The Very Group, overseen by former Chancellor Nadhim Zahawi, has reported a larger loss in the first quarter of its new financial year than in the entire previous 12 months. The Liverpool-based company, owned by the billionaire Barclay family, disclosed a pre-tax loss of £22.9m for the 13 weeks leading up to 28 September, 2024.
This is a significant increase from the £5.8m pre-tax loss recorded during the same period in 2023 and surpasses the £15.8m lost over the 12 months to 29 June, 2024. Revenue also fell, dropping from £473.4m to £450.2m in the quarter, while the group's revenue for the last financial year totalled £2.12bn, as reported by .
Very Group targets ‘strengthening’ profit
Following reports by Sky News in October that the Very Group could be exploring a sale with an estimated value of around £2bn, the company has now stated: "As expected, the market in Q1 FY25 proved challenging given ongoing economic pressures."
Nonetheless, the group highlighted a 7.8 per cent increase in its adjusted EBITDA to £56.7m and noted: "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."
The statement concluded with optimism: "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 º£½ÇÊÓƵ, which accounts for 87 per cent of the group's sales, saw its revenue fall by 3.8 per cent to £392.1m in the first quarter. Littlewoods also experienced a drop in revenue by 14.4 per cent to £45m.
The group noted that electrical sales at Very º£½ÇÊÓƵ fell by 4.4 per cent, while revenue from toys, gifts and beauty declined by 4.1 per cent. However, within this category, boys' toys saw a rise of 7.7 per cent and beauty increased by 4.2 per cent.
The home division reported a 2.8 per cent rise in sales, but fashion and sports saw a decrease of 8.6 per cent.
