The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Decent update,and certainly on the path for recovery....having said that,the company still has much to do to convince the market that they are finally changing old bad habits....remains to be seen,but I am holding tight for the time being....GLA.
Their interim guidance was revenue of around £25-27 mln, so it’s a bit lower than guidance.
But their cost cutting and financial mgt is far far more important than that, plus it sounds like their trading in Q4 is showing an uptrend.
I think this is a bloody goo update. Given how cutthroat the bed in a box market is, with competitions offering near permanent discounts, it sounds like EVE have weathered that nvironment extremely well.
Cash is at around 3p ish per share, so still pretty healthy, and people’s estimates n here.
Well done EVE
L.
Yeah, for sure. The update is a pretty good one.
Revenue was about £1.5 mln shy of their interim guidance, but still reasonably healthy.
But the cost cutting, and the net cash position seems better than expected.
They’ve got cash of around 3p per share, with the prospect of further cost cutting, and I like the comment eat the end suggesting that the last 2 or 3 months they’re trading profitably..
On the whole I’d say it deserves a bit of a re-rate..
L.
We are on our way to 10p...yay!!
Wow. £7.8 million net cash - last 4 months of 2019 break even makes for a very positive start to 2020 and an mcap of only £5Mish. Strong buy!
brilliant update considering
Operational and strategic highlights
eve's premium hybrid product announced as the top scoring mattress by Which? in December 2019;
Product and range expansion in-line with the rebuild strategy, with the contribution of non-mattress sales1 increasing by 200 bps in the UK and 600 bps in France;
Customer repeat rates1 up 230 bps in the UK&I and 360 bps in France;
Signed and launched retail partnerships with Argos, Homebase and Dunelm;
Landing of new brand campaign featuring the eve sloth - increasing unprompted awareness by 50%.
Financial highlights
Group revenues in core markets of £23.8 million (2018: £29.3m);
43% year-on-year reduction in full year EBITDA losses (£10.8m), ahead of expectations;
51% full year reduction in cash burn;
Net funds at 31 December 2019 of £8.1m, consisting of £7.8m of net cash and £0.25m of advertising credits with Channel 42;
Overheads for the year have reduced by 27% with further run-rate savings in Q4.
2019 Trading
The Company has continued to progress its rebuild strategy, prioritising long term profitability and cash generation over short-term sales growth and market share gains. Notwithstanding the year on year decline in revenue, the Company has delivered a reduction in EBITDA losses ahead of its plans, along with a halving in the cash burn. This shift towards more efficient marketing and higher quality traffic, coupled with a more streamline cost base has driven a reduction in EBITDA losses for the full year of 43% to approximately £10.8m (2018: £19.2m). This translated into a 51% reduction in cash burn to £10.3m (2018: £20.9m) and a year-end net cash balance of £7.8m, plus £0.25m of advertising credits with Channel 4.
2020 outlook
In Q4 2019 the Company made significant further cost reductions, which is flowing through to an improving cash-burn and bottom line performance compared to Q1-Q3 2019. Accordingly, management considers that its trading in the last four months of the year is more indicative of its prospects for 2020. In the last four months of the year, the Company has for the first time broken even at the operating level (positive margin contribution after all direct and marketing costs but before overheads).
eve plans to publish its full year audited results on 24 March 2020.