Slide 1: FY 2020 Review and Current Trading Update
1 FY 2020 Review and Current Trading Update
Slide 2: Disclaimer
DISCLAIMER 2 The contents of this presentation and the information which you are given at the time of the presentation have not been approved as a financial promotion by an authorised person within the meaning of the Financial Services and Markets Act 2000 (the “Act”). Reliance on this presentation
Slide 3: Introduction
Introduction 3
Slide 4: FY 2020 In Summary
4 FY 2020 In Summary • A year of strong growth - revenue up 103% • Successful investment in: • People • Supply Chain • Product • Marketing • Accelerated customer acquisition • Highly engaged customers • Robust infrastructure in place to drive continued growth and pave way to profitability with futur
Slide 5: Covid-19 Swift Actions
5 Covid-19 Swift Actions • Agile business model enabled immediate switch from acquisition to cash preservation strategy • Substantial reduction in marketing spend to focus on repeat orders from existing database • Flexible supply base allowed careful management of stock to match demand and reduce ri
Slide 6: Successful Trading Year to Date
6 Successful Trading Year to Date • Q1 revenue up 54% yoy with 71% reduction in operating costs • Keen understanding of rapidly evolving customer needs and products they want • Strength of product has continued to grow customer acquisition at reduced CPA • Highlights the agility of the business mode
Slide 7: Financial Review
Financial Review 7
Slide 8: Income statement commentary
8 • Loss linked to acquisition of customer database which has been critical during Covid-19. • Significant reduction in losses post period which shows the agility of the business to flex strategy in changing marketing conditions. • Post period results helped significantly by investment in FY 2020. •
Slide 9: Balance sheet and cash commentary
9 • Business remains light in capital expenditure. PPE increase a result of IFRS 16 changes bringing lease assets onto the balance sheet with corresponding liabilities. • Stock increase linked to growth. Additional provision included in year end accounts but not high fashion and often seasonless hel
Slide 10: Continued Repeat Order Growth and Customer Acquisition
Continued Repeat Order Growth and Customer Acquisition 10 Net Revenue - New and Repeat £1,400,000 £1,200,000 £1,000,000 £800,000 £600,000 £400,000 £200,000 £0 Dec-16 Jul-17 Jul-18 Jul-19 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Nov-16 Apr-17 May-17 Apr-18 May-18 Aug-17 Nov-17 Jan-18 Aug-18 N
Slide 11: Increased Investment Delivering Growth In New & Repeat Customers
11 Increased Investment Delivering Growth In New & Repeat Customers Repeat Order Growth Acquisition By Month 2018 2019 2020 Total Marketing Spend New Customers • Investment in product, team and marketing delivered significant growth in new customers, especially in H2 FY2020 • This significantly incr
Slide 12: KPIs Progress
KPIs Progress • H2 FY2020 saw significant growth in 12 visits and orders thanks to Web Visits Conversion investment 7,000,000 3.50% • Q1 FY2021 impacted by Covid-19 6,000,000 3.00% but despite much reduced 5,000,000 2.50% expenditure traffic and orders are 4,000,000 2.00% up on prior year • Conversi
Slide 13: Increased Investment For Long Term Efficiencies
13 Increased Investment For Long Term Efficiencies Costs by Type Costs as % of revenue Fulfilment Marketing Fulfilment Marketing Ops PLC Ops H2 FY2017 H1 FY2018 H2 FY2018 H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 Q1 FY2021 Pro H2 FY2017 H1 FY2018 H2 FY2018 H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 Q1 FY
Slide 14: Outlook
Outlook 14
Slide 15: Outlook for Autumn
15 Outlook for Autumn • Investment in customer acquisition planned for September, October, November with anticipated efficiencies from previous learnings and broader product range • Launch of Sosandar on John Lewis and Next website platforms • Diversified product range and peak selling season for de