RE: Market cap versus revenue, profit and cash18 May 2021 11:07
Broker, worst case scenario (for eve) is that the covid era boost to their revenue will be short lived and the losses will grow again as people return to the high street. Ultimately, eve would go bust.
They are boosting spending in France to increase sales there and that marketing spend is going to deplete the net cash of £8.4M you mention. The bank balance will definitely be lower when they next report.
I'm of the opinion that the good sales will continue (hopefully France will kick-in too) and profits will arrive (sooner or later – but will arrive).
When shop reopened last summer after the first lockdown, eve continued to have buoyant sales through the summer and autumn. November Black Friday was super-busy for them. Hopefully the same will be true now, and they have a wider range of products now.
If you look at trustpilot reviews, https://uk.trustpilot.com/review/www.evesleep.co.uk/transparency the last 12 months have received more reviews than ever before. We are heading towards 260 review in May and that beats May 2020 when the boost was already underway. They do collect TP reviews slightly differently now but there wasn't a sudden change either way when the method altered so I personally don't see that as unduly significant.
They have an excellent CEO, Cheryl Calverley.