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8 October 2021 £ m N BROWN GROUP PLC HALF YEAR RESULTS FOR THE 26 WEEKS ENDED 28 AUGUST 2021 Strong growth in strategic brands 26 weeks to 28 August 2021 ( H1 22 ) Group revenue Product revenue Financial services revenue Adjusted EBITDA² Statutory operating profit Adjusted profit before tax³ Statutory profit before tax Unsecured net cash / ( debt ) 4 Adjusted net debt5 26 weeks to 29 August 2020 % Change ( Restated¹ ) ( H121 ) 346.8 347.2 ( 0.1 % ) 222.1 215.0 3.3 % 124.7 132.2 ( 5.7 % ) 53.0 48.0 10.4 % 31.0 26.5 17.0 % 24.2 22.6 7.1 % 28.2 14.1 100.0 % 41.9 ( 32.2 ) n / a ( 268.3 ) ( 411.1 ) 34.7 % 1H1 21 restated for the value added tax element on customer debt written off , previously reported within Revenue rather than being offset against Cost of Sales ( refer to Prior Year Adjustment , note 32 , in the 2021 Annual Report and Accounts ) . 2Adjusted EBITDA is defined as operating profit , excluding exceptional items , with depreciation and amortisation added back . The Directors believe that adjusted EBITDA represents the most appropriate measure of the Group's underlying trading performance . 3 Defined as excluding exceptional items and fair value movement on financial instruments . The Directors believe that adjusted profit before tax represents the most appropriate measure of the Group's underlying profit before tax as it removes items that do not form part of the recurring operational activities of the Group . 4 Cash balances , net of cash utilised to reduce amounts drawn down on securitised debt , less amount drawn on the Group's unsecured debt facilities . Excludes debt securitised against receivables ( customer loan book ) of £ 310.2m and lease liabilities of £ 3.9m . The Directors believe that this is the most appropriate measure of the Group's unsecured net cash / borrowings and is used to calculate the Group's leverage ratio , a key debt covenant measure . 5 Total liabilities from financing activities less cash , excluding lease liabilities . The Directors believe this is the most appropriate measure of the Group's overall net debt in relation to both its secured and unsecured borrowings . H1 Results Highlights • Strategic transformation delivering sustained momentum in product revenue ○ ○ Five strategic brands grew product revenue 14.9 % as benefits of transformation accelerate Overall product revenue grew 3.3 % , reflecting ongoing managed decline of legacy brands Increase in active customers of 1.1 % Q2 on Q1 , demonstrating impact of improving product offer and marketing outreach • Accelerating strategic investments in brand and product following our recent fundraise ○ Step - up in marketing activity to support new campaigns , with several high - profile partnerships ; Amanda Holden and Davina McCall signed as brand ambassadors for JD Williams ; Frankie Bridge and Nicki Bamford - Bowes for Home Essentials ○ Ongoing improvements in digital experience , including an improved customer checkout ○ New in - house studio significantly enhances ability to create customised content 1