eve Sleep plc Half-year trading update (7805K)
12 July 2017 - 4:00PM
UK Regulatory
TIDMEVE
RNS Number : 7805K
eve Sleep plc
12 July 2017
12 July 2017
eve Sleep plc ("eve" or the "Company")
Half-year trading update
Revenue doubled, major expansion of Next Home partnership,
confident in full year
eve, the e-commerce focused, direct to consumer European sleep
brand, today provides a trading update covering the 26-week period
to 30 June 2017 (the "Period" or "first half").
Revenue for the period increased by 126% to GBP11.5m (H1 FY16:
GBP5.1m) with strong e-commerce led performances across all
territories. UK revenue grew 107% to GBP6.3m (H1 FY16: GBP3.0m)
with combined revenue from all other countries in which eve
operates increasing by 153% to GBP5.2m (H1 FY16: GBP2.1m).
The strong trading performance demonstrates eve's continuing
momentum and reflects the brand's increasing penetration in
existing territories, successful expansion into new markets,
extension of the product range and development of retail
partnerships.
eve's penetration of the UK market is expected to continue at
pace in the second half of the year with strong growth both online
and offline. The company's own website generates the vast majority
of sales and should continue to grow market share from increasing
brand awareness and the planned step-up in marketing spend. Offline
retail partnerships will see a major extension of the Next Home
agreement which will increase the current footprint from three to
55 stores by the end of July 2017. Combined with eve's presence in
selected Debenhams, Fenwicks and Bentalls stores, eve's UK physical
retail footprint will subsequently increase to 63 stores.
During the first half of the year, eve also continued its
Continental European expansion and is now present in all 14 of its
key target European markets, including the UK and Ireland. The
focus in the second half of the year will be on progressing the
marketing strategies for each territory. Additionally, eve is also
in advanced discussions with a number of selected retail partners
in all of its core European markets.
The Company remains on-course to meet the board's expectations
for the current financial year.
Jas Bagniewski, Chief Executive Officer, commented:
"Our successful IPO in May tops off what has been an outstanding
first half for eve, with sales more than doubling in the UK and
overseas. The monies raised will be used to support our rapid
growth in the GBP26bn European sleep market.
As the market continues its transition online, eve aims to fully
capitalise with its simple and compelling customer proposition,
which combined with a step up in marketing, is expected to drive
increased brand awareness and market share gains from the
traditional operators.
We approach the future with confidence and look forward to
delivering for all of our stakeholders."
The company will announce its Interim results for the 26-week
period ended 30 June 2017 on Wednesday 13(th) September.
Enquiries:
eve Sleep plc via Instinctif Partners
Jas Bagniewski, Chief
Executive Officer
Abid Ismail, Chief Financial
Officer
Peel Hunt LLP
Dan Webster
George Sellar
Max Irwin +44 (0) 20 7418 8900
Instinctif Partners
Mark Reed
Guy Scarborough +44 (0) 20 7457 2020
About eve Sleep
eve is an e-commerce focused, direct to consumer European sleep
brand, which designs and sells eve-branded mattresses and other
sleep products, including pillows, sheets and duvets.
The Company principally focuses on the design, branding,
marketing and selling of its products, with other aspects of its
operations, including manufacturing and fulfilment, being
outsourced. This model has enabled the Company to scale quickly
internationally without the requirement for significant capital
investment.
The Company's strategy is to continue to penetrate existing
territories further, expand into new markets, extend its product
range and develop its retail partnerships. Whilst the Company has
grown quickly since incorporation, its current market share of the
fragmented European sleep market (estimated to be worth GBP26bn) is
only an estimated 0.1 per cent. which the Directors believe
provides a significant opportunity for further expansion. The
Company's aim is to become the leading pan-European sleep
brand.
The CEO and co-founder of the business Jas Bagniewski,
previously worked at Rocket Internet as a Country Manager of
start-ups including Zalando and Groupon. He is supported by a
strong and experienced management team, headed by Paul Pindar as
Chairman.
In May 2017 the Company listed on the AIM market, raising GBP35m
gross proceeds to accelerate its growth strategy. The shares
floated at 101p per share, valuing the business, post new money at
c.GBP140m.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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