First-half gross merchandise value (total platform sales), before returns, rose 1.8% to £864mn. That was driven by double-digit growth at Debenhams.
Adjusted cash profit (EBITDA) grew at a faster pace of 13.9% to £24mn, due to improved margins and cost savings.
Net debt fell 8.3% to £102mn at the end of the period, with management expecting it to be ‘negligible’ by year end following recent disposals.
Management reiterated full-year guidance for double-digit growth in adjusted cash profit to at least £59mn and expects free cash flow to turn positive this year.
The shares were up 1.6% in early trading.
Our view
HL view to follow.
Boohoo key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
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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