LONDON (Alliance News) - Koovs PLC on Thursday reported a narrowed interim loss and declared it is now "back to business" after securing funding and restarting marketing operations.
Shares in the Indian online fashion retailer were trading down 5.1% at 8.40 pence each on Thursday.
The company said during the six months to September it was able to secure funding of GBP45 million necessary to help it deliver on its plans and achieve growth.
In order to preserve cash, prior to receiving the investments, the firm cut marketing spend by 46% and stock levels by 49%, resulting in a drop in revenue for the full year to March 2018 to GBP6.4 million.
"The funding secured in the first half allows us to get back to business and in the second half to date we have restarted marketing activities and expanded the product range, increasing the current trading margin," Chief Executive Officer Mary Turner said.
She added: "Longer-term, the successful fundraising represents a transformational opportunity for Koovs to drive sustainable growth, enhance margins and build a path to profitability, with partners that will help us to consistently build our brand, enhance our supply chain, and grow our product range."
For the first half ended September 30, Koovs's pretax loss came in at GBP6.4 million compared to GBP7.8 million a year prior, on the back of cash preservation and cost savings initiatives, the retailer said.
Revenue however, reduced 40% to GBP2.1 million from GBP3.9 million as sales in the half-year were impacted by reduced order value and higher taxes.
Furthermore, Koovs announced the appointment of Avni Biyani as non-executive director of the firm with effect form January.
Biyani is currently a director of Future Lifestyle Fashions Ltd, a significant shareholder in Koovs and part of India's largest retail business, Future Group.
