LONDON (Alliance News) - Indian online fashion retailer Koovs PLC reported Tuesday an interim pretax loss in its maiden results statement.
The retailer, which listed on AIM in March, reported a pretax loss of GBP2.0 million for the six months to March 31, compared with a pretax profit of GBP1.0 million for the 14-month period from August 2, 2012 to September 30, 2013, partly due to GBP801,000 in IPO-related costs.
Revenue in the recent period totalled GBP633,000, compared to GBP3.2 million in the longer earlier period. The revenue was generated from the supply of designs and merchandising services to Koovs India, the operator of the Koovs.com website.
Koovs acquired 57.5% of Koovs India on March 10, using GBP16.8 million of the GBP22.0 million raised in its initial public offer. Since then revenue is coming from the sale of products in India at wholesale to Koovs India and has amounted to GBP89,000 in the 21 days since acquisition, Koovs said.
"In these early days of development, revenue is at a low level and gross margins are compromised by the low volumes....Trading since the year end has been slightly ahead of our expectations," the company said.
Back in March, Koovs said it was planning to use its IPO proceeds to build stock, increase marketing and fund operating losses as the business continues its rapid growth.
Koovs' chairman is British multi-millionaire media entrepreneur and politician Lord Waheed Alli, who was chairman of ASOS PLC until November 2012. He founded the company along with former ASOS product developer Robert Bready.
Koovs also said it had appointed Mary Turner as a non-executive director. Tuner is chief executive of AlertMe.com, a provider of smart controls for connected homes.
Koovs' shares were down 1.8% at 140.00 pence Tuesday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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