12 Jul 2017 07:00
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 £11.5m (H1 FY16: £5.1m) with strong e-commerce led performances across all territories. UK revenue grew 107% to £6.3m (H1 FY16: £3.0m) with combined revenue from all other countries in which eve operates increasing by 153% to £5.2m (H1 FY16: £2.1m).
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 £26bn 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 13th September.
Enquiries:
| |
eve Sleep plc Jas Bagniewski, Chief Executive Officer Abid Ismail, Chief Financial Officer
| via Instinctif Partners |
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 £26bn) 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 £35m gross proceeds to accelerate its growth strategy. The shares floated at 101p per share, valuing the business, post new money at c.£140m.