Seraphine delivers ‘significant’ revenue growth
The Seraphine maternity brand has posted 33% growth in annual product revenue to £44 million on a constant currency basis.
In the year to 3 April, the company’s own digital platform product revenue increased by 25.2% to £37 million while digital partner product sales climbed by 87.8% to £4.4 million.
However, adjusted EBITDA came in at below previously guided expectations with a fall of 58.6% to £2.6 million due to factors such as lower than expected product revenue growth, increased supply chain and marketing costs and unexpected expenditure for entering new markets.
The company said it had been nimble in responding to external challenges in the period such as Covid, supply chain disruption and a weakening of consumer confidence.
David Williams, chief executive of Seraphine, said “Despite these challenges, we have delivered significant product revenue growth in the period, showing the strength of our strategy, brand and our customer proposition. Additionally, all non-financial KPIs have grown – customers are visiting our websites more and when they are, they are buying more; which illustrates the strength of Seraphine’s unique products.”
During the period, Seraphine continued its international expansion with the launch of its own digital platform into Canada, Switzerland and the Netherlands. It also appointed Lee Williams, formerly of French Connection and ASOS, as chief financial officer.
Giving an update on current trading, Seraphine said it is continuing to experience significant inflation in marketing costs and is having to spend 33% more to maintain prior year product revenue levels.
It is therefore updating its guidance to 0% to 15% product revenue growth for its current financial year.
Williams added: “Seraphine is a market leading maternity wear business with a strong and well-loved brand, delivering a customer proposition, globally, that improves the journey of motherhood. There is no doubt that our first year as a listed company has been challenging – but I am confident that, coupled with our strong business fundamentals, we now have the team, the structure and the functions in place to focus on delivering profitable growth.”