Boux Avenue, the lingerie retailer owned by entrepreneur Theo Paphitis, has reported a surge in sales but continues to operate at a loss, according to its latest financial accounts. Sales for the year ending March 2022 increased by a significant 43% to reach £67.1 million, representing a 56.1% growth compared to the pre-pandemic year. The company’s online business also continued to grow during this period.

Although the sales growth is a positive sign, Boux Avenue reported an EBITDA loss of £0.3 million. However, this loss marks an improvement from the previous year, in which the company reported a loss of £3.5 million. Boux Avenue also incurred a net loss of £1.5 million, which is a reduction from the £5.6 million loss reported in the previous year.

Despite the challenges posed by the economic outlook and cost pressures on businesses and consumers, Boux Avenue remains optimistic about its medium-term future. The company has made significant progress in product development, marketing, and cost reduction through collaborations with key stakeholders, which has improved the overall performance of the business. Boux Avenue expects to continue growing and operating profitably.

However, there is a “material uncertainty” surrounding the company’s prospects as a going concern. Boux Avenue has received a letter from Theo Paphitis confirming his support and willingness to provide additional funding if needed. Additionally, the company has obtained letters from related party creditors, stating their commitment to providing existing funding for at least 12 months.

Although the company’s operating plans and financial forecasts suggest that it has sufficient cash to meet its obligations, any significant deviation from expected revenue growth or failure to achieve planned actions in challenging conditions may require additional funding. While funding is likely to be available, it is not guaranteed, leading to the mentioned material uncertainty.

Despite the uncertainty, Theo Paphitis remains confident in Boux Avenue’s success, highlighting the progress made and positive response from customers.

Useful links:
Boux Avenue Official Website