Eve Sleep plc: Cessation of merger talks, trading update and lifting of share suspension (876993)
20 Septiembre 2019 - 1:00AM
UK Regulatory
Eve Sleep plc (EVE)
Eve Sleep plc: Cessation of merger talks, trading update and lifting of
share suspension
20-Sep-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Eve Sleep plc
("eve" or the "Company")
Cessation of merger talks, trading update and lifting of share suspension
eve Sleep, a direct to consumer sleep wellness brand operating in the UK,
Ireland (together the 'UK&I') and France announces that the early stage
merger talks with Simba Sleep Ltd ("Simba"), first announced on 12 August
following media speculation, have ended. The board of eve has decided that
now is not the right time to pursue the potential merger and that it is more
appropriate to focus on the eve rebuild plan, as previously communicated to
investors in the Company's 2018 results announcement on 12 March 2019. The
board will continue to seek further acquisitive growth opportunities, in
addition to its focus on driving organic growth, in order to support its
focus on a path to profitability.
Given the cessation of discussions with Simba, the Company has requested
that the suspension of trading in its shares be lifted and consequently
trading in the Company's shares will resume with effect from 8.00 a.m. on 20
September 2019.
Trading update
eve has focused its efforts in recent months on its new marketing strategy,
with the aim of boosting brand awareness and thus driving revenue growth.
The board is pleased to a report a 50 per cent. improvement in brand
awareness from 10 per cent. at the start of the year. On-going new product
extensions, such as the premium hybrid mattress launch, is going well in the
UK and initiatives such as the implementation of an ERP system has led to an
improved operational effectiveness for the Company. However overall trading
has been more challenging than previously anticipated owing to the uncertain
economic outlook and continuing low levels of consumer confidence. This
economic backdrop combined with heavy discounting and promotional activity
from our competitors has led the board to conclude that 2019 revenues are
now likely to be in the range of GBP25m-GBP27m.
Management's focus on optimising overheads and operational costs has
supported a stronger EBITDA performance, with first half losses 50% lower
year-on-year. It is anticipated that the reduction in revenue expectations
will have some flow throw to the EBITDA loss, though a substantial reduction
year-on-year in H2 and for the full year is still expected.
eve will be publishing its full unaudited interim results on 26 September
2019.
James Sturrock, CEO of eve Sleep commented:
"We have continued to make progress with our rebuild strategy and have taken
action to reduce our cost base, including a significant reduction in
administrative expenses compared to 2018 along with a refocused and reduced
marketing investment strategy removing inefficient activity. As detailed
above, we anticipate a significant reduction in losses in 2019."
"The opportunity to create a leading sleep wellness brand remains
undiminished and I am confident that eve's rebuild strategy, centred around
a differentiated brand positioning, expanded product range, lower friction
customer experience, combined with increasing brand awareness sets out a
clear path to building a profitable business, which delivers for
shareholders. We will continue to examine ways of accelerating eve's rebuild
strategy and the move to profitability, through organic and inorganic
growth."
The information communicated in this announcement contains inside
information for the purposes of Article 7 of the Market Abuse Regulation
(EU) No. 596/2014.
For enquiries, please contact:
eve Sleep plc
James Sturrock, Chief Executive Officer via M7 Communications
LTD
Tim Parfitt, Chief Financial Officer
finnCap Ltd- Nominated Adviser and Tel: +44 (0)20 7220 0500
Broker
Matt Goode / Hannah Boros
M7 Communications LTD -PR/IR Tel: +44(0)7903 089 543
Mark Reed
ISIN: GB00BYWMFT51
Category Code: REN
TIDM: EVE
LEI Code: 2138007BAC29AUXWQE6
Sequence No.: 20715
EQS News ID: 876993
End of Announcement EQS News Service
(END) Dow Jones Newswires
September 20, 2019 02:00 ET (06:00 GMT)
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