Neptune has made a return to profitable growth and promises a “step change” in its financial performance and brand development over the next year.
The luxury homeware retailer has posted a 68% increase in EBITDA to £3.4m for the year ended 30 September 2024, and said it was back to “strong profitable growth” in 2025.
The retailer’s financial results represent a significant shift in performance, with financial year 2022 ending with a £3.2m EBITDA loss.
Neptune said the business has been accelerated by a new leadership team, with new chief executive Mike Clark arriving in August 2024 from cycling brand Wiggle, and it was now on track for “a further step change in not only financial performance but also brand and product development”.
Neptune chairman Will Kernan, the former chief executive of River Island initiated a recovery plan two years ago with performance improving from September 2024, with EBITDA in the first half almost double that in the second half of the year
Kernan said: “The performance of FY24 reflects a further strengthening of the business, building on the recovery plan initiated when I joined the business in the summer of 2023. While underlying profitability improved year on year, initial progress of the plan was delayed. However, I am delighted by the significant transformation, and acceleration of general business performance post the arrival of Mike Clark, our new CEO.”
Neptune chief executive Mike Clark said: “The business is now aligned behind a clear strategy based on profitable growth which has driven greater alignment, delivery of key projects and a focus on full price sales. By the end of H1 FY25 (March 2025), the business has delivered a near doubling of EBITDA vs H1 FY24 whilst strengthening our customer proposition. The outlook for FY25 is looking robust and on track to beat forecasts as we look to build profitable growth through our heart of home focus.
“We have strong growth coming through Kitchen and exciting plans for both our living and dining categories. Our vertical model coupled with clear improvement initiatives has led to strong margin improvement and will support us strengthening our proposition over the coming 12 months. The positive momentum this year is a credit to the team and everyone who works within and around Neptune as we continue to deliver a world class leading experience for our customers.”
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