Eve Sleep plc: Trading Update (1098863)
22 Julio 2020 - 1:00AM
UK Regulatory
Eve Sleep plc (EVE)
Eve Sleep plc: Trading Update
22-Jul-2020 / 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")
Trading update
Trading ahead of expectations, generated first positive cash flow
eve Sleep ("eve", the "Company), the direct to consumer sleep wellness brand
operating in the UK, Ireland (together the UK&I) and France announces a
trading update for the six months ended 30 June 2020 (the period).
Highlights
· Group revenue of GBP12.2 million - ahead of the Board's expectations
following strong trading in May and June
· Positive marketing contribution for the period1
· Underlying H1 EBITDA loss reduced year-on-year by c.80% to approximately
GBP1.2 million - ahead of the Board's expectations
· Cash flow positive in the period
· Net cash at 30 June 2020 of GBP9.1m (31 December 2019: GBP8.0m)
Trading and market backdrop
Trading since the start of April has continued to build through the period,
following some weakness in the latter part of March during the initial
stages of lockdown. May and June trading was ahead of the Board's
expectations and this momentum has continued into July, buoyed by a strong
homewares market, effective and efficient marketing and eve's online focused
proposition. The benefits of eve's three pillar rebuild strategy are
becoming increasingly evident, with strong brand awareness and the wider
product suite drawing new customers to the brand. Sales of premium
mattresses and bedframes continue to be strong, supported by wider sales
across toppers, pillows and duvets. There has also been a reduction in the
breadth of the competitor landscape, with a number of online mattress brands
withdrawing from the European market, whilst some store based competitors
have reduced the size of their retail estates.
Revenues for the six months are expected to be approximately GBP12.2 million
(30 June 2019: GBP12.9 million), with 25% growth in Q2 2020 compared to Q2
2019. A year-on-year reduction in revenues was budgeted for as the Company
continues to prioritise profitable sales over chasing top-line growth. This
disciplined sales strategy has driven a halving in marketing costs as a
percentage of revenues in the period to 25% (2019 H1: 51%).
The benefits of the additional cost efficiency measures taken in Q4 of last
year, combined with improved marketing efficiency and stronger trading in
the period has resulted in underlying EBITDA losses for the half reducing
year-on-year by approximately 80% to GBP1.2 million (2019 H1: GBP5.9 million
EBITDA loss).
eve has been cashflow positive in the period, with the cash balance
increasing by approximately GBP1.1m as at 30 June 2020, the first time the
business has generated a positive cashflow in a six month period. While the
cash balance is flattered by Government coronavirus support measures,
resulting in the deferment of approximately GBP0.5m of tax payments until
after the period end, continued improvements to cash management and stock
control have supported an underlying increase in cash of approximately
GBP0.6m.
Although trading since May has been materially ahead of the Board's
expectations, the business has historically been second half weighted, with
some important trading periods to come. Accordingly and set against a
backdrop of ongoing economic uncertainty the Board is leaving its full year
expectations unchanged at this time but is increasingly confident in the
out-turn for 2020.
Cheryl Calverley, CEO of eve Sleep commented:
"Trading through this complex period has been robust and ahead of our
previous expectations, and for the first time we have generated positive
cash flow over a sustained period. Our goal of profitability draws ever
closer as we continue to deliver our rebuild strategy, underpinned by growth
in customer numbers, an increasing contribution from wider sleep categories,
and improved marketing efficiency. These achievements have only been made
possible by our experienced and highly capable team who have shown
remarkable resilience, engagement and commitment throughout.
We are well placed to benefit from the accelerated shift to online ordering
and the increase in spend on homewares as consumers increase investment in
their homes. eve will continue to focus on driving value for our
shareholders and building a sustainably profitable business with strong
growth potential."
Footnote
1) Marketing contribution represents profit after all direct costs
including marketing but before central overheads
The information contained within this announcement is deemed by the Company
to constitute inside information stipulated under the Market Abuse
Regulation (EU) No. 596/2014.
For enquiries, please contact:
eve Sleep plc
Cheryl Calverley, Chief Executive via M7 Communications LTD
Officer
Tim Parfitt, Chief Financial Officer
finnCap Ltd - Nominated Adviser and Tel: +44 (0)20 7220 0500
Broker
Matt Goode / Hannah Boros - Corporate
Finance
Alice Lane - Equity Capital Markets
M7 Communications LTD - PR/IR Tel: +44(0)7903 089 543
Mark Reed
ISIN: GB00BYWMFT51
Category Code: TST
TIDM: EVE
LEI Code: 2138007BAC29AUXWQE6
Sequence No.: 77136
EQS News ID: 1098863
End of Announcement EQS News Service
(END) Dow Jones Newswires
July 22, 2020 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
Real-Time news about Esr 2022 Plc (London Stock Exchange): 0 recent articles
Más de Eve Sleep Plc Artículos de Noticias