Made.com losses widen as it looks for a buyer

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Made.com has reported deepening losses following the decision to put itself up for sale.

Interior of Made showroom showing furniture and branding

Made is in the midst of a turnaround strategy and is seeking a buyer

The embattled retailer recorded losses before tax of £35.3m in the six months to June 30, compared with losses of £10.1m in the same period last year.

Revenues grew slightly, up 4.2% to £178.2m in the six-month period, which the retailer said was due to deferred revenues normalising.

Made has sought to clear excess stock through discounting, reducing its gross margin by 810bps. The homewares business said it has now reduced stocks from £63m on December 31, 2021, to £44m at the end of this half.

This stock level is now more “closely aligned with demand” but it said there will be further discounting in the next quarter.

Made is in the midst of its turnaround strategy, which includes resizing its showroom portfolio and reducing its headcount.

The business announced earlier this month that it was seeking a buyer when it commenced a strategic review and formal sale process.

Chief executive Nicola Thompson said: “The first half of the year was a challenging time for the global economy and particularly for the retail sector. The group has faced a significant reduction in demand, which has been difficult for the business and its stakeholders.

“Although we took immediate action to adjust inventory levels and control costs, and have launched a transformation plan that will make the business more agile and resilient, we believe that the decision we have taken to launch the strategic review and formal sale process is the best route to protect shareholder value.

“Made is not alone in being hit by supply chain problems and the cost-of-living squeeze, but we are confident that Made has a strong brand, an excellent product range and a large and loyal customer base across the UK and Europe.”