Eve Sleep plc (EVE)
Eve Sleep plc: Interim Results
26-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" the "Company" or the "Group")
Interim Results
Halving of EBITDA losses, rebuild strategy progressing, new retail partnerships now live
eve Sleep, a direct-to-consumer sleep wellness brand operating in the UK, Ireland
(together the "UK&I") and France, today issues its results for the six months ended 30
June 2019 (the "Period").
Financial Highlights8
2019 H1 GBPm 2018 H1 GBPm Movement
Revenue (UK&I and France) 1 12.9 14.1 -8%
Gross profit 2 6.7 7.8 -13%
Gross profit margin 2 52.3% 54.8% -250 bps
Marketing costs as a % of revenue 51.0% 70.6% -1960
2,3 bps
Marketing contribution 2,3,4 (1.6) (3.9) +GBP2.3m
Underlying EBITDA Loss 5 (5.9) (11.9) +GBP6.0m
Statutory loss before tax 6 (6.7) (12.0) +GBP5.3m
Net Cash 7 12.5 16.7 -GBP4.2m
Business Highlights
· Sales of non-mattress products now contributing 24% of revenues (H1 2018: 21%)
· Customer repeat rate increased to 19% (H1 2018: 16%)
· Marketing efficiency improved in all markets and whilst revenue was lower the
marketing contribution has improved by GBP2.3m
· Conversion rate up 20 bps reflecting upgrades to the customer journey
· Raised GBP11.7m net of expenses in new equity and GBP0.9m in advertising credits from
Channel Four
Post Period End
· Retail partnership with Next Home expanded in August 2019 by 104 stores to cover 158
sites
· Three new retail partnerships announced in July 2019: Argos now live alongside Dunelm
with Homebase due to launch imminently
· Unprompted brand awareness in the UK&I grew from 10% in January 2019 to 15% in August
2019 (ahead of all D2C competitors), with awareness also up in France on the back of a
new marketing campaign launched in June 2019
· Signed deal with British Rowing to be their official sleep partner
Current trading
As set out in the Company's trading update of 20 September 2019 eve has revised revenue
guidance for the current financial year to between GBP25m and GBP27m as a result of the
worsening macro-economic conditions and near permanent heavy discounting by competitors.
The revision in revenue expectations is expected to have some flow through to the EBITDA
loss, though a substantial year-on-year reduction in H2 losses and the full year loss is
still expected.
James Sturrock, CEO of eve Sleep, commented:
"We are making good progress with our strategic focus to build a sleep wellness brand, as
a key differentiator to peers and to secure the foundations for a profitable and
sustainable future for eve. There has been a step-up in the depth and breath of product
ranges, a 50% increase in brand awareness and improvements to our technology and systems
to ensure the best experience for customers, all of which have driven a meaningful
improvement in the customer repeat rate. In tandem, costs and cash are better managed,
which is evident in the H1 reduction in losses and the cash outflow.
While the headwinds have increased, we have a flexible and adaptable business model,
alongside a strategy that will clearly differentiate eve in the longer term from peers.
We will continue to focus on the rebuild strategy through a combination of organic
improvements and inorganic opportunities as and when they arise."
Footnotes
1 In July 2018, the Board reviewed the number of territories that eve traded from,
deciding to focus on the Core Markets of the UK&I and France, and withdrawing from the
other territories. The headline revenues for 2019 and 2018 cover the UK&I and France. In
the first half of 2018 the total reported revenue for all markets was GBP18.8m.
2 Gross profit, gross profit margin, marketing costs and marketing contribution are all
shown for the Core Markets of the UK, Ireland and France for the current and prior
period.
3 Indirect marketing costs, such as the cost of production for TV campaigns, were
previously included in overheads but are now included within marketing costs. 2018
marketing costs have been restated to include these indirect costs.
4 Marketing contribution is defined as the profit after marketing expenditure but before
payroll and overhead costs
5 Underlying EBITDA is defined as earnings before interest, tax, depreciation,
amortisation, share-based payment charges (2018 and 2019) and fundraise-related
expenditure (2019 only).
6 Included within the Statutory loss before tax is EBITDA, fund raising expenses,
interest income, depreciation and amortisation.
7 In addition to the cash balance of GBP12.5m as at 30 June 2019 eve has GBP0.9m of
advertising credits outstanding with Channel 4, following GBP0.9m of credits raised at the
fund raising in February 2019
8 Financial data has been rounded for presentation purposes. As a result of this rounding
the totals, comparatives and calculations presented in this document may vary slightly
from the arithmetic totals, calculations using such data.
For further information, please contact:
eve Sleep plc via M7 Communications LTD
James Sturrock, Chief
Executive Officer
Tim Parfitt, Chief Financial
Officer
finnCap Limited (NOMAD and +44(0)20 7220 0500
broker)
Matt Goode (Corporate
Finance)
Hannah Boros (Corporate
Finance)
Alice Lane (ECM)
M7 Communications LTD +44(0) 7903 089 543
Mark Reed
Summary
The focus for the first half of 2019 has been to reset the business, putting eve onto a
more stable and secure long-term footing, with the intention of targeting sustainable and
profitable sales growth in the second half of the year. Considerable progress has been
made in this regard, most notably the successful fund raising in February 2019, which
secured fresh equity of GBP11.7m net of expenses and an additional GBP0.9m of advertising
credits with Channel Four, both of which are being used to fund the rebuild strategy.
Across the business good progress has been made with the rebuild strategy. At the Group
level, this is most evident in the 50% year-on-year reduction in the underlying EBITDA
loss. Unprofitable business has been cut and the level of promotional activity is now
better optimised to drive contribution margin. Media investment was pared back during the
Period compared to the prior year, while the marketing and brand strategy was being
rebuilt, resulting in a 34% reduction in spend and a 1960 bps improvement in marketing
efficiency, defined as marketing costs as a percentage of revenues. In tandem cost
control has been tightly managed leading to a 22% year-on-year reduction in overheads.
The above improvements have been achieved against a highly challenging retail backdrop
and an increasingly competitive mattress market, with deep discounts on a near permanent
basis witnessed since January 2019.
In the UK&I trading in the period was broadly flat, with revenues of GBP10.2m, down 0.9%
year-on-year. Sales of non-mattress products increased, contributing 23% of revenues in
the Period (2018 H1: 20%), helped by a substantial increase in new products and strong
demand for bedframes. The broader product range has also driven an improvement in the
customer repeat rate to 19.4% (2018 H1: 16.4%). Marketing investment in the UK&I was 27%
lower year-on-year.
The French business has required greater management focus to localise and reposition the
brand. The 29% reduction in French revenues in the Period was predominantly driven by
management's decision to focus on net contribution margin over sales growth, accompanied
by a substantial reduction in marketing spend. Despite the large revenue reduction, the
French contribution margin improved by GBP0.9m, to a loss of GBP1.2m. A new marketing
campaign launched in France during the second half of June 2019.
Developments since the period end
Since the period end progress has continued, with major new marketing campaigns having
been launched in the UK&I. The campaigns are distinct from peers and have been well
received, driving a substantial uplift in brand awareness. In the UK unprompted brand
awareness has risen from 10% at the start of the year to 15% in August 2019.
The Company has also signed three new retail partnerships with Argos, Homebase and
Dunelm, and an extension to the Next Home partnership, with the addition of a further 104
Next stores. The Argos and Dunelm partnerships have already gone live, with Homebase
expected to launch imminently.
eve has also signed a partnership agreement with British Rowing, and the sleep wellness
brand will now be "Official Sleep Partner" to the national governing body for rowing. eve
will support British Rowing in managing the sleep environment of the GB Rowing Team
athletes, helping them perform at their best each day. The deal also includes exclusive
offers for British Rowing club members.
eve has undergone considerable change in the last 12 months. It is pleasing and testament
to the professionalism and commitment of the team that the quality of the customer
offering and service levels have remained high, as evidenced by the returns rate, which
has held steady at c12% and a market leading 4.7 out of 5.0 rating on Trustpilot.
Market overview and the macro backdrop
The European sleep market is estimated to be worth GBP26bn, with the core markets that eve
is now focused on (UK&I and France) being worth GBP6bn. While there are many traditional
operators, in what is a highly fragmented sleep market across Europe, there are fewer,
well-branded digital operators of any meaningful size, competing in the wider sleep
category. As the market continues to shift online, with Euromonitor predicting that the
online furniture market will be the second fastest growing retail category, with online
purchase penetration expected to increase by 55% between 2018 and 2023, eve is well
placed to benefit.
There is also an increasing awareness of the importance of sleep for everyday health and
wellbeing and the dangers of having insufficient sleep. There is currently no brand in
Europe that has established itself as a sleep wellness brand. eve's ambition is to
achieve just this; to be seen as the go-to brand for sleep wellness products.
While eve is insulated from the structural challenges currently facing 'bricks and
mortar' retailers, the Company is not immune from the cyclical threats of a slowing
economy and declining consumer confidence. The current level of uncertainty caused in
part by Brexit is unprecedented and is having a meaningful impact on the housing market
and 'big ticket' consumer purchases including furniture and bedding. These cyclical
challenges are being compounded by the particular dynamics of the mattress market.
eve's strategy is to differentiate itself from peers, based on building a brand around
the wider sleep wellness category. This can be seen in its advertising and eve's focus on
building out a broader product range than its competitors.
Progressing the rebuild strategy
The progress made on each of the three pillars of the rebuild strategy is set out below:
1) Differentiated brand positioning
Key to creating shareholder value is to provide a differentiated position from peers. To
achieve this the Company aims to become a trusted destination for a wider range of sleep
wellness related products, supported by a new marketing strategy, refocused on the
benefits that eve can provide consumers in sleep wellness.
During the period the company ran existing marketing campaigns whilst testing new
promotional strategies and channel mix, as well as carrying out econometric analysis and
modelling. This supported development of the new brand, communications and the creative
strategy, which launched at the start of H2 2019.
The new UK&I campaign, 'wake up dancing' delivers the eve brand positioning more clearly
and resonantly with consumers thanks to a distinctive and ownable brand asset (the
dancing sloth) as well as a distinctive creative. In France, the investment and media
strategy has been adapted to make better use of the peak sales periods, driving more
efficient spend with an optimised creative strategy and revitalised positioning. This
positioning, 'reborn again each morning' (renaissez chaque matin) is designed to elevate
eve to be the premium brand in the nascent direct-to-consumer mattress category in
France.
Marketing spend was 34% lower than the comparable period and whilst revenue was slightly
softer, marketing efficiency improved significantly by 1960bps.
2. Expanded product range
The Company continues to build out a range of sleep wellness products to complement the
increased range of next generation mattresses which currently include the original, the
premium, the hybrid (springs and memory foam), the premium hybrid as well as the entry
level light, in order to cover more price points and consumer preferences.
The rate of new product development stepped up in the period, with the launch of new
bedframes and expanded ranges of bedding, pillows and the baby category. Sales of
bedframes, including the new storage bedframe, have performed particularly well.
The benefits to the business of the increased ranges are evident in the Company's KPIs.
In the UK&I sales of non-mattress products in the period increased to 24% of total
revenues (H1 2018: 21%). The broader range also drove a 300 bps improvement in the
customer repeat rate, a good demonstration of increasing brand stickiness.
3) Lower friction customer experience
Enhancing customer experience throughout the online journey and in the service
proposition to drive stronger site conversion and customer satisfaction metrics is
central to the rebuild strategy. Improved conversion will not only result in higher
revenues but also greater marketing efficiency, which is key to achieving profitability.
The entire customer journey prior to purchase has been substantially upgraded, including
a 50% plus improvement in the speed of loading the website, a redesigned home page with
more focus on inspiring customers, building out category pages to help users discover
products within our expanded ranges and new imagery, with copy/zoom functionality.
Improvements have also been made to how promotions are presented on the website and
subsequently accessed via digital media searches.
To improve the purchase process the cart and checkout have been rebuilt to make them
faster and more intuitive, resulting in an improvement in the cart completion rate. The
delivery proposition has also been improved with a move to a new carrier portfolio and
warehouse consolidation. In addition to better communications with customers around
confirmation, delivery tracking and product care guides, customers are now able to select
a nominated delivery day for larger orders.
The changes made to the website and customer proposition have driven a 20 bps improvement
in the conversion rate.
Alongside improvements to the website it has always been an important element of the
strategy to expand the touch points where consumers can experience and purchase the eve
product range. eve's omni-channel approach continues to be focused on retail
partnerships. Considerable work was performed during the Period to pave the way for new
retail partnerships, which were secured in early July with Argos, Dunelm and Homebase.
Consolidated Statement of Profit and Loss and Other Comprehensive Income
6 month 6 month 12 month
period ended period ended period
30 June 2019 30 June 2018 ended 31
December
2018
Note (Unaudited) (Unaudited) (Audited)
GBPm GBPm GBPm
Revenue 2 12.9 18.8 34.8
Cost of sales 2 (6.2) (8.6) (16.4)
Gross profit 6.7 10.2 18.4
Distribution 2 (1.2) (2.3) (4.1)
expenses
Administrative (11.5) (19.9) (34.4)
expenses
Share-based payment 5 (0.4) (0.1) (0.3)
charges
Operating loss (6.4) (12.0) (20.3)
before
fundraise-related
expenditure
Fundraise-related (0.3) - -
expenditure
Operating loss (6.7) (12.0) (20.3)
Net finance income 0.0 0.0 0.0
Loss before tax (6.7) (12.0) (20.3)
Taxation - - 0.2
Loss for the period (6.7) (12.0) (20.1)
Other comprehensive
income
Foreign currency 0.1 - 0.1
differences from
overseas operations
Total comprehensive (6.6) (12.0) (20.0)
loss for the period
Basic and diluted 3 (2.88p) (8.66p) (14.46p)
loss per share
Consolidated Statement of financial Position
6 month period 6 month period 12 month
ended 30 June ended 30 June period ended
2019 2018 31 December
2018
Note (Unaudited) (Unaudited) (Audited)
GBPm GBPm GBPm
Non-current
assets
Property, plant - 0.0 -
and equipment
Intangible 0.8 0.6 0.7
assets
Other - 0.4 -
non-current
assets
0.8 1.0 0.7
Current assets
Inventories 1.2 1.0 1.1
Trade and other 3.3 2.8 4.6
receivables
Cash and cash 12.5 16.7 6.0
equivalents
Current tax - - 0.2
receivable
17.0 20.4 12.0
Total assets 17.9 21.5 12.6
Current
liabilities
Trade and other 4.2 5.6 4.6
payables
Provisions 0.7 1.0 1.0
4.9 6.6 5.5
Total 4.9 6.6 5.5
liabilities
Net assets 12.9 14.9 7.1
Equity
attributable to
the equity
holders of the
parent
Share capital 4 0.3 0.1 0.1
Share premium 48.6 36.7 36.7
Share-based 5 0.5 0.1 0.3
payment reserve
Retained (36.6) (22.1) (30.1)
earnings
Foreign 0.2 - 0.1
currency
translation
reserve
Total equity 12.9 14.9 7.1
Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2019
Share Share Share-based Retained Foreign Total
capital premium payment earnings currency equity
reserve translation
reserve
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
GBP GBP GBP GBP GBP GBP
Balance at 139,735 36,716,371 250,073 (30,073,145 98,720 7,131,755
1 January )
2019
Exercise of 683 - - - - 683
options
Issue of 120,317 11,911,415 - - - 12,031,732
new share
capital
Share-based - - 357,591 - - 357,591
payment
charge
Transfer on - - (93,923) 93,923 - -
exercise of
options
Total 121,000 11,911,415 263,668 93,923 - 12,390,007
transaction
s with
owners
Loss for - - - (6,660,017) - (6,660,017)
the period
Other - - - - 54,520 54,520
comprehensi
ve income
for the
period
Balance at 260,735 48,627,786 513,741 (36,639,238 153,240 12,916,264
30 June )
2019
For the 6 months ended 30 June 2018
Share Share Share-based Retained Foreign Total
capital premium payment earnings currency equity
reserve translation
reserve
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
GBP GBP GBP GBP GBP GBP
Balance at 138,631 36,716,371 138,794 (10,158,736 - 26,835,060
1 January )
2018
Exercise of 652 - - - - 652
options
Issue of - - - - - -
new share
capital
Share-based - - 78,194 - - 78,194
payment
charge
Transfer on - - (73,991) 73,991 - -
exercise of
options
Total 652 - 4,203 73,991 - 78,846
transaction
s with
owners
Loss for - - - (12,042,802 - (12,042,802
the period ) )
Other - - - - - -
comprehensi
ve income
for the
period
Balance at 139,283 36,716,371 142,997 (22,127,547 - 14,871,104
30 June )
2018
For the 12 months ended 31 December 2018
Share Share Share-based Retained Foreign Total
capital premium payment earnings currency equity
reserve translati
on
reserve
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
GBP GBP GBP GBP GBP GBP
Balance at 138,631 36,716,37 138,794 (10,158,7 - 26,835,06
1 January 1 36) 0
2018
Exercise of 1,104 - - - - 1,104
options
Issue of - - - - - -
new share
capital
Share-based - - 303,281 - - 303,281
payment
charge
Transfer on - - (192,003) 192,003 - -
exercise of
options
Total 1,104 - 111,279 192,003 - 304,385
transaction
s with
owners
Loss for - - - (20,106,4 - (20,106,4
the period 11) 11)
Other - - - - 98,720 98,720
comprehensi
ve income
for the
period
Balance at 139,735 36,716,37 250,073 (30,073,1 98,720 7,131,755
31 December 1 45)
2018
Consolidated Statement of Cash Flows
6 month 6 month period 12 month
period ended ended 30 June period
30 June 2019 2018 ended 31
December
2018
(Unaudited) (Unaudited) (Audited)
GBPm GBPm GBPm
Cash flows from
operating activities
Loss for the period (6.7) (12.0) (20.1)
Fundraise-related 0.3 - -
expenditure
Finance income (0.0) (0.0) (0.0)
Taxation - - (0.2)
Adjustments for:
Interest paid 0.0 0.0 0.0
Amortisation 0.1 0.1 0.1
Impairment - - 0.0
(Increase)/Decrease in (0.1) (0.2) (0.4)
inventories
(Increase)/Decrease in 1.5 1.2 (0.4)
trade and other
receivables
Increase/(Decrease) in (0.3) 1.1 0.0
trade and other
payables
Increase/(Decrease) in (0.2) 0.1 0.1
provisions
Share-based payment 0.4 0.1 0.3
charge
Fundraise-related (0.3) - -
expenditure
Net cash outflows from (5.4) (9.7) (20.6)
operating activities
Cash flows from
investing activities
Acquisition of - (0.0) (0.0)
property, plant and
equipment
Development of (0.3) (0.2) (0.4)
intangible assets
Other non-current - (0.4) -
assets
Net cash outflows from (0.3) (0.6) (0.4)
investing activities
Cash flows from
financing activities
Proceeds from the 12.0 0.0 0.0
issue of share capital
Net cash inflow from 12.0 0.0 0.0
financing activities
Net cash 6.4 (10.3) (21.0)
inflow/(outflow)
Cash at the beginning 6.0 26.9 26.9
of the period
Movement in cash 6.4 (10.3) (21.0)
Effect of exchange 0.1 - 0.1
rate fluctuations on
cash held
Cash at the end of the 12.5 16.7 6.0
period
Notes to the accounts
1. Basis of preparation
The unaudited interim consolidated statements of eve Sleep plc are for the six months
ended 30 June 2019 and do not comprise statutory accounts within the meaning of S.434 of
the Companies Act 2006. These consolidated financial statements have been prepared in
accordance with the recognition and measurement requirements of International Financial
Reporting Standards, International Accounting Standards and Interpretations (collectively
IFRSs) as adopted by the EU. They do not include all disclosures that would otherwise be
required in a complete set of financial statements. The consolidated financial statements
are presented in Sterling, which is also the Group's functional currency.
Going concern
The financial statements are prepared on a going concern basis notwithstanding that the
group is competing and disrupting an established market and as is typical for a business
at this stage of its lifecycle is still generating losses as it uses working capital to
develop the business model and market share.
The Group has reported an underlying EBITDA[1] loss of GBP5.9m in the six months ended 30
June 2019 (30 June 2018: GBP11.9m loss) and an operating cash outflow of GBP5.4m (30 June
2018: GBP9.7m outflow). The Group completed a share placing in February 2019 raising GBP11.7m
cash net of expenses (the "Placing") from existing and new investors, alongside GBP0.9m of
future advertising spend credits, which at 30 June 2019 remain fully available for use
against future advertising activity. The closing cash balance at 30 June 2019 is GBP12.5m.
The Directors set out the three core pillars of the re-build strategy in the Chief
Executive's statement to the 2018 Annual Report and have prepared a strategic plan in
order to grow the business in the refocused markets of UK&I and France. The plan is
supported by a financial model, underpinned by a number of key business drivers. The
business plan assumes continuing improvement in 2019 over those observed in 2018 for the
majority of these drivers. The principle assumptions adopted in the forecast model which
reflect these improvements are set out below:
· Revenue growth driven primarily by website traffic growth and conversion rate
improvements;
· Marketing expenditure reduction over the prior year and more targeted spend moving
forward.
To support the strategic plan the Directors have prepared cash flow forecasts covering a
period of more than 12 months from the date of the publication of these financial
statements. These forecasts in the base case indicate that the group will have sufficient
funds to meet its liabilities as they fall due until such point that it achieves
sustainable profitability and cash generation. However, the delivery of the strategic
plan is subject to uncertainty and these have been modelled through sensitivity analysis.
Where sensitivity analysis indicates the possibility of a material impact to the ability
of the group to meet liabilities as they fall due, the Directors have considered what
mitigating actions would be required and the timeframe within which those actions are
needed. The key mitigating factors are centred around further reductions in controllable
spend, including further marketing cost appraisal and reductions in other categories of
discretionary spend. The Directors also consider that it would be reasonable to target
working capital improvements such as reducing days through lower stock levels and
reducing debtor days through facilities such as debt factoring as the group does not
presently have any debt.
Uncertainties are such that potential mitigating actions, which would be over and above
the current strategic plan, may not be sufficient to mitigate all reasonably possible
downsides in assumptions. In such downsides the Directors would need further funding and
would consider ways of sourcing this, which could include debt or possible further equity
funding. The Directors consider that such scenarios are possible, but not the likely
outcome.
Based on the above, the Directors believe it remains appropriate to prepare the financial
statements on a going concern basis. However, these circumstances represent a material
uncertainty that may cast significant doubt upon the company's ability to continue as a
going concern and, therefore to continue realising its assets and discharging its
liabilities in the normal course of business. The financial statements do not include any
adjustments that would result from the basis of preparation being inappropriate.
Changes to accounting standards
The accounts have been prepared in accordance with accounting policies that are
consistent with the accounts of the year ended 31 December 2018 and that are expected to
be applied in the Report and Accounts of the year ended 31 December 2019.
The Company has considered the change in accounting policy associated with the
application of IFRS 16. The Company's lease of 128 Albert Street, London, NW1 7NE
terminated in line with the agreed upon lease term on 17 August 2019 and therefore the
Company has taken advantage of the short-term lease exemption for lease assets and lease
liabilities where a lease term ends within 12 months of the date of initial application
of IFRS 16. Thus the presentation of this lease as an operating lease for the six months
ending 30 June 2019 remains consistent with previous periods under IAS 17.
On 1 August 2019 the Company commenced a 24-month lease of 29A Kentish Town Road, London,
NW1 8NL. The Company has recognised a lease asset and lease liability in relation to this
lease from the inception of the lease.
2. Segmental Analysis
IFRS 8, "Operating Segments", requires operating segments to be determined based on the
Group's internal reporting to the Chief Operating Decision Maker. The Chief Operating
Decision Maker has been determined to be the executive board and has determined that the
primary segmental reporting format of the Group is geographical by customer location,
based on the Group's management and internal reporting structure.
The executive board assesses the performance of each segment based on revenue and gross
profit after distribution expenses, which excludes administrative expenses.
For the period 1 January 2019 - 30 June 2019
(Unaudited)
UK&I France Rest of Rest of Total
Europe World
GBPm GBPm GBPm GBPm GBPm
Revenue 10.2 2.8 0.0 0.0 12.9
Cost of sales (4.7) (1.5) 0.0 0.0 (6.2)
Gross Profit 5.5 1.2 0.0 0.0 6.7
Distribution expenses (0.8) (0.5) 0.1 0.0 (1.2)
Segmental results 4.7 0.7 0.1 0.0 5.5
Administrative expenses (11.5)
Share-based payment (0.4)
charge
Fundraise-related (0.3)
expenditure
Net finance income 0.0
Loss before tax (6.7)
For the period 1 January 2018 - 30 June 2018
(Unaudited)
UK&I France Rest of Rest of Total
Europe World
GBPm GBPm GBPm GBPm GBPm
Revenue 10.3 3.9 4.3 0.4 18.8
Cost of sales (4.6) (1.9) (1.9) (0.2) (8.6)
Gross Profit 5.7 2.0 2.4 0.2 10.2
Distribution (0.9) (0.5) (0.9) (0.0) (2.3)
expenses
Segmental results 4.8 1.5 1.4 0.1 7.9
Administrative (19.9)
expenses
Share-based payment (0.1)
charge
Net finance income 0.0
Loss before tax (12.0)
For the year ended 31 December 2018
(Audited)
UK&I France Rest of Rest of Total
Europe World
GBPm GBPm GBPm GBPm GBPm
Revenue 22.5 6.8 4.7 0.7 34.8
Cost of sales (10.7) (3.2) (2.2) (0.4) (16.4)
Gross Profit 11.8 3.7 2.5 0.4 18.4
Distribution (1.7) (1.2) (1.1) (0.1) (4.1)
expenses
Segmental results 10.1 2.5 1.5 0.3 14.3
Administrative (34.4)
expenses
Share-based payment (0.3)
charge
Net finance income 0.0
Loss before tax (20.3)
No analysis of the assets and liabilities of each operating segment is provided to the
Chief Operating Decision Maker in the monthly management accounts. Therefore no measure
of segmental assets or liabilities is disclosed in this note.
Due to the nature of its activities the group is not reliant on any major customers.
3. Earnings per share
The basic earnings per share is calculated by dividing the net profit attributable to
equity holders of the Group by the weighted average number of ordinary shares in issue
during the year.
30 June 2019 30 June 2018 31 December 2018
(Audited)
(Unaudited) (Unaudited)
Weighted average 231,586,565 139,051,360 139,087,779
shares in issue
Loss attributable to (6,660,017) (12,042,802) (20,106,411)
the owners of the
parent company (GBP)
Basic earnings/(loss) (2.88) (8.66) (14.46)
per share (pence)
Diluted (2.88) (8.66) (14.46)
earnings/(loss) per
share (pence)
EPS and diluted EPS are not calculated for each class of share as the shares carry the
same right to share in profit or loss for the year.
For the periods presented the weighted average number of shares used for calculating the
diluted loss per share are identical to those for the basic loss per share. This is
because the outstanding share options would have the effect of reducing the loss per
share and would not be dilutive under IAS 33.
At 30 June 2019, options outstanding amounted to 12,239,449 (30 June 2018: 4,583,521).
Given the loss for the period of (GBP6,660,017) loss (six months to 30 June 2018: loss of
(GBP12,042,802)), these options are anti-dilutive.
4. Share Capital
Allotted, issued and fully paid:
30 June 2019 30 June 2018 31 December 2018
(Audited)
(Unaudited) (Unaudited)
Number of ordinary 260,735,630 139,283,371 139,735,160
shares
Nominal value per (0.001) (0.001) (0.001)
share (GBP)
Share Capital 260,736 139,283 139,735
5. Share-based payment charge
The Group recognised a charge of GBP0.4m related to share-based payments during the six
months to 30 June 2019 (six months to 30 June 2018: GBP0.1m), all of which relates to
equity-settled schemes. A charge of GBP0.3m was recognised during the year 2018.
The Company issues equity-settled share-based payments to certain employees, whereby
employees render services in exchange for shares or rights over shares of the parent
company. Equity-settled awards are measured at fair value at the date of grant. The fair
value is calculated using an appropriate option pricing model and is expensed to the
Statement of Total Comprehensive Income on a straight-line basis over the vesting period
after allowing for an estimate of shares that will eventually vest.
On 1 April 2019, those share option awards granted on 12 May 2017 and during 2018 were
cancelled. In accordance with IFRS 2, at the point of cancellation the Company
accelerated the vesting period and immediately recognised the remaining share-based
payment charge totalling GBP0.2m associated with these share options.
The number and weighted average exercise prices of share options are as follows:
Weighted Number of Weighted Number of Weighted Number of
average options average options average options
exercise exercise exercise
price price price
To 30 June 30 June To 30 June 30 June To 31 31
2019 2019 2018 2018 December December
2018 2018
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited)
GBP GBP GBP
Outstanding 0.613 3,203,153 0.519 5,642,703 0.519 5,642,703
at the
beginning
of the
period
Granted 0.001 11,936,413 - - 1.010 242,500
during the
period
Forfeited 0.621 (725,285) 0.485 (419,194) 0.768 (1,577,90
during the 9)
period
Exercised 0.001 (683,146) 0.001 (639,988) 0.001 (1,104,14
during the 1)
period
Cancelled 1.012 (1,491,686) - - - -
during the
period
Lapsed - - - - - -
during the
period
Outstanding 0.001 12,239,449 0.595 4,583,521 0.613 3,203,153
at the end
of the
period
Exercisable 0.001 713,697 0.001 837,450 0.001 836,875
at the end
of the
period
The weighted average share price at the date of exercise of share options exercised
during the period to 30 June 2019 was 6.78p (30 June 2018: 125.03p).
All options outstanding at the period end have an exercise price of GBP0.001 and a weighted
average contractual life of 10 years.
Awards are categorised with reference to different fair values calculated for each
agreement.
The fair value of employee share options is measured using a Black-Scholes model.
Measurement inputs and assumptions are as follows:
Award 1 Award 2 Award 3 Award Award 5 Award 6
4
16 Jan 16 Jan 2017 23 Jan 25 Jan 26 Jan 20 Feb
2017 2017 2017 2017 2017
Share Ord C Ord Ord Ord Ord Ord
Class
Fair Value GBP0.06 GBP0.10 GBP0.10 GBP0.10 GBP0.10 GBP0.10
at Grant
Date
Exercise GBP0.001 GBP0.001 GBP0.001 GBP0.001 GBP0.001 GBP0.001
Price
Expected 103% 103% 103% 103% 103% 102%
Volatility
*
Option 10 years 10 years 10 10 10 10
Life years years years years
Risk-free 0.200% 0.200% 0.235% 0.276% 0.300% 0.148%
interest
rate
Award 7 Award 8
1 Apr 2019 23 May 2019
Share Class Ord Ord
Fair Value at Grant Date GBP0.07 GBP0.06
Exercise Price GBP0.001 GBP0.001
Expected Volatility* 82% 84%
Option Life 10 years 10 years
Risk-free interest rate 1.000% 1.000%
*Expected volatility is measured at the standard deviation of expected share price
movements and based on a review of volatility experienced by listed companies of
comparable industry sector and years of establishment.
=----------------------------------------------------------------------------------------
[1] Underlying EBITDA is defined as earnings before interest, tax, depreciation,
amortisation, share-based payment charges (2018 and 2019) and fundraise-related
expenditure (2019 only).
ISIN: GB00BYWMFT51
Category Code: IR
TIDM: EVE
LEI Code: 2138007BAC29AUXWQE6
Sequence No.: 21340
EQS News ID: 880129
End of Announcement EQS News Service
(END) Dow Jones Newswires
September 26, 2019 02:00 ET (06:00 GMT)
Esr 2022 (LSE:EVE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Esr 2022 (LSE:EVE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
