per cent to £1.2bn, driving the brand’s revenue up 6.8 per cent to £1.6bn. At Littlewoods, sales declined by 8.8 per cent to £460.9m.

The Very Group chief executive Henry Birch said the group’s return to profit was thanks to “our people and our flexible and resilient business model”.

“Despite the unprecedented challenges of the pandemic, the business has proven its adaptability yet again. 

“We delivered for record levels of new customers, who used the Very app for items to entertain their families and improve their homes, and increasingly valued our flexible ways to spread the cost.”

He continued: “We prioritised the safety of our colleagues, whilst remaining focused on customer experience.

“We migrated to, tested and launched Skygate, our new automated fulfilment centre, which enables us to process customer orders within 30 minutes, whilst materially reducing costs and is all set to support our Q2 peak trading period.

“The economic landscape will remain unpredictable. However, we believe our flexible and resilient business model, which gives customers access to the brands they love via flexible ways to pay, will help us thrive as customers continue to rely on online shopping.”