The Very Group secures £125m investment as it reveals Q2 loss

The Very Group, which operates digital retailers Very and Littlewoods, has secured £125 million of new funding from investment firms Carlyle and IMI "to support its growth", despite posting a second quarter loss for the 26 weeks ending 30 December 2023.

As a result of higher interest costs compared to the prior year, loss before tax for the period stood at £2 million in comparison to a profit before tax of £2.1 million in Q2 FY23.

However, total revenue increased 0.6% to £1.22 billion against Q2 FY23 of £1.21 billion "despite the tough conditions in the market".

The group's fashion and sports retail sales declined 5.9% year-on-year, with a decrease of 5% at a Very UK level, which is said to represent "a slowing of the decline seen in previous quarters".

From the new £125 million funding package, £85 million, provided by Carlyle, is immediately available for use by the company.

Taj Sidhu, Head of European and Asian Private Credit at Carlyle, said: "We are delighted to expand our relationship with The Very Group and, alongside IMI, support an important phase of growth for the company. We believe the group has a compelling and resilient business model and is well positioned for further growth in the coming years, and we look forward to working closely with them."

As part of the agreement, Carlyle and IMI will each take a seat on The Very Group Board. As a result, the group "will benefit from the long-term support of two world-class institutions, including their deep network of relationships, industry expertise and capabilities".

Additionally, following two years in the role and having reached the end of his contract term, Dirk Van den Berghe has decided to step down as Non-Executive Chair of The Very Group to focus on his other non-executive roles as well as new opportunities.

A search for a new Non-Executive Chair is "underway and well advanced". As a representative of the Barclay family in The Very Group, Aidan Barclay will assume the role of Non-Executive Chair of the group until an appointment has been made.

Barclay said: "Carlyle and IMI provide the support of two long-term, experienced institutional sponsors that understand our business extremely well. Their commitment underlines the confidence they have in the group, and their contribution to the board of directors will be invaluable as we look to the future."