Extension to Banking Facilities
Joules, the premium British lifestyle group, provides a trading update following the completion of the Group’s FY22 financial year on 29 May 2022, and an update on its banking facilities.
Trading during the final weeks was consistent with the trends outlined in the Group’s previous trading update released on 4 May 2022. Nevertheless, due to additional cost reductions, the Group anticipates FY22 adjusted profit before tax and adjusting items to be slightly ahead of current market expectations1.
The trading trends outlined in the Group’s previous update have also continued for the first six weeks of FY23 with retail sales growth of 8.5% year on year. Gross margins have also remained under significant pressure with consumer appetite weighted towards mark downs amidst a heavily promotional environment.
The Group is making good progress on its plans to improve profitability by simplifying the business and optimising the cost base. This includes implementing the Group’s previously disclosed plans to reduce its global wholesale accounts to focus on long-term profitable partnerships, shorten product lead times, and diversify the Group’s ethically sourced supplier base.
Joules intends to release its Full Year results for FY22 in September 2022.
Extension to Banking Facilities
As at 26 June2, the Group had net debt of £17.7m, giving £15.0m headroom within its current banking facilities, in line with the Board’s expectations. The Group is pleased to announce it has received credit approval for a further £5m headroom on its borrowing facilities with Barclays Bank Plc (Barclays) until November 2022 to support working capital requirements over the Group’s forthcoming seasonal borrowing peak, which has been agreed by the Board in principle and will be available to the Group subject to entry into the requisite documentation (which is expected to occur in the coming days). As part of the additional headroom being made available, it is anticipated that the Group will grant additional security to Barclays. The Group will also be restricted from paying dividends for the period that the facility is in place. The Group is continuing positive discussions with Barclays on the Group’s medium-term financing which the Board expects to conclude by September 2022. Whilst the Group will continue to manage cash resources carefully, the Board expects that the Group has sufficient liquidity to manage its working capital requirements over this time including, in the event that it was utilised, repayment of the extended facilities in November 2022.
1 Company compiled analyst consensus for FY22 Loss Before Tax as at 18 July 2022 of £(1.5)m
226 June is the end date of the Group’s most recent monthly reporting period (P1 FY23)
Joules Group plc
Nick Jones, CEO
Caroline York, CFO
Tel: +44 (0) 1858 435 255
Hudson Sandler (Financial PR)
Tel: +44 (0) 20 7796 4133
Peel Hunt LLP, Nominated Advisor and Joint Broker
Tel: +44 (0) 20 7418 8900
Liberum Capital Limited, Joint Broker
Tel: +44 (0) 20 3100 2000
This announcement contains inside information within the meaning of the Market Abuse Regulation. The person responsible for arranging release of this announcement on behalf of Joules is Caroline York, Chief Financial Officer.
Joules - a premium lifestyle group with an authentic British heritage
Joules is a premium lifestyle brand and group with an authentic heritage and values of family, fun and joy in the countryside.
Joules creates and curates exceptional products that brighten the lives of its customers, delivered through leading digital platforms and supported by enticing experiences and stores that are located in desirable locations relevant to the Joules customer's lifestyle.
The Joules story began in 1989, when Tom Joule started selling clothing on a stand at a country show in Leicestershire. Today, the business designs and sells Joules branded clothing, footwear and accessories for women, men and children as well as collections of homeware, toiletries, lifestyle and pet product ranges that are carefully designed and developed through selected licensing partnerships. Each collection comprises Joules' distinctive use of humour, colour and unique prints, each of which is hand-drawn by the brand's talented in-house print design team at its headquarters in Market Harborough, Leicestershire.
In 2021, Joules acquired leading digital home and garden retailer The Garden Trading Company, strengthening its position in the important and fast-growing home, garden & outdoor category. Similarly inspired by the British countryside, Garden Trading designs and sells distinctive products through its own e-commerce platform and wholesale partnerships with more than 1,000 stockists across the UK.
Joules' distinctive design-led products are complemented by an increasingly broad customer offer provided through its digital marketplace Friends of Joules that enables third party brands to offer curated, complementary products to the Joules customer base, enhancing Joules' digital platform with thousands of products from hundreds of creative businesses to give customers everything they could ever need for a contemporary country lifestyle.
The Joules group caters to its 1.9 million active customers through its own digital platforms, its retail stores in the UK and at country shows and events. Joules extends its brand reach through well-established third-party relationships - concessions, online marketplaces and traditional wholesale - in the UK and internationally.
Internationally, the brand has made good progress in its target markets of the US and Germany, where the distinctive Joules brand and products range resonate well with local customers. International markets are served by wholesale partnerships and dedicated Joules websites.