George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksEVE.L Regulatory News (EVE)

  • There is currently no data for EVE

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Eve Sleep plc: Trading Update

19 Jan 2022 07:00

Eve Sleep plc (EVE) Eve Sleep plc: Trading Update 19-Jan-2022 / 07:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.


Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)"

 

Trading update

 

Group revenue 11% ahead of 2019 pre-Covid comparators, targeting UK&I breakeven in 2022

 

eve Sleep ("eve", the "Group" or the "Company"), the direct to consumer sleep wellness brand operating in the UK, Ireland (together "UK&I") and France announces a trading update for the full year ended 31 December 2021. All figures remain subject to audit. The Company plans to publish its full year audited results on 24 March 2022.

 

 

Business highlights

 

Two year Group revenue growth of 11% achieved on 40% lower marketing spend Broadened range to operate in 6 categories, having developed bedframes into a sizable business Premium ranges now account for over 40% of revenue Continued expansion into gifting and wellness, now with over 50 SKUs Robust supply chain; average delivery lead times for all large items remains below 10 days

 

Financial highlights

 

UK&I revenue increased 10% to £22.5m (2020: £20.5m) and 22% on 2019 pre-Covid comparatives Group revenue increased 6% to £26.6m (2020: £25.2m) and 11% on 2019 comparatives EBITDA losses in H2 reduced 20% to £0.9m (2020 H2: loss £1.1m) In-line with our plans, higher marketing investment resulted in full year EBITDA losses increasing to £2.9m, a 73% reduction on pre covid 2019 comparators (2020: EBITDA loss of £2.0m, 2019: £10.7m loss) Cash outflow in H2 reduced to £0.7m (2021 H1: £3.1m outflow) Closing net cash at 31 December 2021 of £4.5m (2020: £8.3m) following a £1.0m outflow in H1 2021 for one-off factors relating to increased stock holding, payment of deferred VAT and other working capital movements

 

Strong 2021 performance led by the UK

 

This is the third year of consecutive revenue growth in the UK&I market, demonstrating clearly that the benefits of the rebuild strategy continue to deliver and that the recovery is built on sustainable foundations. Revenue growth in the UK&I was led by ongoing strength in eve's ecommerce platform, reflecting the now structural shift to online ordering. Demand was strong throughout the year, including in December, where year-on-year growth remained positive despite strong comparatives resulting from heavy lockdown restrictions and store closures over the prior year Christmas 2020 period.

 

Revenue growth in the UK&I was broad based across mattresses and non-mattress products, with particular strength in eve's award winning premium hybrid mattress, the spindle bedframe and the temperature balancing protector, in addition to new ranges, most notably the 'sleep away' sleep over range. The increasing expansion into sleep gifting and wellness ranges not only acts as a key differentiator to more price led, mattress focused peers but it is also driving up attachment rates as eve builds an increasingly loyal customer following.

 

There are some early positive signs of progress in France as we begin the reinvestment programme, including improved conversion rates in the fourth quarter, against what remains a challenging market backdrop of covid accelerated comparators and heavy competitor activity.

 

eve's local manufacturing and re-engineered logistics has enabled the Company to navigate the industry wide supply chain issues and labour challenges that continue to constrain growth and fuel inflationary pressures effectively. However, in the Christmas trading period high levels of covid infection placed additional strain on the delivery network resulting in customer service challenges. We believe these challenges will be short lived and reflect the current peak of absence due to illness across the delivery network, and hence foresee customer experience returning to our usual high levels over the next few months.

 

2022 trading and outlook - targeting UK&I breakeven

Notwithstanding increasing pressures on household discretionary income as the cost of living crisis starts to bite, trading in the first few weeks of the year has started well, with the Group continuing to show year on year growth against challenging comparisons with last year's January lockdown, (with 2021 one of the strongest January's for e-commerce on record). The rebuild strategy and the ongoing push into sleep wellness give the Company confidence that despite the limited visibility on the broader macro-economic backdrop, eve can move the UK&I business to a position of breakeven in the current financial year whilst continuing with the strategy in France to reach sustained topline growth with a positive marketing contribution before overheads.

 

 

The management team will be hosting a live presentation with Q&A for retail investors at 10:00 GMT today. The presentation can be accessed via the Investor Meet Company platform. Interested investors can sign up to Investor Meet Company for free and add to meet EVE SLEEP PLC via the link: https://www.investormeetcompany.com/eve-sleep-plc/register-investor

 

Cheryl Calverley, CEO of eve Sleep commented:

 

"eve has made great progress in 2021, overcoming the many external challenges we have faced, thanks to the dedication and unswerving commitment of our incredible team. Our UK&I business continues to go from strength-to-strength, on reduced marketing spend, achieving 22% growth on pre-Covid 2019 comparatives. Whilst COVID has put temporary challenges at the door of the delivery network and a resulting pressure on our customer service team, eve's unique strength is our supportive culture. This has seen an 'all hands on deck' mentality to addressing these customer issues, with the executive team and colleagues from right around the business leaning in to solve queries.

 

eve is fast evolving into a unique, digitally led retail business, focused on the growing area of sleep wellness. This transition is expected to accelerate, becoming more evident in 2022 as brand consideration continues to grow, alongside the launch of new products and services, with the resulting improvement in customer repeat rates. As a result we're proud to say we expect to move the UK&I business to breakeven in 2022."

 

 

 

 

 

For further information, please contact:

eve Sleep plc

Cheryl Calverley, Chief Executive Officer

Tim Parfitt, Chief Financial Officer

 via M7 Communications LTD

finnCap Ltd (NOMAD and Broker)

Matt Goode / Teddy Whiley - Corporate Finance

Alice Lane / Charlotte Sutcliffe - Equity Capital Markets

+44 (0)20 7220 0500

M7 Communications LTD

Mark Reed

+44 (0)7903 089 543

 

 


ISIN:GB00BYWMFT51
Category Code:TST
TIDM:EVE
LEI Code: 2138007BAC29AUXWQE6
Sequence No.:137372
EQS News ID:1270113
 
End of AnnouncementEQS News Service

UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

Date   Source Headline
18th Nov 20227:00 amRNSCancellation - ESR 2022 plc
17th Oct 20227:30 amRNSSuspension - Eve Sleep PLC
17th Oct 20227:00 amRNSAppointment of Administrators
28th Sep 20227:00 amRNSForm 8.3 - eve Sleep plc
27th Sep 20226:17 pmRNSForm 8.3 - eve Sleep plc
27th Sep 20227:00 amRNSForm 8.3 - eve Sleep plc
27th Sep 20227:00 amRNSForm 8.3 - eve Sleep plc
26th Sep 20224:40 pmRNSSecond Price Monitoring Extn
26th Sep 20224:36 pmRNSPrice Monitoring Extension
26th Sep 20227:30 amRNSForm 8.3 - eve Sleep plc
23rd Sep 20229:17 amRNSForm 8.3 - eve Sleep plc
21st Sep 20228:47 amRNSForm 8.3 - eve Sleep plc
20th Sep 20222:05 pmRNSSecond Price Monitoring Extn
20th Sep 20222:00 pmRNSPrice Monitoring Extension
20th Sep 202211:05 amRNSSecond Price Monitoring Extn
20th Sep 202211:00 amRNSPrice Monitoring Extension
20th Sep 20229:51 amRNSForm 8.3 - eve Sleep plc
20th Sep 20227:01 amEQSEve Sleep plc: Interim Results and FSP Update
15th Sep 20225:36 pmRNSForm 8.3 - Eve Sleep Plc
12th Sep 20227:56 amRNSForm 8.3 - eve Sleep plc
5th Sep 202210:24 amRNSForm 8.3 - eve Sleep plc
2nd Sep 20229:54 amRNSForm 8.3 - eve Sleep plc
26th Aug 20225:04 pmRNSForm 8.3 - eve Sleep plc
25th Aug 202212:46 pmRNSForm 8.3 - eve Sleep plc
17th Aug 20228:50 amRNSForm 8.3 - eve Sleep plc
11th Aug 20227:00 amRNSForm 8.3 - eve Sleep plc
9th Aug 20229:18 amRNSForm 8.3 - eve Sleep plc
4th Aug 20222:08 pmRNSForm 8.3 - eve Sleep plc
4th Aug 20222:03 pmRNSForm 8.3 - eve Sleep plc
4th Aug 20221:59 pmRNSForm 8.3 - eve Sleep plc
21st Jul 20227:00 amEQSEve Sleep plc: Trading and FSP Update and Non-Executive Director Board Change
11th Jul 202211:20 amRNSForm 8.3 - eve Sleep plc
11th Jul 20227:00 amRNSForm 8.3 - eve Sleep plc
24th Jun 20223:33 pmGNWForm 8.3 - Octopus Investments - Eve Sleep plc
21st Jun 20228:00 amEQSForm 8.3 - 4 Ventures Limited - Form 8.3
16th Jun 20226:22 pmEQSForm 8.3 - Eve Sleep plc: Paul Pindar Form 8.3
9th Jun 20227:00 amRNSForm 8.3 - eve Sleep plc
7th Jun 20226:05 pmEQSEve Sleep plc: AMENDMENT - PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER
7th Jun 20224:24 pmRNSForm 8.3 - eve Sleep plc
7th Jun 20222:06 pmRNSSecond Price Monitoring Extn
7th Jun 20222:00 pmRNSPrice Monitoring Extension
7th Jun 20221:50 pmEQSEve Sleep plc: PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER
7th Jun 20229:03 amRNSForm 8 (DD) - eve Sleep plc
6th Jun 20223:09 pmGNWForm 8.3 - Octopus Investments - Eve Sleep plc
6th Jun 20229:05 amRNSSecond Price Monitoring Extn
6th Jun 20229:00 amRNSPrice Monitoring Extension
6th Jun 20227:00 amEQSEve Sleep plc: Review of Strategic Options, Formal Sale Process and Trading Update
19th May 20224:21 pmEQSEve Sleep plc: Result of AGM
16th May 20224:30 pmEQSEve Sleep plc: Posting of 2021 Annual Report and Financial Statements and Notice of Annual General Meeting
3rd May 20223:07 pmEQSEve Sleep plc: Total Voting Rights

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.