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30 Sep 2020 | 08:00

Boohoo posts sharp increase in first half sales and profits

(Sharecast News) - Online fashion retailer Boohoo appeared to successfully navigate the media furore over the allegedly sub-standard working conditions at one of its suppliers, posting sharp increases in sales and profits for the half. The firm also guided higher for full-year sales growth.

Revenues over the six months ending on 31 August printed at £816.5m, up 45% on the comparable year earlier figure and in-line with the previous quarter's gain.

That drove a 51% jump in profits before tax to £68.1m.

Boohoo's operating cash-flow meanwhile improved from £55.9m one year ago to £147.2m and its net cash flow from £15.5m to £99.5m.

Looking ahead, Boohoo guided towards growth of 28-32% in full-year profits, up from the 25% previously forecast.

Nonetheless, Michael Hewson, chief market analyst at CMC Markets UK, labelled the company's guidance "cautious", pointing out that the new target range for topline growth "was still quite a step down from the increase seen in the first half of this year, even if it is a modest upgrade."

Net cash at period end stood at £344.9m, marking an increase of £137.6m, but again, as Hewson pointed out "some of that was as a result of the recent share placing to fund future acquisitions."

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