Yes. A negative net profit margin means the business made a loss for the period — total costs exceeded total revenue, so the margin calculation produces a figure below zero. It shows the size of the loss relative to turnover, which makes it easier to compare across periods than the loss in pounds alone.
Expressing it as a percentage is useful because it puts the loss in proportion. A small loss on a large turnover suggests the business is close to breaking even and may need only modest changes in pricing or cost. A large negative margin suggests something more structural, such as selling below cost or an overhead base the business cannot support.
Look behind the percentage before drawing conclusions. Losses caused by one-off costs, heavy depreciation on recently purchased assets, or deliberate investment in growth have different implications from losses caused by weak trading. Comparing the net margin with operating cash flow usually clarifies which you are dealing with.
If you are seeking finance while showing a negative margin, the explanation matters as much as the number. Lenders on our panel take a range of approaches to businesses in an investment phase or recovering from a difficult year, though every application is assessed individually and no outcome can be guaranteed. This is general information about how figures are read, not accounting advice.