Joules : Annual Results for the 52-week period ended 30 May 2021

Strong performance underpinned by continued digital growth, the strength of the Joules brand, and increasing diversification of revenue streams

FY21 performance:

• Group revenue increased by 4.3% to £199.0 million (FY20: £190.8m) with strong e-commerce sales growth and the contribution from Garden Trading¹, more than offsetting the impact of enforced store closures, the cancellation of country shows across the UK and the impact of the pandemic on the Group's wholesale customers.
  • E-commerce sales increased by 48% to £122.0 million (FY20: £82.7m). Excluding the acquisition of Garden Trading², e-commerce sales increased by 43%. This growth was led by sales through the Group's own websites³. E-commerce represented 77% of the Group's retail revenue during the Period (FY20: 56%).
  • Overall store and shows sales were £36.6 million in the year (FY20: £63.2m). This performance reflects the forced closure of non-essential retail stores, and cancellation of shows and events as a result of COVID-19. In the Period, our stores were closed for approximately six months of the Period compared with two months in the prior year.
  • Wholesale revenue in the Period, including Garden Trading², was £35.3 million, a 17% reduction year-on-year (FY20: £42.7m), reflecting the ongoing impact of COVID-19 on many of the Group's wholesale partners both in the UK and internationally.
  • Other revenue more than doubled to £5.1 million (FY20: £2.2m). This reflects the strong growth of our Friends of Joules digital marketplace and strong performance from several of our licensed product categories and partnerships.
• PBT⁴ before exceptional costs was £6.1 million (FY20: loss of £3.9m).
• Exceptional costs in the Period totalled £4.2 million (FY20: £21.0m) including a £2.9 million (FY20: £20.5 million) non-cash impairment charge, £0.6 million (FY20: nil) Garden Trading acquisition costs and £0.7 million (FY20: £0.5m) restructuring costs.
• Statutory profit before tax was £2.0 million (FY20: loss of £24.8m).
• Statutory profit after tax was £0.9 million (FY20: loss of 20.3m).
• Group gross margin was 49.0%, down 1.7%pts on the prior year, impacted by a lower proportion of higher margin store sales, increased freight costs and increased duty and transportation cost for deliveries into EU markets following Brexit.
• Basic earnings per share was 0.82 pence (FY20: loss of 21.61 pence).
• 7 million active customers⁵ (FY20: 1.41m) and record brand awareness and brand health⁶ metrics achieved during the final quarter of the year.
• Net cash⁷ of £4.1 million (FY20: £4.5m).

Nick Jones, Chief Executive Officer, commented:

'It is safe to say that FY21 was characterised by truly unprecedented trading conditions. Against this backdrop, the Group delivered strong strategic progress, including growing our digital proposition, increasing our active customer base, and further diversifying as a leading lifestyle platform with the successful acquisition of Garden Trading and the continued expansion of Friends of Joules.

At the centre of our growth strategy remains the strong Joules brand. During the year we continued to deliver on our brand's clear mission and purpose - to brighten our customers' lives and conduct business in a responsible way. As more and more consumers increasingly valued their leisure time spent outdoors and time doing the things they enjoy with the people they love, our brand has become increasingly relevant to a greater number of customers, reflected by brand health metrics reaching all-time highs.

The Group's strategic progress would not have been possible without the hard work, flexibility and, above all, dedication of our outstanding team. I am incredibly proud of, and grateful for, the commitment shown by our people, from our head office teams to those on the front line in our stores, during this challenging period.

As we move into the new financial year, the continued success and growth of Friends of Joules and our strengthened position in the home, garden and outdoor sector means that the Group now offers significantly more products and categories than ever before, therefore providing customers with greater choice and more reasons to shop with us. As a result of the strength of the Joules brand and the increasing diversification of the Group's digital-led business model, we believe that the Group is very well positioned to continue to deliver its ambitious growth plans.'

Reconciliation to statutory profit/loss before tax:

^{1 On 9 February 2021 the Group acquired 100% of the issued share capital, and obtained control of, The Garden Trading Company Limited (company number 2854160). The Garden Trading Company Limited is a digitally focused retailer of home and garden products. See Note 2 of the Consolidated Financial Statements.}

^{2 Garden Trading e-commerce revenue in the period since acquisition to 30 May 2021 was £4.3 million, and wholesale revenue was £4.4 million.}

^{3 joules.com, joulesusa.com, tomjoule.de and the Joules ebay store}

^{4 PBT/(LBT) - before exceptional costs is a non-GAAP measure provided to facilitate comparison across periods, it is stated prior to exceptional costs that are primarily related to non-cash asset impairments in the current and previous periods. See Note 3of the Consolidated Financial Statements.}

^{5 Customers registered on our database who have transacted in the last 12 months.}

^{6 Brand Awareness and Brand Health are measured as part of an independent YouGov consumer survey.}

^{7 'Net cash' represents gross cash & cash equivalents less total borrowings. See Note 12of the Consolidated Financial Statements.}

^{8 This year, we are reporting on the 52 weeks ended 30 May 2021 compared to 53 weeks to 31 May 2020 in the prior year. To provide a comparison with last year's 53-week period, the unaudited contribution of the additional week in last year's results was approximately 1% of revenue and profit.}

^{9 For further details of the prior period restatement, refer to the Financial Review section of this report, and Note 1 of the Consolidated Financial Statements.}

Enquiries:

Joules Group plc
Nick Jones, CEO
Jon Dargie, Interim CFO
Tel: +44 (0) 1858 435 255

Hudson Sandler (Financial PR)
Alex Brennan
Lucy Wollam
Tel: +44 (0) 20 7796 4133

Peel Hunt LLP, Nominated Advisor and Joint Broker
George Sellar
Andrew Clark
Tel: +44 (0) 20 7418 8900

Liberum Capital Limited, Joint Broker
John Fishley
Edward Thomas
Tel: +44 (0) 20 3100 2000

Joules - a premium lifestyle brand with an authentic British heritage

Joules is a British lifestyle Group comprising the Joules brand, the fast-growing Friends of Joules digital marketplace, and Garden Trading, a leading digital-led brand in the home, garden and outdoor category.

The Joules brand is a premium lifestyle brand with an authentic heritage and values of family, fun and joy in the countryside. Joules creates exceptional products that brighten the lives of its customers, delivered through leading digital platforms and supported by enticing experiences and stores that are situated in desirable locations relevant to the Joules customer's lifestyle.

The Joules story began in 1989, when Tom Joule started selling clothing on a stand at a country show in Leicestershire. Today, the business designs and sells Joules branded clothing, footwear and accessories for women, men and children as well as collections of homeware, toiletries, lifestyle and pet product ranges that are carefully designed and developed through selected licensing partnerships. Each collection comprises Joules' distinctive use of humour, colour and unique prints, each of which is hand-drawn by the brand's talented in-house print design team at its headquarters in Market Harborough, Leicestershire.

The Joules brand caters to its 1.7 million active customers through its own digital platform, its retail stores in the UK and at country shows and events. Joules extends its brand reach through well-established third-party relationships - concessions, online marketplaces and traditional wholesale - in the UK and internationally.

Joules' distinctive design-led products are complemented by an increasingly broad customer offer provided through its digital marketplace Friends of Joules. The Friend of Joules platform enables third party brands to offer curated, complementary products to the Joules customer base, enhancing Joules' digital platform with thousands of products from hundreds of creative businesses to give customers everything they could ever need for a contemporary country lifestyle.

In 2021, the Group increased its presence across complementary lifestyle categories, including the important and fast-growing home, garden & outdoor category, through the acquisition of leading digital home and garden retailer The Garden Trading Company Limited. Similarly inspired by the British countryside, Garden Trading designs and sells distinctive products through its own e-commerce platform and wholesale partnerships with more than 1,000 stockists across the UK.

www.joules.com
www.joulesgroup.com