The Very Group attributes the profits rise to ongoing structural growth and its resilient and adaptable business model.

The Very Group has reported that full-year profits have risen, and said the company had carefully and successfully managed costs during the financial period.

The retail group, which includes online segments Very and Littlewoods, reported that pre-tax profit increased 2.2% to £63.9m for the year ending 2nd July. Very revenue grew 12.6% and group revenue was up 4.8%, compared with pre-pandemic trading. However, compared to its best-ever year in 2021, Very group sales were down 7.3%.

The company said Very retail sales declined 7.7% compared with the same period last year, but grew 15.3% on a two-year basis. Customers were said to have returned to more normal shopping habits, with double digit growth compared to pre-pandemic across all sub-categories.

The Very Group CFO, Ben Fletcher, commented: “I am pleased to report another robust performance, driven by ongoing structural growth in the Very brand, our integrated business model – which continues to prove resilient as we adapt to changing customer behaviour – and, of course, our amazing people. We also successfully managed costs, achieving a reduction relative to revenue despite inflationary pressures.”

The retailer’s gross margin was broadly maintained at 36.2%, compared to 36.5% last year, due to both the 10.7% growth of its credit business Very Finance and careful cost management.

In January, Very Group reported very strong Christmas trading for 2021. The company told Toy World that, from a toy perspective, the company had maintained share in a difficult market.

Ben Fletcher added: “While the rising cost of living and other economic conditions present challenges for all retailers, we are confident in our resilient and adaptable business model which combines multicategory online retail with flexible ways to pay.”

In July, The Very Group appointed former Walmart executive Lionel Desclée as its new chief executive, following Henry Birch’s resignation after four-and-a-half years.