(Alliance News) - Shares in mattress maker Eve Sleep PLC fell on Thursday after interim revenue fell sharply, despite losses improving on lower administration costs.
Shares in Eve Sleep were 8.0% lower at 2.67 pence in London on Thursday.
For the six months ended June, pretax loss improved to GBP6.7 million from GBP12.0 million the year prior. This was despite revenue falling to GBP12.9 million from GBP18.8 million the year before.
Revenue performance was hurt by the firm exiting non-core markets, which together contributed GBP4.7 million to 2018 interim revenue. Underlying performance was impacted by a 29% fall in revenue from its French business amid an increased focus on margin contribution over sales growth. In the UK, revenue fell 0.9% to GBP10.2 million.
Profit was helped, however, by administrative expenses falling to GBP11.5 million from GBP19.9 million the year prior.
"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," Eve Sleep Chief Executive Officer James Sturrock said.
"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," Sturrock added. "In tandem, costs and cash are better managed, which is evident in the first half 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," Sturrock continued. "We will continue to focus on the rebuild strategy through a combination of organic improvements and inorganic opportunities as and when they arise."
By Ahren Lester; ahrenlester@alliancenews.com
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