Revenue at online retailer tops £2billion and CTO set to leave

Stephen Chapman's picture
by Stephen Chapman

The Very Group says it has returned to profit as its revenue has topped £2bn for the first time.

The Merseyside-based group has also announced that its Chief Technology Officer will leave the company next year.

Its performance was driven by the brand, which saw its retail sales increase by 10.5%, to £1,230m. Customers also increased by 14.1% to 3.4m.

In its full year results, released this morning, it recorded £48m before tax and an underlying EBITDA of £264m - each figure includes Covid-19 related costs.

“I am delighted to announce a strong set of results and a return to profitability in FY20 thanks to the combination of the commitment of our people and our flexible and resilient business model. Despite the unprecedented challenges of the pandemic, the business has proven its adaptability yet again.  We delivered for record levels of new customers, who used the Very app for items to entertain their families and improve their homes, and increasingly valued our flexible ways to spread the cost,” stated Henry Birch, CEO at The Very Group.

“We prioritised the safety of our colleagues, whilst remaining focused on customer experience. We migrated to, tested and launched Skygate, our new automated fulfilment centre, which enables us to process customer orders within 30 minutes, whilst materially reducing costs and is all set to support our Q2 peak trading period."

Birch added that the economic landscape “will remain unpredictable” but said that they believed their “flexible and resilient business model” will “help us thrive.”

The report shows that website visits to Very increased 28.8% across all channels, with orders placed through the app up 34.4% year on year. App orders now account for 35.7% of total Very orders.

Total group sales via mobile devices represents 82% of its total online sales.

Andy Burton, who joined Very Group as its Chief Technology Officer in February 2019 has announced that he will be leaving in February, to take up a new role “in a different sector.”

Very announced that a search was currently under way to find a successor.

Burton was previously Sky Betting and Gaming’s CTO.