Koovs PLC Trading Statement (2490J)
02 April 2015 - 5:00PM
UK Regulatory
TIDMKOOV
RNS Number : 2490J
Koovs PLC
02 April 2015
2 April 2015
Trading Update
Koovs plc ("Koovs" or the "Company")
Koovs plc (AIM:KOOV), the fashion-forward business focused on
the young Indian e-commerce market, today announces a trading
update for the year ended 31 March 2015.
Highlights
Year to Year to
31 March 2015 31 March 2014 Growth
Expected Koovs.com
net sales(1) GBP000 2,650 720 +268%
Visits to website Millions 20.9 7.6 +175%
-- Strong sales growth at Koovs.com has continued as the brand strengthens.
-- Excellent progress across the five strategic objectives set out at the IPO:
- Fashion credibility established with over 3000 styles in 22
fashion trends designed in our London studio
- International brands featured on the site extended from 30 to
70
- High profile design collaborations continued with three
launched including Henry Holland and Mawi jewellery
- Price and delivery promise: achieved lower pricing on private
label and faster delivery times
- Technology: launched apps and a mobile-enhanced site to
support the rapid growth in access from mobile devices
-- Management expects the cost of marketing in the year to 31
March 2015 to be 210 million rupees (GBP2.1m) higher than
originally anticipated, at approximately 320 million rupees
(GBP3.2m). We now expect these higher costs to continue, reflecting
the rapid rate of growth in the Indian e-commerce market which is
expected to grow from $2.3 billion to $32 billion over the next
five years(2) .
-- Net cash in the Koovs group of GBP12m at the year end.
-- Recognising the exceptional opportunity, the Board will be
seeking additional funding in due course to accelerate
development.
Commenting on the announcement Waheed Alli, Chairman, said:
"We are pleased with the progress made in our first year. By any
standards we have delivered exceptional growth as we continue to
strengthen our fashion-forward credentials in India. We have great
product, at the right price, presented in a fashion-credible
environment and this is resonating with consumers.
"We want to build on the momentum achieved so far and seize the
opportunity available to us. The marketing costs are higher than we
had anticipated reflecting the pace of growth in the Indian
economy. We will therefore seek further funding in due course to
realise the potential of the business and the market."
Results for the year to 31 March 2015 will be announced on 2
July 2015.
1. Sterling equivalent at constant exchange rates of sales made
through the Koovs.com website including taxes, net of returns. This
does not represent the revenue of the Koovs plc group.
2. Source: Technopak
For further information, please contact:
Koovs plc Tel: +44 (0)20 7151 0170
Roy Naismith
Peel Hunt LLP
Dan Webster / Richard Brown Tel: +44 (0) 20 7418 8900
Jock Maxwell Macdonald (ECM)
Brunswick Group LLP
Nick Claydon /Natalia Dyett/ Tel: +44 (0) 20 7404 5959
Rebecca Lum
This information is provided by RNS
The company news service from the London Stock Exchange
END
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