Trading update for the six months ended 31 August

Adjusted EBITDA up 14%, Reported EBITDA up 731%

H1 FY27 Trading Update

Our turnaround continues at pace. Momentum accelerated through the first half ended 31 August 2026 (“H1”). GMV grew 1.8% year on year, with growth of 0.5% in the first quarter (“Q1”) accelerating to 2.9% in the second quarter (“Q2”). Performance was most notable across the Debenhams brand, where GMV grew 14.1% to represent c.41% of Group GMV. Pretty Little Thing, boohoo and Karen Millen have all returned to growth.

The return to growth has been supported by a record marketplace mix, materially improved profitability and significantly improved cash flows.

Marketplace GMV reached 38.9% of Group GMV, up from 32.7% in the prior year. The Group’s brand partner ecosystem expanded to c.30k brands or partners. All brands have completed the transition to the marketplace model, and the Group’s ambition is for marketplace to represent well over 50% of GMV.

Gross margin expanded to 53.9% (H1 FY26: 51.9%), and the Group’s returns rate declined by c.4% in the period.

Adjusted EBITDA increased by 13.9% to £24m (H1 FY26: £21m), with Adjusted EBITDA margin of 5.9% (H1 FY26: 5.0%).

Exceptional costs reduced by 83.5% to £4m (H1 FY26: £24m). Reported EBITDA of £20m (H1 FY26: -£3m) is a £23m improvement on the prior year.

Capital expenditure fell by 33% to £5m year on year (H1 FY26: £8m). Net debt reduced to £102m (H1 FY26: £111m), £9m lower year on year, and cash flows improved significantly, with the cash outflow after capital expenditure and interest materially reduced year on year.

Post Period End

As announced on 10 September 2026, the Group completed the £90m disposal of the Sheffield automation and lease assignment, a significant step in the transition to an asset-light model. Fulfilment of the Group’s stocked product will transfer to a global 3PL provider. The total cost to fulfil going forward will be no more expensive than the cost incurred in Sheffield.

The Group has completed the disposal of the Nasty Gal brand and its associated intellectual property for $16m, as announced on 15 September 2026, further simplifying the Group’s brand portfolio and supporting the focus on Debenhams and the Group’s marketplace model.

Together, these transactions materially reduce the Group’s debt and net debt is expected to be negligible at year end.

Outlook

In respect of the full year, the Board expects to deliver GMV growth, and Adjusted EBITDA as previously guided and in line with consensus of no less than £59m representing double-digit growth year-on-year. Furthermore, the Board expects continued material improvement in Reported EBITDA, a return to positive profit before tax, free cash flow generation and negligible net debt.

The £100m fixed cost target remains on track, taking the cumulative reduction delivered by the management team to c.£200m.

Looking ahead, material cost reductions are expected in FY28: depreciation reduced to £14m (FY27: £22m), interest reduced by at least c.£10m based on the current facility, with potential for a further reduction under a new financial facility, and lease costs reduced to £4m (FY27: £14m).

Dan Finley, Group Chief Executive Officer, commented:

“Our turnaround continues at pace. This is a strong first half and, importantly, one where growth accelerated as we went through it. Group GMV is up 1.8% for the half, but the shape matters more than the headline: growth of 0.5% in the first quarter became 2.9% in the second, marketplace mix has reached a record 38.9%, up from 32.7%. Gross margin is 53.9% against 51.9% last year and our returns rate is c.4% lower.

“With the cost programme ahead of plan, lease costs falling, and net debt down year on year, we are reiterating our guidance of double-digit Adjusted EBITDA growth and free cash flow in FY27. Since the half year end, the Sheffield distribution centre and Nasty Gal disposals mark a further significant step in reducing leverage, and we now expect net debt to be negligible at our February 2027 year end.”