Koovs PLC Trading Update (1202Y)
May 07 2019 - 2:01AM
UK Regulatory
TIDMKOOV
RNS Number : 1202Y
Koovs PLC
07 May 2019
7 May 2019
Koovs plc
("Koovs" or the "Company")
Trading Update
Positive momentum and growth resumed
Koovs plc (AIM: KOOV), the Western fashion experts for online
Indian consumers, is pleased to provide an update on its trading
performance for the 12 months to 31 March 2019.
Key Highlights
-- Gross Order Value ("GOV") stood at GBP12.8m (FY 2018: GBP14.8m)
-- H2 GOV increased to GBP8.0m (H2 2018: GBP6.9m)
-- Trading margin increased to 18% (FY2018: 14%)
-- Web traffic up 50% at 75.9m compared to 2018
-- Social media base increased to 2.7m followers
Over the last 18 months, the Board has demonstrated its
experience and expertise, taking the decisions necessary to protect
the Koovs brand and to conserve resources during a period of
turmoil caused by demonetisation and the implementation of Goods
and Services Tax (GST); this included reducing marketing costs and
stock levels. The business has now emerged from this period and is
well positioned to deliver on its growth strategy. This is
evidenced in the first three months of calendar 2019 with GOV
increasing by 67% to GBP4.4m compared to the same period in
2018.
Separately, the Company has today announced that it has reached
a binding agreement, subject to shareholder approval, with Future
Lifestyle Fashions Limited ("FLFL"), part of Future Group, on the
mechanics for which FLFL will invest the balance of additional
funding of approximately GBP10.5 million into the Company, the
proceeds of which will be used to support Koovs' growth strategy.
Please refer to the Company's RNS this morning for further
information.
Lord Waheed Alli, Chairman of Koovs, commented: "Koovs has been
through challenging times over the last couple of years. Mary and
the team have taken the decisive actions necessary to help navigate
through these disruptions further highlighting the resilience of
our business model and the strength of the team. With the support
of our shareholders, the team is now driving the business forward
and we are confident we can achieve strong growth this financial
year. I would like to personally thank everyone for all their hard
work and dedication throughout this testing time."
Mary Turner, Koovs' Chief Executive Officer, added: "The
external factors that disrupted our business are now firmly behind
us. We have deployed the funds raised in 2018 to resume marketing
activities and expand the product range - this was the driving
force behind the growth in sales and trading margin experienced in
the second half of the year. We are now building on this positive
momentum and are starting to deliver the growth we always believed
the Company is capable of."
END
For further information please contact:
Koovs plc
Mary Turner / Robert Pursell
Tel: +44 (0) 20 7151 0170
Strand Hanson Limited (Nominated & Financial Adviser)
James Harris / Ritchie Balmer / Georgia Langoulant
Tel: +44 (0) 20 7409 3494
Whitman Howard Limited (Corporate Broker)
Nick Lovering (Corporate) / Mark Murphy (Institutional
Sales)
Tel: +44 (0) 20 7659 1234
Media enquiries:
Newgate Communications
Adam Lloyd / Fiona Norman
Tel: +44 (0)20 3757 6880
Koovs@newgatecomms.com
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Notes to Editors:
About Koovs
-- Koovs is a UK business that has built KOOVS.COM into India's
leading online western fashion destination. Koovs' fashion brands
are designed and developed in London exclusively for the young
Indian fashion market where two thirds of the population are under
the age of 35. It has 2.7m online social followers.
-- The tremendous potential of the Indian fashion market has
been further underlined by the Strategic Partnership with Future
Lifestyle Fashions Limited (FLFL) which is part of Future Group -
one of India's leading retail businesses and one of the top 10
fashion apparel companies in the world
-- Koovs' proprietary online technology platform powers
KOOVS.COM and is a proven market-leading success in India's rapidly
expanding e-commerce market. The capability and scalability of the
platform has been recognised by FLFL which has contracted Koovs to
build and maintain the online platform for its Brand Factory retail
format. For more information, please visit www.koovs.com and follow
us on Facebook, LinkedIn, Twitter @mykoovs and Instagram
@koovsfashion.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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