Space NK sales break record, but investment dents profits
Space NK saw its turnover rising in its latest year with the 12 months to the end of March 2022 reaching £119.1 million. That compared to £111.8 million in the previous period, which had also included the results from Space Brands Ltd, a subsidiary that it sold at the end of that year for a profit of £83.1 million.
Profit on an EBITDA basis for the latest period was £2.29 million, compare to consolidated EBITDA of £92.78 million in the previous year, amplified by that additional boost from the subsidiary sale.
The company also made a net loss for the latest period of £620,768, compared to profit of £87.62 million in the previous year. Clearly, the shortfall wasn't only accounted for by the subsidiary sale’s profit distorting the prior period’s figures, with the additional dent to its profits coming as the company continued to invest.
It said that, in a period in which the world was still suffering from the effects of the pandemic, it enjoyed record-breaking sales and “made a number of deliberate strategic decisions, to continue to fuel that growth”.
This meant investing in stores, operations, technology and customer acquisition. In fact, this helped the business increase its active customer base by over 40%.
“While these actions impacted profitability, the company still delivered a positive EBITDA and has set a growth trajectory that the directors are confident will increase the company’s resilience and result in strong long-term growth,” it said.
Space NK added that for the future, it expects to see continued growth in online sales, although physical stores shouldn't suffer, as it has seen a return of sales and profitability here.
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