Boohoo’s full-year revenue fell by 25% to £917mn (£891mn expected), driven by the group’s shift to a marketplace model where only commission, rather than the full transaction value, is recognised as revenue.
Underlying cash profit (EBITDA) rose 35% to £53mn (£51mn expected), helped by the higher margins typically earned on marketplace sales, as well as continued costs savings and contract renegotiations.
Free cash outflows more than halved to £18mn. Net debt rose 19% to £93mn.
In the year ahead, underlying cash profits are expected to grow at double-digit rates (£56mn expected). Free cash flow is forecast to turn positive and net debt is also expected to fall to below 1 times underlying cash profits.
The shares fell 2.0% in early trading.
Our view
HL view to follow.
Boohoo key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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