Ecommerce Giant Sees Pre-Tax Loss of £505.4m as Lenders Gear Up for Retail Business Control
- The Very Group reports a loss in its latest annual results after writing off a loan owed by the Barclay family’s holding company
- Pre-tax loss of £505.4m for the year to 28 June, down from a £16.3m profit the previous year
- Group sales fell 1.8% year on year to £2.09bn
- Adjusted EBITDA rose 15.9% year on year to £307.1m
- Discussions for sale or partial sale of The Very Group under a refinancing deal with lenders, including Carlyle and IMI Media Group
- The Barclay family’s 20-year ownership of the group will end with this deal
- CEO Robbie Feather highlights best-ever customer satisfaction score and significant earnings growth
The Very Group, an ecommerce giant, has reported a loss in its latest annual results after writing off a loan owed by the Barclay family’s holding company. The pre-tax loss amounted to £505.4m for the year ending 28 June, down from a £16.3m profit the previous year. Group sales fell 1.8% year on year to £2.09bn. However, adjusted EBITDA rose 15.9% year on year to £307.1m. The company is discussing a sale or partial sale under a refinancing deal with lenders such as Carlyle and IMI Media Group, which will terminate the Barclay family’s 20-year ownership of the group. CEO Robbie Feather highlights the best-ever customer satisfaction score and significant earnings growth despite the challenging economic backdrop.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about The Very Group’s financial performance, including losses, sales figures, and plans for a potential sale or partial sale under a refinancing deal. It also includes quotes from the CEO that support the company’s performance despite the challenging economic conditions.
Noise Level: 4
Noise Justification: The article provides relevant information about The Very Group’s financial performance and its plans for a potential sale or partial sale under a refinancing deal with lenders. It also includes comments from the CEO on their business model and customer satisfaction. However, it could benefit from more in-depth analysis of the reasons behind the loss and the impact of the loan write-off.
Financial Relevance: Yes
Financial Markets Impacted: The Very Group’s financial performance and potential sale or partial sale impact the company’s lenders, including Carlyle and IMI Media Group.
Financial Rating Justification: The article discusses The Very Group’s financial results, including a loss due to writing off a loan owed by the Barclay family’s holding company, and mentions ongoing discussions for a sale or partial sale of the company under a refinancing deal involving lenders such as Carlyle and IMI Media Group. This directly impacts the financial markets and companies involved in the deal.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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