Seraphine sees annual revenue rise despite growing costs

Maternity and nursing brand Seraphine has released its financial results for the year ending 3 April 2022, reporting revenue growth despite an "extremely challenging year for the retail sector".

For the full year, Seraphine Group plc shared the following results:

• Product revenue up 33% on constant currency basis to £44 million.
• Own digital platform revenue up 25.2% on constant currency basis to £37 million.
• Digital partners product revenue up 87.8% on constant currency basis to £4.4 million.
• Net debt of £0.2 million, with liquidity headroom of £5.8 million.

Adjusted EBITDA decreased 58.6% to £2.6 million, compared to £6.2 million in FY21. This was caused by lower than expected product revenue growth, increased supply chain costs, increased marketing costs and unexpected costs of entering new markets.

The group's traffic grew 12.7% to 15.6 million and conversion rate increased by 0.2% to 3.0%, compared to 2.8% in FY21.

Looking ahead, the group has updated its guidance to 0-15% product revenue growth and expects to remain profitable with improved margin. Its board remains "confident" on the its ability to maintain sufficient liquidity throughout the year.

David Williams, CEO of Seraphine Group plc, said: "It has been a challenging year, both externally for the consumer sector as a whole and internally for the group.

"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.

"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."