(Alliance News) - Shares in eve Sleep PLC rose early Tuesday after the online mattress seller said a shift towards more efficient marketing and streamlining of cost base had resulted in a sharply narrowed adjusted loss for 2019.
Eve Sleep shares were up 12% at 2.19 pence each in London in morning trade.
The London-based company said it has continued to progress its rebuild strategy, prioritising long term profitability and cash generation over short-term sales growth and market share gains.
For 2019, the company expects to post a loss before interest, taxes, depreciation and amortisation of GBP10.8 million, narrowed from GBP19.2 million loss a year ago. Group revenue in the company's Core markets is estimated to total GBP23.8 million versus GBP29.3 million.
Cash burn is predicted to reduce by 51% over 2019, with net funds at December 31 totaling at GBP8.1 million, consisting of GBP7.8 million of net cash and GBP250,000 of advertising credits with Channel 4.
James Sturrock, chief executive of eve Sleep commented: "We are well placed to make further significant progress in 2020, with a differentiated brand position, a broader product range than peers and ongoing improvements to the customer experience, supported by a lower cost base, a substantial cash balance and no debt. "
eve Sleep plans to publish its 2019 results on March 24.
By Tapan Panchal; tapanpanchal@alliancenews.com
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