LONDON (dpa-AFX) - Unbound Group plc (UBG.L), on Tuesday, issued an update on its trading performance in the year to 5th February 2023, and said trading conditions in the second half of the financial year have been more challenging.
Following a strong start to the year, revenue growth has slowed with a poor Q3 and November performance and a small return to growth in December and in January to date. Hence, the company now expects full-year revenue to be £53 million - £54 million, 3%-4% growth on the prior year.
Gross margins have been broadly in line with expectation. Given this, Unbound Group now expects to incur a pre-IFRS16 adjusted EBITDA loss of £0.75 million - £1.25 million and adjusted pre-tax loss of £4.25 million - £4.75 million, both pre-exceptional and after non-recurring costs of about £1 million, in FY23, below current market expectations.
Net banking debt as at 31 December 2022 was £8.8 million after investing £1.5 million in pre-payment of spring range extension stock. This provides current funding headroom of at least £1.3 million, which the Board expects will increase in Q1 of the financial year ending 4th February 2024 as the incremental inventory investment in working capital reverses.
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