LONDON - boohoo Group plc (AIM: BOO), a prominent online fashion retailer, announced a new £222 million debt refinancing deal, signaling a strategic move to bolster its financial position for future growth. The agreement includes a £125 million revolving credit facility expiring in October 2026 and a £97 million term loan due in August 2025, aiming to reduce the company's overall interest payments.
In a move to enhance shareholder value, the Board has initiated a review of its corporate structure and the potential of its various divisions. This comes as the company reported a Gross Merchandise Value (GMV) pre-returns of £1.177 billion for the first half of the fiscal year 2025, a decrease of 7% from the previous year, with revenues also down by 15% to £620 million. Adjusted EBITDA fell by £10 million, now representing 3.4% of revenue.
The Group's performance has been mixed, with a decline in its young fashion brands due to challenging external conditions, but with Debenhams marketplace experiencing growth, adding 5,000 brands in the period. Looking ahead, boohoo anticipates a stronger second half with higher GMV and adjusted EBITDA, despite continued investments.
CEO John Lyttle has announced his decision to step down after a five-year tenure, during which he has overseen significant growth and diversification of the company's brand portfolio. Lyttle will aid in the transition to a new CEO, ensuring continuity in leadership.
Mahmud Kamani, Group Executive Chairman, expressed gratitude to Lyttle for his service and underscored the Board's commitment to driving value for stakeholders. Kamani also noted the confidence shown by the company's banks through the new financing facility.
The company is set to release its detailed results for the six months ended 31 August 2024 in early November 2024. This business update is based on a press release statement from boohoo Group plc.
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