(Alliance News) - Parsley Box Group PLC reported a narrowed loss but a drop in new customer revenue in its half year results.
The Edinburgh-based provider of ready meals targeted at over 65s reported a pretax loss of GBP2.8 million in the six months to June 2022, compared to GBP5.4 million in the same period a year prior.
The company's revenue dropped 32% to GBP9.6 million this year from GBP14.0 million the year before.
Revenue from new customers dropped to GBP899,000 from GBP3.0 million the year before while repeat customer revenue fell to GBP8.7 million from GBP11.0 million last year.
Marketing expenses were reduced by 55% to GBP2.3 million from GBP5.0 million the year before. The drop in marketing reduced the revenue from new customers, the company noted, but also helped narrow the pretax loss.
The company said its financial focus remains "continued loss reduction and cash preservation."
The company is adapting its marketing strategy to target repeat, higher-spending customers. In August, after the period end, Parsley Box launched ParsleyClub, a membership scheme to reward customer loyalty. The company completed "in depth customer insight" research to help business planning.
As customers face a higher cost of living, Parsley Box also launched an "everyday low price" meal range.
The full year adjusted earning before interest taxes, depreciation and amortization loss forecast remains in line with market guidance.
Chief Executive Officer Kevin Dorren said: "The board remains focused on investment strategies to generate a longer term return to revenue growth, and are reorganising the business for the current revenue run rate to balance cash consumption. The company has strong shareholder support as evidenced during the March fund raise where board members invested over GBP3m of the total raised."
Shares in Parsley Box were trading 2.6% higher at 10.00 pence each in London on Tuesday morning.
By Chris Dorrell; chrisdorrell@alliancenews.com
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