Special Fashion Group (SFG) has posted a 6.6% increase in EBITDA, as earnings reached $26.7 million for the financial year.
The increase was driven by the return of the Rivers brand to profit, as gross margin improved by 0.4% to 56.0%.
This was underpinned by improved markdown management and cost price improvements. However, costs remain tightly managed.
Growth in online sales reached 15.0% over the past year across all brands and now accounts for 10.4% of total revenues, or $83.7 million.
30 new stores were opened and 79 stores were closed due to store rationalisation during the year.
As of June 30 2017, SFG had net debt of $8.3 million, compared with net debt of $13.3 million for the previous corresponding period.
While the brand utilised bank loan facilities of $24.7 million, the improvement in both EBITDA and working capital allowed the company to repay the additional bank loan facility required to support Rivers over the past few years.
The company stated that operations in the US continued to grow and trade profitably, as wholesale channels and the online success of the City Chic brand led SFG to close all of its US standalone stores.
The overall earnings for the year exclude a one-off adjustment of $1.4 million relating to costs associated with evaluating a change of control proposal and provision for City Chic USA store exit costs of $4.9 million.
SFG CEO Gary Perlstein said the company was happy with the overall performance, particularly with the Rivers brand but acknowledged the difficult trading environment for its mature brands.
“This is an overall solid result with an increase in Underlying EBITDA and stronger balance sheet. Despite it being a difficult trading environment, the improved EBITDA for the year was delivered through our core continuous business improvement strategy.
"This strategy is focussed on profitability growth across all facets of the business, underpinned with a determination to control and reduce costs of doing business wherever possible.
"Our clear focus in the year was the turnaround of Rivers to a profitable brand, and we successfully achieved this. City Chic was also a standout and continues its positive trajectory both locally and internationally.
"Our mature brands including Millers, Katies, Crossroads and Autograph continued their growth in online sales however found trade challenging."
SFG stated that no further discussions had taken place between Al Alfia Holding WLL in regards to the buyout proposal the company received earlier in the year.
"Due to unforeseen circumstances Al Alfia was unable to provide sufficient certainty that it could complete such a change of control transaction and the Group confirms that since that time there have been no active discussions with Al Alfia," the statement read.
The current make up of SFG's board was also modified to return to a single chairperson role.
Anne McDonald will continue in her role and Micheal Hardwick will relinquish his role as co-chairperson but will continue as a non-executive director.