LONDON (Alliance News) - Koovs PLC on Wednesday said it knows of no specific reason for the sharp rise in its share price.
The India based online fashion retailer's stock has jumped 28% to 11.00 pence each.
The company expects to secure a GBP1.5 million loan from Executive Chairman Waheed Alli in the near future, which will provide the company with enough cash resources through the end of August.
As reported in March, it requires up to GBP50.0 million in investment to fund its acceleration plan. A "significant" part of this will be spent on marketing, where Koovs said there was a "clear" correlation between spending and sales achieved.
It will continue to focus on cash preservation while it secures funding, with cash balances on in March at GBP3.5 million.
Koovs also said it expects second half gross sales to fall due to cash conservation plans. Sales for the financial year to March are expected to be GBP14.5 million, down from the previous year's GBP18.6 million.
The loss before interest, taxes, depreciation, and amortisation is guided to be GBP14.4 million compared to GBP19.6 million the prior year.
