• Loss after income tax of $0.7 million, down 92% from previous period
• Exited UK business and renegotiated licence terms with Toys R Us Kids
• Received $1.5 million in funding from Mercer Street Global Fund II LP

Toys'R'US ANZ Limited, an Australian-based e-commerce retailer, has reported its financial results for the half-year ended 31 January 2025. The company achieved sales revenues of $3.1 million from continuing operations, compared to $5.9 million in the previous comparative period. While total revenues decreased, the company improved product margins across all brands and increased its inventory value. The loss after income tax for the half-year was $0.7 million, a significant improvement from the $9.6 million loss in the previous period. The company reached an agreement with its licensor, Toys R Us Kids (TRUK), to exit the UK business and transfer all UK business assets to TRUK in settlement of its outstanding loan balance. TRUK also agreed to release the group from all remaining liabilities and obligations. Following the UK business exit, the company also reached an agreement on revised licence terms, reducing the fees by 66% to USD$0.4 million for the next three years. Additionally, the company sub-leased excess space within its premises and transferred the head-leases on two premises, resulting in the release of ~$2.7 million bond monies which were used to pay suppliers and build inventory. The company also received $1.5 million in funding from Mercer Street Global Fund II LP to support its strategic transformation. The company remains focused on improving operational efficiencies and leveraging the benefits of scale as it moves into the next financial year.

The company will continue to focus on improved operational efficiencies which combined with improved performance will position it to leverage the benefits of scale as we move into the next financial year.