Investor Presentaiton
REVIEW OF THE BUSINESS
BOOHOO GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2021
PERFORMANCE DURING THE YEAR
OVERVIEW
Revenue
Gross profit
Gross margin
EBITDA
+41%
2021
2020
£ million
£ million
Change
1,745.3
1,234.9
945.2
666.3
+42%
54.2%
54.0%
+20bps
153.9
115.6
+33%
% of revenue
8.8%
9.4%
-60bps
Profit before tax
124.7
92.2
+35%
Diluted earnings per share
7.25p
5.35p
+36%
Net cash at year end
276.0
240.6 +£35.4 million
Adjusted measures:
Adjusted EBITDA²
% of revenue
Adjusted EBIT³
% of revenue
Adjusted profit before tax4
Adjusted diluted earnings per share
1. Net cash is cash less borrowings.
173.6
126.6
+37%
10.0%
10.2%
-20bps
149.3
107.0
+40%
8.6%
8.7%
-10bps
149.9
108.3
+38%
8.67p
5.88p
+47%
2. Adjusted EBITDA is calculated as profit before tax, interest, depreciation, amortisation, and share-based payment charges.
3. Adjusted EBIT is calculated as profit before tax, interest, share-based payment charges, and amortisation of acquired
intangible assets.
4. Adjusted profit before tax is calculated as profit before tax, excluding share-based payment charges and amortisation of
acquired intangible assets.
5. Adjusted diluted earnings per share is calculated as diluted earnings per share, adding back amortisation of acquired
intangibles, share-based payment charges, and adjusting to 34% of the non-controlling interest as in previous years
(affects prior year comparative only).
GROUP OVERVIEW
Group revenue for the year
increased by
41% (41% CER) to £1.745 billion (2020:
£1.235 billion). Revenue growth across all
territories and brands was strong. Our longer-
established brands continued their strong
growth, whilst the newer brands delivered
rapid incremental growth as they were
refreshed and relaunched.
Adjusted EBITDA was £173.6 million (2020:
£126.6 million), an increase of 37% on the
previous year. Through leverage of overheads
and tight control of costs, we were able
to largely offset the increase in overseas
distribution costs caused by the pandemic
and were able to deliver an adjusted EBITDA
margin of 10.0% (2020: 10.2%). Profit
before tax was £124.7 million (2020: £92.2
million), an increase of 35%. Adjusted diluted
earnings per share was 8.67p, up 47% on the
prior year. Diluted earnings per share rose to
7.25p, an increase of 36% (2020: 5.35p).
Cash generation was strong, with operating
cash flow of £201.1 million (2020: £127.3
million). Net cash flow was £30.6 million
(2020: £47.6 million), following significant
infrastructure capital expenditure of £49.3
million, the acquisition of the new brands and
associated intellectual property for £73.4
million and the remaining minority interest
in PrettyLittleThing for £161.9 million (a
related party transaction). The share placing
raised £195.7 million net of issue costs and
£39.4 million was spent on the purchase
of own shares for the Employee Benefit
Trust. Our net cash balance at the period
end increased to £276.0 million (2020:
£240.6 million).
Our priority throughout the pandemic has
been to ensure the safety of our colleagues,
customers and partners by following
government guidelines on safe working
practices. We have been able to continue
operating our facilities on this basis, which
has kept the business functioning with
the
support of all parties involved. During
this period, in light of its strong trading
performance, the
has not claimed any
of the UK Government's financial support
packages for businesses.
The
group
group has continued to benefit
from strong growth across all brands and
geographies, as the convenience, pricing,
product range and customer service
resonated with consumers, even more so in
these unprecedented times. Customer return
rates across all geographic regions have been
lower than in the pre-pandemic period, with
fluctuations towards levels closer to normal
during periods of easing of lockdowns.
Active customer numbers in the last 12
months increased by 28% to 17.8 million.
We have seen an 8% increase in the number
of items per basket, which we are attributing
largely to the impact of the pandemic. Session
growth was 27%. Website conversion rate to
sale remained steady at 4.28%.
The three brands that we
acquired in the
previous financial year, MissPap, Karen
Millen and Coast, are growing well, with solid
foundations being built and the promise of
bright futures. In June 2020, we acquired
a further two new womenswear brands,
Oasis and Warehouse, which have a great
heritage and a strong following in the UK.
Both brands started to trade on new websites
from late July and have made excellent
progress. In January 2021, we acquired the
online business and intellectual property of
Debenhams for £55.0 million, which we will
develop into a digital department store and
marketplace. In February 2021, we acquired
the Dorothy Perkins, Wallis and Burton
brands and inventory for £25.2 million, which
will broaden our demographic reach and
product offering. These three new brands
continued to trade on the former Arcadia
platform for a three-month period, pending
transition to our platform. We are very excited
about the potential of these new brands,
as they complement our successful and
comprehensive, multi-brand platform.
The remaining 34% minority interest in
PrettyLittleThing was acquired in May
2020, ahead of the original 2022 option-
to-acquire date, for a combination of cash
and shares with initial consideration £269.8
million, potentially rising to £323.8 million.
PrettyLittleThing is continuing to trade
very well, with high-growth rates across all
territories and the acquisition resulted in
substantial earnings enhancement for the
group's shareholders. We remain excited
about PLT's long-term prospects and the
value creation opportunity that exists for the
group's shareholders.
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