Etailer Made has replaced its finance boss after warning that profitability has been delayed for at least a year and sales may see a double-digit drop – rather than the recently forecast 25%-35% growth.
The company has recruited Patrick Lewis, former John Lewis cfo from 27 June. He will succeed Adrian Evans, who will remain with the company until 16 September ‘to ensure a smooth transition of responsibilities, before pursuing other opportunities.’
‘I am pleased to have been part of the management team at Made during such an interesting and exciting time,’ says Evans, who joined in 2017.
‘Adrian’s calm professionalism and dedication were enormously important to the growth of the company, and he has played a key role in shaping strategy, driving growth and helping the company transition to a public company,’ says Susanne Given, Made chair.
News of his departure came after the company warned shareholders – who have seen the value of shares plummet by about three-quarters since last year’s £775m floatation – that its best estimate for sales for 2022 was they would be flat and at worst drop by 15%. In March it was predicting turnover growth of 25%-35%.
It also warned that it would lose at least £15m and up to £35m on an EBITDA basis this year.
‘Spot freight rates continue to normalise in line with previous expectations, but lower sales mean the benefit will be reflected in gross margin later in 2022 than previously anticipated. We still expect 2022 exit rate gross margin to be around pre-pandemic levels and business shape will be set for the new operating environment. These actions will position the business to deliver positive adjusted EBITDA and free cash flow in 2023,’ it says.
It insisted that it would outperform the online furniture and home market by about 20% but would not meet its 2025 sales target of £1.2bn.
It says un-cited ‘third-party data’ suggested ‘that the online furniture and home market is down around 30%-40% so far this year. Compared to the market, Made gross sales were down only 10% in Q1 versus Q1 2021 (and up 64% versus 2019).’
‘There is no escaping the tough trading environment at the moment. However, we are laser-focused on executing our strategy and we are delivering strong progress across each of our strategic pillars. Our customers are at the heart of our business and we’re seeing a really positive reaction to our improved proposition, with average lead times consistently at the targeted three to four weeks average for the last two months. Made continues to outperform the online furniture and home market and I am confident the company will emerge in a very strong position,’ insisted Nicola Thompson, Made ceo.
