Interim Results22 Dec 2016 08:03
Things that are encouraging to me:
Large increases in sales, web traffic, registered users and active customers. I'm deliberately not stating the 3 digit increases as its there for all to see.
Orders via mobile (very significant) now at 62% of transactions with a 421% increase in orders using the Kooks app. Now at 1.7 million social media followers - 3 times the instagram presence and double the Facebook engagement of its nearest competitors.
Sensible investment -£9m acquisition of stake in koovs Marketing CPL bringing Kooks PLC ownership to 100%.
Additional and expandable 2,800m in warehouse space.
Rapid response to demonetisation - this was only short term but highlighted for me how nimble this company is - 50% digital payments from a previous 30% - and continuing strong sales in Nov and Dec. Simplified payments is key.
Private label growth is rocketing - now at 40% of sales (higher margins) - an icrease of 124%.
Improved distribution and customer satisfaction - REVIEW SCORES are now significantly ahead of all competitors - this is massive for me.
Losses in line with expectations and I like this bit - £3.2 million of marketing funds have been prepaid to secure significantly reduced media rates. This for me demonstrates a keen eye on the rate of cash burn and is another example of their forward thinking.
Finally, a further £12.9 million has been raised since 30th September meaning there is plenty there to keep this moving along nicely.
A much better and much clearer RNS than those reported previously.
For me, I have to say HOLD as I'm already in but I have to say I would be buying this well ahead of the next results- it should be going places.
Matt
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