Eve Sleep plc: Cessation of merger talks, trading update and lifting of share suspension

Fecha : 20/09/2019 @ 01:00
Fuente : UK Regulatory (RNS & others)
Emisora : Eve Sleep Plc (EVE)
Cotización : 1.4  0.35 (33.33%) @ 10:16
Eve Sleep Cotización de acciones Gráfica

Eve Sleep plc: Cessation of merger talks, trading update and lifting of share suspension

 
 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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