TIDMITS
RNS Number : 6625V
In The Style Group PLC
15 December 2021
15 December 2021
In The Style Group plc
("In The Style", the "Company" or the "Group")
Interim Results for the six months ended 30 September 2021
A period of very strong revenue growth across all channels
against an exceptional prior period
In The Style, the fast-growing digital womenswear fashion brand
with an innovative influencer collaboration model, announces its
results for the six months to 30 September 2021 (the "Period").
Financial highlights in this report are provided on both a
year-on-year basis and two-year basis, reflecting the exceptional
trading performance and growth in the prior year period:
Financial highlights:
30 September 30 September 30 September
FY22 FY21 FY20
Financial KPIs GBP'000 GBP'000 Change GBP'000 Change
---------------- ------------- ------------- -------- ------------- -------- ---
Revenue 29,814 21,475 38.8% 8,630 245.5%
Gross Profit 14,033 10,907 28.7% 4,603 204.9%
EBITDA 1,196 2,476 (51.7%) (624) 291.9%
Profit Before
Tax (PBT) 890 1,827 (51.3%) (898) 199.2%
Cash Balance 9,894 4,310 129.6% 1,616 512.2%
---------------- ------------- ------------- -------- ------------- -------- ---
-- Impressive growth against an exceptional prior period in
spite of industry wide supply chain disruption, demonstrating
growing awareness of the distinctive In The Style brand and the
Group's flexible and agile model.
-- Revenue increased 38.8% to GBP29.8 million (H1 2021: GBP21.5
million); on a two-year basis revenue increased 245.5%:
o Direct-to-consumer (net) revenue increased 23.4% to GBP23.0
million. (H1 2021: GBP18.6m).
o Wholesale revenue increased 138.7% to GBP6.9 million (H1 2021:
GBP2.9 million).
-- EBITDA decreased to GBP1.2 million (H1 2021: GBP2.5 million; H1 2020 loss of GBP0.6m).
-- Profit Before Tax decreased to GBP0.9 million (H1 2021:
GBP1.8 million; H1 2020 loss of GBP0.9m).
-- Profitability impacted by industry-wide supply chain
disruption as well as a higher return rates versus the prior year,
in part reflecting sales growth of the Group's more inclusive size
ranges, which is being addressed through increased investment in
product and garment technology and fitting.
-- At the Period end the Group had cash of GBP9.9 million (H1 2021: GBP4.3 million).
Operational highlights:
-- Progress across all operational KPIs despite the
exceptionally strong prior year comparative period:
o Website visits increased 7.6%; on a two-year basis website
visits increased 63.3%;
o Conversion rate improved 26bps or 9.3% from 2.81% to
3.07%;
o Average order value increased 25.8%;
o Order frequency increased 23.4%
-- E-commerce Gross Order Value (gross sales pre returns)
increased 48% year on year and 185% on a two-year basis.
-- 243,000 new customers in the period, a growth of 3.8% year on
year, pleasing given the lockdown comparatives and representing
88.2% growth on a two-year basis.
-- Continued progress of the proprietary In The Style App, now
comprising 63% of total e-commerce sales (H1 2021: 54.5%).
-- Launched 10 new influencer partnerships, including singer and
TV personality Stacey Solomon, whose debut collection was amongst
the most popular in the brand's history.
-- Expansion of wholesale partnerships including the nationwide 100 store launch with ASDA.
Post Period end highlights:
-- The Group strengthened its senior management team with the
appointments of Sam Perkins as CEO and Adam Frisby as Chief Brand
Officer, positioning the business to deliver the next stages of its
long-term growth ambitions.
-- Two further influencer partnerships launched since the Period
end, including Love Island contestant Liberty Poole and TV
presenter Alison Hammond. Alison was the face of The People's
Collection, In The Style's most inclusive range to date which for
the first time allowed customers to influence both the design and
celebrity endorsement of a collection.
-- Since the Period end, return rates have reduced in line with
expectations reflecting the seasonal change in the product mix, and
we are confident of achieving a lower underlying returns rate over
the medium term.
-- Strategic brand expansion into the homeware category with the
launch of the debut In The Style Home collaboration in partnership
with influencer partner Olivia Bowen.
Current trading and outlook:
-- Since the end of the Period and through the important Black Friday and December
trading period so far, the business has continued to perform well with direct-to-consumer
sales continuing their strong growth trajectory.
-- As anticipated, sales to wholesale partners have been lower than the prior
year since the period end reflecting the phasing of orders, however the Group
remains confident in achieving continued progress through this channel in
the second half.
-- Notwithstanding the industry-wide supply chain disruption that is expected
to continue into the second half, the Board remains very confident in achieving
the Group's growth plans and the brand's very exciting potential. This is
underpinned by the strength of In The Style's differentiated business model
and distinctive brand as well as the investments made in the Group's leadership
team and infrastructure in recent periods.
Adam Frisby, CEO and founder of In The Style, commented:
"In The Style has continued to deliver very strong sales growth
and strategic progress during the first half of the financial year.
The business has continued to build on its exceptional growth in
the prior year, despite the reopening of physical retail and
lifting of social restrictions during the Period, which reflects
the strength of our brand and our truly differentiated influencer
collaboration model.
"During the period we continued to expand the business with the
launches of a number of exciting influencer partnerships, as well
as successfully developing the Group's growing wholesale channel
through the launch of our partnership with ASDA.
"Whilst the global supply chain and freight disruption that has
impacted across the industry is expected to persist for at least
the remainder of the year, we are pleased to report that the strong
sales performance achieved during the first half has continued
through Black Friday and into the festive trading period so far.
With this momentum, coupled with recent investment into our
scaled-up operational and senior management teams, we look forward
to continuing In The Style's exciting growth and achieving our
long-term vision for the brand."
Enquiries
In The Style Group plc
Jim Sharp, Non-Executive Chairman Via Hudson Sandler
Adam Frisby, CEO
Paul Masters, CFO & COO
Liberum Capital Limited (Nomad and Broker)
Clayton Bush
Scott Mathieson
Ed Thomas
Miquela Bezuidenhoudt +44 (0)20 3100 2000
Hudson Sandler
Alex Brennan +44 (0)20 7796 4133
Lucy Wollam inthestyle@hudsonsandler.com
Jake Brown
Notes to Editors
In The Style is a fast-growing digital womenswear fashion brand
with an innovative influencer collaboration model.
Founded in 2013 by entrepreneur Adam Frisby, the brand champions
female empowerment, inclusivity, body positivity and real
beauty.
The brand's innovative and highly adaptable influencer
collaboration model, which sees it work with influencers on a
long-term basis to collaboratively design, develop and promote
branded collections, differentiates it from competitors.
In The Style currently partners with a stable of 15 influencers,
including Stacey Solomon, Dani Dyer, Jacqueline Jossa and Billie
Faiers. Together they enjoy a combined global social media reach of
almost 30m followers.
Strategic Update
H1 Overview
In The Style continued to achieve very strong sales growth
during the first half of the financial year, with revenue
increasing ahead of the Board's initial expectations for the Period
by 38.8% to GBP29.8m. This very pleasing growth, which was
supported by strong trends across our primary operational KPIs
including website traffic, customer conversion, average order value
and customer order frequency was achieved despite the reopening of
physical retail and lifting of social restrictions in the Period,
which benefitted the online retail sector in the prior year. When
compared to the same period two years ago, In The Style increased
its sales by an exceptional 245.5%, which is a great testament not
only to the strength and increased profile of our brand, but also
the very exciting growth trajectory that the business is on
following our successful IPO in the second half of the last
financial year.
Despite the very strong top line growth, as previously reported
in our AGM Trading Update in September, we did experience some
headwinds during the Period which have impacted profitability.
Firstly, we have not been immune to the global supply chain and
freight disruption that has impacted across the retail sector
during recent months. Whilst we continue to seek to utilise the
most efficient channels wherever possible to ship product,
consistent with many retailers, we experienced increased freight
costs and disruption to the timing of shipments, which are expected
to remain for at least the remainder of the current financial year.
We continue to mitigate the supply chain issues as far as possible
through constantly reviewing our sourcing options and product
pricing strategies.
In addition, whilst customers have on average been spending more
with In The Style - which is a positive reflection of the strength
of our product ranges - we experienced a higher than anticipated
level of returns during the Period. This was partly driven by the
swing in customer demand towards occasionwear and away from the
less "fit sensitive" casual ranges that dominated the product mix
during the prior year. The returns rate was also impacted by a
higher than anticipated growth in sales of our more inclusive size
ranges where, again, product fit is paramount.
While we are very encouraged that our brand has proven its
appeal to an even broader demographic of customers across both
casualwear and occasionwear categories, we also recognise that
there are a small number of steps we can take to further optimise
this growth. We have already increased investment in our design
team and have adjusted our product fit process to better consider
more inclusive sizes. We have also enhanced our visibility and
speed of returns data, to make sure we can respond even more
quickly to any emerging trends going forward. Since the period end,
return rates have reduced as expected reflecting the seasonal
change in product mix.
As a result of all these factors, EBITDA for the Period was
GBP1.2m (H1 2021: GBP2.5m), and PBT was GBP0.9m (H1 2021:
GBP1.8m)
As we look forward to our future and how we continue to build on
our strong growth momentum, following the Period end we were
delighted to announce the appointment of Sam Perkins, formerly
Managing Director of the retail division at The Very Group, as our
new CEO with effect from 17 January. Having founded the company and
led the business for the last seven years, I have decided to become
Chief Brand Officer, a newly created Board level Executive Director
role with responsibility for developing the Group's influencer
partnerships and the brand's creative direction. Along with the
rest of the Board, I believe that with so many opportunities to go
for, this is the time to further strengthen our senior management
team and Sam is an outstanding executive to bring into our
business. He brings relevant experience of scaling up very
successful retail brands and his appointment will enable me to
focus on the areas of the business where the Board and I believe I
can make the biggest contributions to our future success. I'm
really looking forward to working closely with Sam to successfully
grow this wonderful brand and am incredibly excited about its
future.
Strategic Progress
We have a clear growth strategy for the long-term development of
In The Style as a leading digital brand in the large, high-growth
international female apparel market. This strategy is built on:
-- Continuing to build the In The Style brand by campaigning on
issues that are important to us and our customers;
-- Increasing our scale and reach through the expansion of our innovative influencer model;
-- Increasing our investment in brand marketing and growing our
relationships with selected partners; and
-- Pursuing other selected growth opportunities including
international expansion, extension of own brand sales, branching
out into new product categories and potential acquisitions.
This growth strategy is underpinned by our well-invested
infrastructure, our talented team of people and our commitment to
operating our business responsibly.
During the Period we continued to make strong progress against
our long-term growth strategy as well as achieving encouraging
trends across our primary operational KPIs:
Operational 30 September 30 September Change 30 September Change
KPIs FY22 FY21 FY20
----------------- ------------- ------------- ------- ------------- -------
Visits 26.9m 25.0m 7.6% 16.5m 63.3%
Conversion
rate 3.07% 2.81% 9.3% 2.07% 48.4%
AOV 52.75 41.93 25.8% 44.85 17.6%
Order Frequency 2.06 1.67 23.4% 1,57 31.2%
Continuing to build the In The Style brand
At the core of our strategy is the In The Style brand, which is
differentiated in the market as a result of our innovative
influencer collaboration model as well as our authentic brand
values which champion body confidence, real beauty and female
empowerment.
During the Period, In The Style expanded its appeal to a broader
customer base by extending its product ranges to incorporate more
inclusive sizing options. During the six months, a number of
collection launches featured 39 sizing options spanning curve,
petite, tall, core and maternity options. This move was received
very positively by customers, helping to drive engagement and
sales.
During the Period total new customers increased by 3.8%, which
was a pleasing outcome achieved against a very strong comparable
performance. On a two-year basis, new customers have grown by
88%.
The In The Style App, a key tool for customer engagement and
retention, continues to go from strength to strength with a further
500k downloads in the Period and now comprises more than 60% of
total sales. Upon the launch of Stacey Solomon's debut collection
in April, more than 100,000 customers used the In The Style App,
resulting in our App temporarily taking top place on Apple's App
Store chart on the day.
Increasing our scale and reach through the expansion of our
innovative influencer model
During the first six months of the year, In The Style launched
10 new influencer partnerships including singer and TV personality
Stacey Solomon, whose debut collection was amongst the most popular
in the brand's history.
Other notable partnership launches include influencer Elle Darby
(780k followers) with whom we launched the latest iteration of In
The Style's maternity collection in May, and influencers Terrie
McEvoy (250k followers) and Lisa Jordan (250k followers) both of
whom reflect the Group's expansion plans into the Republic of
Ireland. The Group has and continues to identify and select
potential partners against criteria that include brand 'fit' and
follower engagement as well as overall follower numbers.
Increasing our investment in brand marketing and growing our
relationships with selected partners
We delivered outstanding growth of 138.7% in our wholesale
channel, which comprises digital partnerships with ASOS, ShopDirect
and Lipsy as well as our partnership with ASDA, one of the UK's
largest retailers. The agreement, which launched in April, sees
selected In The Style collections available at more than 100 stores
and has significantly increased exposure for In The Style across a
core demographic group aged 25-35. We have been very encouraged by
its performance so far.
Furthermore, we are working closely with partner Zalando on a
test order basis and are pleased with the very positive trends we
are seeing through the platform. We will continue to work together
with Zalando to develop a successful long-term relationship.
Pursuing other selected growth opportunities
In The Style continues to actively pursue other growth
opportunities including through the expansion of the brand across
new geographies and categories.
The Group made progress against its plans to expand
internationally with the launch of a territory specific app and
partnerships with two influencers in Ireland, its initial target
overseas market. Both partnerships were received well by customers
and we will utilise our app and build on these initial launches
during the coming months.
Following the Period end, the Group launched the debut In The
Style Home collection. The collection, created and launched in
partnership with established In The Style collaborator Olivia
Bowen, marks the brand's extension into the fast-growing and
complementary lifestyle category. Further influencer led Home
launches are planned for the start of the new calendar year.
Continued investment in team, technology, and infrastructure
We have continued to invest in our people, infrastructure, and
technology to strengthen our foundations for continued growth.
In addition to the appointment of Sam Perkins as CEO, the Group
also strengthened the broader senior team during the Period, with
new senior hires across product, sustainability, people, and
technology teams. This investment in people illustrates our
confidence and excitement in the brand's future, as well as the
scale of our ambitions.
Following the Period end we were pleased to officially open our
new, larger head office in Manchester, which as well as being
equipped to support our long-term expansion plans, has brought our
head office team back together under one roof following a year of
COVID disruption and significant growth.
Operating our business responsibility
As a business we are resolutely focused on operating our
business in a way that embodies our values of being brave, being
true to ourselves and most importantly being kind both to ourselves
and to others.
We are very proud to have continued to raise money for the
Samaritans charity, with over GBP100,000 raised through sales of
our Kindness Collection.
Led by our CSR Committee and building on the existing
initiatives in place across the business, the Group continues to
move forward with our sustainability roadmap which has been
developed further grouping initiatives under three main pillars
being People, Planet and Community.
We continue to make rapid progress against the recommendations
outlined in the independent supply chain review undertaken pre the
IPO by Anthesis with 80% of all priority recommendations now
complete and the remaining 20% currently in work. Anthesis are
engaged with the business on an ongoing basis to provide advice and
additional expert resource to complement our in-house team.
Outlook
Since the end of the Period and through the important Black
Friday and December trading period so far, the business has
continued to perform well with direct-to-consumer sales continuing
their strong growth trajectory.
The business has again capitalised on demand for seasonal
products with Christmas pyjama launches via our influencers being a
firm customer favourite. As anticipated, sales to wholesale
partners have been lower than the prior year since the period end
reflecting the phasing of orders, however the Group remains
confident in achieving continued progress through this channel in
the second half.
As previously indicated by the Group, industry-wide global
supply chain disruption and increased associated costs are expected
to continue through at least the second half of the year. We
continue to actively manage these external challenges as far as is
possible and, so far, have successfully amended collection launch
timings and deliveries into wholesale partners to minimise
disruption. Detailed plans are in place to mitigate the longer-term
cost impact of these external headwinds through both sourcing and
product pricing initiatives.
We continue to take actions to improve the returns rate,
including improving the fitting process. Since the Period end,
return rates have reduced in line with expectations reflecting the
seasonal change in the product mix, and we are confident of
achieving a lower underlying returns rate over the medium term.
A further two influencer partnerships have successfully launched
since the Period end, extending the Group's differentiated
collaboration model and building on the positive momentum achieved
during the first half. Of particular note is the launch of the In
The Style People's Collection, created in collaboration with TV
presenter Alison Hammond, who enjoys a social media following of
more than one million. This collection, which has been well
received by customers, is the brand's most inclusive to date,
having involved customers every step of the way through consulting
on silhouettes, prints and colour palettes of the collection. In
addition, we were pleased to launch our first ever homewear
collection in collaboration with Olivia Bowen.
Notwithstanding the industry-wide supply chain disruption that
is expected to continue into the second half, the Board remains
very confident in achieving the Group's growth plans and the
brand's very exciting potential. This is underpinned by the
strength of In The Style's differentiated business model and
distinctive brand as well as the investments made in the Group's
leadership team and infrastructure in recent periods.
Financial Review
30 September 30 September 30 September
FY22 FY21 FY20
Financial KPIs GBP'000 GBP'000 Change GBP'000 Change
------------------ ------------- ------------- -------- ------------- --------
Revenue 29,814 21,475 38.8% 8,630 245.5%
Gross Profit 14,033 10,907 28.7% 4,603 204.9%
Gross Margin 47.1% 50.8% -372bps 53.3% -626bps
Operating Profit 903 2,026 (55.4%) (890) 201.5%
EBITDA 1,196 2,476 (51.7%) (624) 291.9%
------------------ ------------- ------------- -------- ------------- --------
Year on Year Performance
Group Overview
Following the Group's successful IPO in March 2021, the first
six months of the current financial year saw significant growth and
progress achieved across a number of key strategic objectives.
The rapid trading rhythm of the business continued with multiple
product launches each week ensuring newness and interest for In The
Style customers and helped to drive new customers and repeat order
frequency.
Revenue for the Period increased by 38.8% to GBP29.8m (H1 2021:
GBP21.5m) and increased by 245.5% when compared to H1 2020
representing a two year compound annual growth rate of 86%.
EBITDA, a non-GAAP metric used by the Board to provide a
meaningful analysis of trading results, decreased to GBP1.2m from
GBP2.5m in H1 2021 and compares to a loss of GBP0.6m in H1 2020.
Reported Operating Profit decreased to GBP0.9m from GBP2.0m in H1
2021 and compares to a loss of GBP0.9m in H1 2020. Cash at the
Period end amounted to GBP9.9m.
Revenue
Revenue across the Group's direct-to-consumer e-commerce
channel, which comprises sales through the Group's e-commerce
website and proprietary app, performed well, increasing 23.4% to
GBP23.0m and 191% when compared to H1 2020.
Underlying demand, represented by 'Gross Order Value' or gross
sales pre returns, increased year on year by 48.0%, the dilution in
growth at a net revenue level being the result of higher returns
rates driven predominantly by the product mix change away from
casual wear to occasion wear.
Headline sales growth was supported by increases in all of the
main e-commerce KPIs including: Visits (+7.6%); Conversion
(+26bps); and Average Order Value ("AOV") (+25.8%).
Operational KPIs 30 September 30 September Change 30 September Change
FY22 FY21 FY20
------------------ ------------- ------------- ------- ------------- -------
Visits 26.9m 25.0m 7.6% 16.5m 63.3%
Conversion rate 3.07% 2.81% 9.3% 2.07% 48.4%
AOV 52.75 41.93 25.8% 44.85 17.6%
Order Frequency 2.06 1.67 23.4% 1,57 31.2%
In spite of the tough 'lock-down' comparatives, new customer
numbers grew by 3.8% compared with the same period in the prior
year, with 243,000 customers transacting with the In The Style
brand for the first time.
The continued frequency of new product launches and investment
in customer relationship management ("CRM") activity has ensured
that alongside the growth in customer acquisition, order frequency
has also increased.
The In The Style proprietary app continued to go from strength
to strength during the period with more than 500,000 app downloads.
As a result, sales through the app increased to represent 63% of
total e-commerce sales, compared to 55% in H1 2021. Alongside
significant conversion rate benefits, the app provides a fantastic
platform to communicate with our most engaged customer group.
Wholesale sales to third-party retailers is an important element
of the In The Style growth strategy. The brand's presence on high
profile digital retail platforms such as ASOS, Shop Direct and
Lipsy and in physical retail environments through the partnership
with grocery retailer ASDA provides a profitable revenue stream and
access to a broader customer base, thereby increasing brand
awareness. Revenue from this channel increased by 138.7% to GBP6.9m
versus GBP2.9m for the same period in the prior year.
Gross Margin
Gross Margin, at 47.1%, reduced 372bps compared to the same
period in the prior year, impacted by a higher proportion of
wholesale sales in the overall mix, industry wide freight cost
increases and higher return rates.
E-commerce Gross Margin during the year decreased 58bps to 55.2%
(H1 21: 55.7%), as increases in freight charges and the impact of
higher rates of returns were offset to an extent by the higher
proportion of sales of occasion wear, which typically carry a
higher margin compared with the increased consumer demand for more
casual products we saw during the prior lockdown period.
Wholesale Gross Margins improved year on year to 19.9% (H1 21:
18.7%), reflecting an increased mix of full price sales. Whilst
wholesale Gross Margins are lower than those of direct-to-consumer
e-commerce sales, the management and fulfilment of wholesale
channel orders leverages much of the existing In The Style team and
infrastructure.
Operating Costs
Total Operating Costs increased 47.8% year on year to GBP13.1m.
This represents an increase as a percentage of Net Revenue from 41%
in the prior year to 44%, driven predominantly by the increased
returns rate. Excluding the impact of returns, Operating Costs
reduced slightly as a percentage of gross sales year on year.
Distribution costs increased to GBP5.5m (H1 2021: GBP3.7m). This
was due to the increased volume of product sold during the year. As
a percentage of Revenue year on year, the increased cost of
processing the higher level of returns was offset by the lower
costs associated with the distribution of wholesale orders, which
accounted for a higher proportion of the Revenue mix.
Administration costs increased to GBP7.7m (H1 2021: GBP5.2m).
Within this, marketing costs increased by GBP1.8m versus the same
period in the prior year. This was driven by a combination of sales
commissions reflecting the growth in influencer sales in the Period
and digital, outreach and 'shoot' costs supporting the increased
brand reach and order frequency. Other Administration costs
increased by GBP0.7m, being a combination of the strengthening of
the management team, technology and additional costs of being a
listed business following the Group's IPO.
Finance costs
Finance costs of GBP0.01m were incurred during the Period, much
reduced on the prior period (H1 2021: GBP0.2m) due to the
elimination of interest-bearing preference shares in the
re-structure prior to the IPO in March 2021.
Balance Sheet and Cashflow
Net assets increased to GBP12.1m at 30 September 2021, compared
with net liabilities of GBP0.8m at 30 September 2020. This reflects
the strengthening of the Balance Sheet following the successful IPO
in March 2021.
Inventories increased by GBP1.2m to GBP3.4m, representing 4.8
weeks cover (excluding 'right of return inventory'). Trade and
other receivables increased by GBP3.6m to GBP6.0m. Both balances
reflect the growth in both the direct to consumer and wholesale
channels.
Total liabilities reduced to GBP10.9m (H1 2021: GBP11.7m),
reflecting the reduction in borrowings of GBP3.1m for the
Preference share balance under the pre-IPO capital structure. This
was offset by increased creditor balances as a result of the growth
in the business.
Net cash at the Period end amounted to GBP9.9m. This compares to
a balance of GBP4.3m at 30 September 2020 and GBP11.9m at the year
ended 31 March 2021.
Net cashflow from operating activities since the year ended 31
March 2021 was an outflow of GBP1.5m, the variance being in the
main due to an increase in working capital given the growth in
trade debtors as a result of the expansion of the wholesale
channel.
Investment in technology and infrastructure continued accounting
for GBP0.5m of the total capital spend in the period of
GBP0.7m.
Paul Masters
Chief Financial Officer and Chief Operating Officer
Unaudited group statement of total comprehensive income
For the period ended 30 September 2021
6 months 6 months 6 months
to to to
30 September 30 September 30 September
2021 2020 2019
Note GBP'000 GBP'000 GBP'000
Revenue 29,814 21,475 8,630
Cost of sales (15,781) (10,568) (4,027)
-------------- -------------- --------------
Gross profit 14,033 10,907 4,603
Distribution costs (5,457) (3,672) (1,923)
Administration expenses (7,673) (5,209) (3,570)
Other operating income - - -
-------------- -------------- --------------
Operating profit/(loss) 903 2,026 (890)
EBITDA 1,196 2,476 (624)
Depreciation (219) (180) (134)
Amortisation (74) (271) (132)
Adjusting items - - -
Operating profit/(loss) 903 2,026 (890)
Finance income 1 1 1
Finance costs (14) (200) (9)
-------------- -------------- --------------
Profit/(loss) before
taxation 890 1,827 (898)
Income tax - - -
-------------- -------------- --------------
Profit/(loss) and total
comprehensive Income/(loss)
for the year 890 1,827 (898)
-------------- -------------- --------------
Profit/(loss) per share
- basic and diluted 4 - - -
-------------- -------------- --------------
Unaudited group statement of financial position
As at 30 September 2021
As at As at As at
30 September 30 September 30 September
2021 2020 2019
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 1,562 1,213 1,252
Property, plant and equipment 356 289 333
Right of use assets 1,202 416 375
Deferred tax asset 500 - -
Total non-current assets 3,620 1,918 1,960
-------------- -------------- --------------
Current assets
Inventories 3,414 2,198 1,021
Trade and other receivables 6,034 2,465 453
Cash and cash equivalents 9,894 4,310 1,616
-------------- -------------- --------------
Total current assets 19,342 8,973 3,090
-------------- -------------- --------------
Total assets 22,962 10,891 5,050
-------------- -------------- --------------
Liabilities
Current liabilities
Lease liability (613) (187) (162)
Trade and other payables (9,433) (7,932) (3,331)
Total current liabilities (10,046) (8,119) (3,493)
-------------- -------------- --------------
Non-current liabilities
Borrowings - (3,285) (2,766)
Lease liability (843) (335) (265)
Total non-current liabilities (843) (3,620) (3,031)
-------------- -------------- --------------
Total liabilities (10,889) (11,739) (6,524)
Net assets/(liabilities) 12,073 (848) (1,474)
============== ============== ==============
Equity
Share capital 131 15 15
Share premium 10,942 4,914 4,914
Merger reserve (58) - -
Retained earnings/(accumulated
losses) 1,058 (5,777) (6,403)
Total equity/(deficit) 12,073 (848) (1,474)
============== ============== ==============
Unaudited group statement of changes in equity
For the year ended 31 March 2021
Share Capital Share Premium Merger Retained Total
reserve earnings (deficit)/equity
/ (accumulated
losses)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 31 March
2021 131 10,942 (58) 168 11,183
-------------- -------------- --------- ---------------- ------------------
Profit for the
period - - - 890 890
As at 30 September
2021 131 10,942 (58) 1,058 12,073
-------------- -------------- --------- ---------------- ------------------
Share Capital Share Premium Merger Retained Total
reserve earnings (deficit)/equity
/ (accumulated
losses)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 31 March
2020 15 4,914 - (7,604) (2,677)
-------------- -------------- --------- ---------------- ------------------
Profit for the
period - - - 1,827 1,827
As at 30 September
2020 15 4,914 - (5,777) (848)
-------------- -------------- --------- ---------------- ------------------
Share Capital Share Premium Merger Retained Total
reserve earnings (deficit)/equity
/ (accumulated
losses)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 31 March (5,505
2019 15 4,914 - ) (576)
-------------- -------------- --------- ---------------- ------------------
Loss for the period - - - (898) (898)
As at 30 September
2019 15 4,914 - (6,403) (1,474)
-------------- -------------- --------- ---------------- ------------------
Unaudited group cash flow statement
For the period ended 30 September 2021
6 months 6 months 6 months
to to to
30 September 30 September 30 September
2021 2020 2019
GBP'000 GBP'000 GBP'000
Net cash flow from operating
activities
Profit/(loss) for the year 890 1,827 (898)
Adjustments for:
Amortisation of intangible
assets 74 271 132
Depreciation of property,
plant and equipment 219 180 134
Loss on disposal of property,
plant and equipment - -
Finance income (1) (1) (1)
Finance costs 14 200 9
Income tax expense - - -
Working capital adjustments
(Increase)/decrease in inventories (1,459) (1,346) (58)
Increase in trade and other
receivables (4,342) (1,545) (143)
Increase/(decrease) in trade
and other payables 3,143 3,169 (428)
Taxation paid - - -
-------------- -------------- --------------
Net cash (used in)/from operations (1,462) 2,755 (1,253)
-------------- -------------- --------------
Cash flows generated from/(used
in) investing activities
Purchase of intangible assets (511) (111) (278)
Purchase of property, plant
and equipment (144) (48) (29)
Proceeds from sale of property, -
plant and equipment - -
Interest received 1 1 1
Net cash used in investing
activities (654) (158) (306)
-------------- -------------- --------------
Cash flows from financing
activities
Issue of ordinary shares - - -
Costs incurred on IPO charged -
to Share Premium - -
(Repayment of)/receipt from
invoice discounting facility 171 (250) -
Dividend paid - - -
Interest paid on lease liabilities (14) (10) (9)
Repayment of lease liabilities (86) (74) (65)
-------------- -------------- --------------
Net cash from financing activities 71 (334) (74)
-------------- -------------- --------------
Net (decrease)/increase in
cash and cash equivalents (2,045) 2,263 (1,633)
Cash and cash equivalents
brought forward 11,939 2,047 3,249
Cash and cash equivalents
carried forward 9,894 4,310 1,616
============== ============== ==============
Notes to the Group financial statements
1. General information
The principal activity of In The Style Group plc ("the Company")
is that of a holding company and the principal activity of the
Company and its subsidiaries (the "Group") is that of an online
clothing retailer. The Company was incorporated on 4 March 2021 and
is a public company limited by shares registered in England &
Wales. The registered office of the Company is Unit 5 Olympic
Court, Salford, England, M50 2QP. The Company registration number
is 13245400. The company is listed on the AIM market of the London
Stock Exchange.
A copy of the audited annual statutory accounts for the group
and the Half Yearly report can be found on the company's Website
https://corporate.inthestyle.com/investors .
2. Basis of preparation
The interim financial information for In the Style Group plc and
its subsidiaries (together the "Group") for the six months ended 30
September 2021, which are unaudited, have been prepared in
accordance with the recognition and measurement principles of
International Financial Reporting Standards ('IFRS') and the
accounting policies adopted by the Group as set out in the Annual
Report and Financial Statements for the year ended 31 March 2021.
The Directors do not anticipate any changes in these accounting
policies for the year ended 31 March 2022.
The unaudited interim financial information has been prepared on
a going concern basis under the historical cost convention. The
unaudited interim financial information is presented in pounds
sterling and all values are rounded to the nearest thousand pounds
(GBP'000), except where otherwise indicated. The interim financial
information does not constitute statutory accounts for the purposes
of section 434 of the Companies Act 2006. The statutory accounts
for the year ended 31 March 2021 have been delivered to the
Registrar of Companies and the auditor's report on those accounts
was unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006.
This unaudited interim financial information has been prepared
in accordance with the requirements of the AIM Rules for Companies
and in accordance with the basis of preparation.
3. Segmental analysis
The Chief Operating Decision Maker ("CODM") has been identified
as the Board of Directors. The Board reviews internal reporting in
order to assess performance and allocate resources. The Board has
determined that there are two operating segments, being wholesale
and e-commerce clothing retailing.
In view of the growth in wholesale revenue in the year ended 30
September 2021, the CODM are now monitoring the two operating
segments separately.
Revenue Gross Profit
6 months 6 months 6 months 6 months 6 months 6 months
to to to to to to
30 September 30 September 30 September 30 September 30 September 30 September
2021 2020 2019 2021 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Wholesale 6,852 2,870 726 1,367 536 (26)
E-commerce 22,962 18,605 7,904 12,666 10,371 4,629
-------------- -------------- -------------- -------------- -------------- --------------
29,814 21,475 8,630 14,033 10,907 4,603
============== ============== ============== ============== ============== ==============
There are no sales between the two operating segments, and all
revenue is earned from external customers. The operating segments
gross profit is reconciled to profit before taxation as per the
statement of total comprehensive income.
The Group's overheads are managed centrally by the Board and
consequently there is no reconciliation to profit before tax at a
segmental level.
The Group's assets are managed centrally by the Board and
consequently there is no reconciliation between the Group's assets
per the statement of financial position and the segment assets
Analysis of revenue by geographical destination
6 months 6 months 6 months
to to to
30 September 30 September 30 September
2021 2020 2019
GBP'000 GBP'000 GBP'000
United Kingdom 28,663 20,155 7,548
Rest of Europe 651 729 648
Rest of the World 500 591 434
29,814 21,475 8,630
============== ============== ==============
The above revenues are all generated from contracts with
customers and are recognised at a point in time. All assets of the
Group reside in the UK
4. Profit per share
Basic profit/(loss) per share is calculated by dividing the net
profit/(loss) for the year attributable to ordinary equity holders
after tax by the weighted average number of ordinary shares
outstanding during the year.
Diluted profit/(loss) per share is not calculated as there are
no potential dilutive instruments in issue.
The basic and diluted calculations are both based on the
following:
As at As at As at
30 September 30 September 30 September
2021 2020 2019
GBP'000 GBP'000
Profit/(loss) for the year
after tax 890 1,827 (898)
============== ============== ==============
No. ('000) No. ('000) No. ('000)
Weighted average number of
shares - basic 140,794,593 152,920,021 152,920,021
============== ============== ==============
Earnings/(loss) per share -
- basic and diluted - -
============== ============== ==============
5. Post balance sheet events
On the 12(th) November 2021 the appointment of Sam Perkins as
Group CEO was announced. Adam Frisby the founder and existing CEO
also announced he would be transitioning into a newly formed role
of Chief Brand Officer. These appointments will enable the Group to
deliver the next stages of its long-term growth objectives.
In addition, the group formally re-located their office staff to
new premises in Manchester on the 22(nd) of October 2021.
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END
IR FFWFULEFSELE
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