TIDMKOOV
RNS Number : 6403Z
Koovs PLC
04 September 2018
4 September 2018
Koovs plc ("Koovs" or the "The Company")
Preliminary Results for the year ended 31 March 2018
Funding secured puts Koovs back on track to accelerate
growth
Koovs plc (AIM:KOOV), the fashion-forward business focused on
the young Indian e-commerce market, today announces its preliminary
results for the year to 31 March 2018.
Mary Turner, Chief Executive Officer, Koovs, said:
"Last year was marked by concerns over funding and we managed
our cash position prudently by reducing our marketing expenditure,
which inevitably impacted sales. However, I am delighted that since
FY18 we have successfully secured the requisite funding from a
number of investors including our strategic partners in HT Media
and Future Lifestyle Fashions Limited. We now have the necessary
capital to put Koovs back on track, deliver on our strategy and
accelerate our sustainable growth plan.
"Despite reducing our marketing spend last year, we continued to
grow brand awareness and maintained our leadership position for
customer experience and engagement, becoming one of Asia's most
trusted brands. This shows the strength and resilience of our
brand. I am also pleased we were successful in continuing to
deliver high value sales with improved margins in a wider market
driven by deep discounting.
"Looking ahead, growth is returning the India's ecommerce market
and with our funding now secured, we are resolutely focused on
scaling the business to leverage our competitive advantages as
India's best-established affordable fashion brand in what is the
world's fastest growing major economy."
FY18 Financial headlines:
-- Gross order value* down by 21% to INR1,259m / GBP14.8m (FY17:
INR1,616m / GBP18.6m) following reduction in marketing spend due to
focus on cash conservation given funding requirement in period
-- Improved quality of sales with trading margin* up by 163% to
INR114m / GBP1.3m (FY17: INR43m / GBP0.5m)
-- Trading margin percentage increased by 1,000bps to 14% (FY17:
4%) reflecting focus on reducing markdowns and driving high value
sales
-- Koovs plc revenue down by 29% at INR543m / GBP6.4m (FY17: INR761m / GBP8.7m)
-- Pre-tax loss reduced by 22% to INR1,312m / GBP15.3m (FY17:
INR1,691m / GBP19.3m) driven by cash preservation and cost saving
initiatives
-- Cash outflow from operating activities reduced by 50% to
INR1,191m / GBP13.9m (FY17: INR2,233m / GBP25.5m) with reduced
losses and improved working capital controls
* Explanation of metrics is provided in the trading performance
and KPIs section within the Operating Review
Operational highlights:
-- Significant progress in building brand and social base
o Brand awareness increased to 21% (FY17: 15%)
o Social media base increased by 400,000 followers to 2.4m with
1.9m on Facebook, generating three times the level of engagement
compared to Koovs' nearest competitor
o Won SAMMIE Award for 'Best Social Media Brand in Fashion
Apparel' for leadership in using social media as an integral part
of brand DNA
-- Maintained leadership position in customer experience
o Achieved highest customer Net Promoter Score amongst online
fashion retailers in India (Redseer - Jan 2018)
o Ranked No 1 for "Best Customer Experience in Online Retailers"
(Forrester Inc - Nov 2017)
o Voted "Favourite Fashion Portal" (Global Youth Forum)
o Named as one of Asia's Most Trusted Brands by IBC Corporation
USA
-- Delivered successful exclusive collaborations
o Designed exclusive capsule collections for Simply Be in the
UK
o Launched design collaborations with international designers
Gauri and Nainika and Danielle Helayel
o Launched social media fashion collaborations with Bollywood
stars including Taapsee Pannu, Rhea Chakraborty, Adah Sharma, Ahaan
Panday, Elli Avrram which together generated content with 7.4m user
engagements
Post Balance Sheet event: funding successfully secured from HT
Media and Future Lifestyle Fashions Limited
Since the year-end, and as previously disclosed to the market,
GBP22.1m of additional funding has been raised, including GBP12m
from Directors and investors, a GBP5.8m strategic investment from
Future Lifestyle Fashions Ltd ("FLFL"), part of the Future Group -
India's largest retail group, and most recently a GBP4.3m
media-for-equity deal from HT Media Limited ("HT Media"), one of
India's largest media companies and owner of the Hindustan
Times.
Furthermore, FLFL has conditionally agreed to further increase
its ownership of Koovs to 29.9%, requiring an additional GBP10m of
investment, and HT Media has conditionally agreed to invest an
additional GBP12.9m in media-for-equity over the next four years if
required by the Company.
Combined, the funding will provide Koovs with c.GBP45m of
working capital to deliver on the Company's strategic initiatives
to achieve scalable growth over the coming years.
Notes to Editors
Koovs is focused on building KOOVS.COM into the leading fashion
destination in India. The Company is headquartered in London, where
the majority of its design and buying team is based, with all other
operational functions based in India.
For further information please contact:
Koovs plc
Mary Turner/Robert Tel: +44 (0)20 7151 0170
Pursell
Peel Hunt LLP
Dan Webster / George Tel: +44 (0) 20 7418 8900
Sellar
Media enquiries:
Headland
Lucy Legh / Rob Walker Tel: +44 (0)20 3805 4822
/ Charlie Twigg
CHAIRMAN'S STATEMENT FOR THE YEAR TO 31 MARCH 2018
Dear Shareholders,
The past financial year has been tough for Koovs and was marked
by a lack of funding. This meant that management had to conserve
the Company's cash resources prudently, thereby reducing marketing
spend, which inevitably had an impact on headline sales.
In response, the Board performed a review of the Company's
operations to identify medium-term objectives to support our future
growth plans. As a result, in March 2018 we took the decision to
reset our objectives and recalibrate our targets to our five-year
plan for growth with a view to securing investment of up to GBP50m
to fund the plan.
There is a clear opportunity to capitalise on the platform we
have built to date to unlock superior shareholder value over the
coming years, and we have been delighted with the reaction from
investors who share our vision.
In the FY19 we have successfully secured funding from a number
of institutional and strategic investors: Future Lifestyle Fashions
Limited ("FLFL"), part of Future Group, India's largest retail
group, and HT Media Limited ("HT Media"), one of India's largest
and most influential media companies and owner of the Hindustan
Times.
The funding puts Koovs back on track. We are now in a position
to refocus on day-to-day operations and deliver on our strategy by
resuming our growth plan over the coming years.
Leading customer engagement and driving high value sales
Despite the reduction in marketing expenditure in FY18, I was
pleased to see the strength and resilience of the Koovs brand shine
through. Brand awareness continued to grow and we maintained our
leadership position for customer experience and engagement,
becoming one of Asia's most trusted brands in the process.
During FY18 the retail market in India was recovering from the
impact of earlier demonetisation and adapting to the introduction
of GST, the new national sales tax introduced in July 2017, with
many online retailers and marketplaces discounting deeply to clear
legacy stocks. In this climate, I am pleased that Koovs
purposefully followed a different strategy to focus on driving
higher value sales, operational efficiency and customer
satisfaction rather than volume, supporting our position as an
exciting, aspirational and trusted brand.
This strategy has meant that Koovs was able to make progress on
its position as the leading online western fashion brand for
India's 20-somethings. With an increased focus on our product
margins, I am extremely pleased with our business performance in
significantly increasing our trading margin from 4% to 14%,
reducing losses by 22%, further growing brand awareness to 21% and
consistently getting the highest Net Promoter Scores (according to
Redseer) in our category, outperforming other platforms on product
variety and quality. Our marketing focus on social media, exclusive
content and smart partnerships with media and iconic and
up-and-coming Indian stars, has proved highly cost effective and
established Koovs as the leader in customer engagement - with 2.4m
followers and more than three times the engagement of our nearest
competitor on Facebook. This performance is testament to the hard
work and efforts of the entire Koovs team.
Strengthening the Board and management team
During the year we also strengthened our team in the UK with the
addition of Samantha Chilton as Head of Design, Lauren Pool as Head
of Creative, bolstering Koovs' senior team experience, which now
stands at a combined 125 years of fashion, technology and
e-commerce expertise. We have also welcomed Nina Amin, former Head
of Asian Markets at KPMG, to the Board as a Non-executive director
and Chairman of the Audit Committee. Nina replaced Robert Bready
who stepped down in the period, and I would like to thank Robert
for the tremendous contribution he made to the Company since
2012.
Successful fundraising puts Koovs back on track
I firmly believe that our team strength, prudent use of funds,
marketing acumen, and proven operational efficiency and technology
have enabled the Company to achieve significant progress in funding
our new business plan outlined in March 2018. In March 2018, the
Board announced the requirement for an additional GBP50m to fund
the new business plan. Since then, we have raised GBP22.1m
comprising of GBP12m from an over-subscribed equity raise which
included participation from Directors and institutional investors,
immediately followed by a landmark GBP5.8m investment from FLFL and
most recently a GBP4.3m media-for-equity deal from HT Media
Limited. Furthermore, FLFL has also conditionally agreed to make
additional investments to take its ownership up to 29.9%, providing
additional funding of approximately GBP10m., and HT Media have
conditionally committed to an additional GBP12.9m media-for-equity
should it be required by the Company. Combined, this brings the
total funds raised or conditionally agreed to c.GBP45m to support
our future growth plans. With over 400 retail fashion stores across
India, FLFL will be a game-changing partner for Koovs with
synergies across the value chain from manufacturing and
distribution, to marketing and market reach. This new strategic
partnership and investment will bring enormous benefits to our
customers and partners as well as significant value for all
shareholders. With the requisite funding now secured, Koovs is now
back on track, and I am extremely excited about the Company's
growth prospects for the years ahead. I would like to take this
opportunity to thank all our colleagues in the UK and India for
their continuing hard work, dedication and enthusiasm.
[Signature]
Waheed Alli
Chairman
3 September 2018
OPERATING REVIEW
KOOVS is the only online western fashion brand designed in
London specifically for India: Affordable, Aspirational &
Authentic.
The Market
India - Land of Opportunity, "The last big world retail market
to move online "
Hardman & Co, June 2018
As the world's largest democracy, with the highest GDP growth of
any major economy (7% IMF) and 65% of its 1.3bn population under
35, India offers a huge, vibrant pool of young, aspirational and
digitally connected consumers.
With a well-funded Digital India strategy, the Government aims
to have a digital identity and bank account facility for every
citizen and has taken bold financial moves to introduce a national
standardised sales tax (GST), eliminate the black cash economy
(demonetisation) and encourage citizens to transact digitally,
creating an excellent platform for e-commerce growth.
In India, internet penetration has reached 450m people so far
and is expected to pass 50% by 2021 (an estimated 740m). With 300m
people already using smartphones, mobile is a key technology for
getting India online. As the world's largest Facebook community
(241m in July 2017) and the most avid consumers of online video,
the market offers a huge, highly connected and tech-savvy
community.
E-commerce is still in its infancy with just 1% of retail spend
made online, compared to more advanced markets like the UK (17%),
China (16%) and USA (8%). However, despite the relative immaturity
of the market, online retail sales accounted for $18bn in 2017. A
few very large marketplace players like Amazon and Flipkart
currently dominate the e-commerce space but this dominance is an
enabler for smaller, more specialist companies, bringing billions
in investment to develop the market, educate the consumer, build
trust and improve the supporting infrastructure for efficient
e-commerce.
Online fashion punches above its weight, with apparel
contributing $4bn - 22% of the total e-commerce spend, while
clothing is the leading gateway category representing 28% of first
purchases online.
We cannot deny that demonetisation and GST caused a setback for
all retail in India, however the effect was widely recognised as
temporary, with the market now demonstrating significant recovery.
GST will be a boost for online retail, eliminating complexities in
serving customers across different territories and it will provide
a stronger platform for growth and improve the case for investors
to 'play the last big world retail market to move online' (Hardman
& Co June 2018).
Objectives & Strategy
In FY2018 Koovs reviewed our objectives and the market
opportunity in India. This review resulted in a reset of our
five-year strategic business plan to deliver scalable growth and
ultimately better shareholder value. Therefore, FY2018 has required
a strong financial focus with the prudent management of current
spend and in taking our vision and strategy out to investors to
raise funding for the new business plan.
Concurrently, the business has continued to improve efficiency
across all operations, implementing the latest in modular platform
technology, re-siting non-strategic roles closer to operations in
India and hiring new key senior personnel in London with extensive
relevant expertise in design and creative to strengthen the
team.
Funding & Strategic Investors
The recovery in retail and e-tail markets post demonetisation,
along with the return of investor confidence in India as the last
big market to adopt e-commerce, were highly encouraging. Combined
with Koovs continued brand growth, operational readiness and high
customer satisfaction ratings, the market allowed us to review our
plans to capture the online young fashion market in India,
resulting in the Board agreeing a new five-year plan and the
announcement on 1 March 2018 of our intention to raise GBP50m in
new capital.
As described earlier in the Chairman's Statement, the company
has already secured c.GBP22.1m of funding, with a further c.GBP23m
of conditionally agreed commitments. This includes investments from
FLFL and HT Media, both of which will bring extensive opportunities
and synergies for Koovs across media buying, brand exposure, supply
chain, operational efficiency and reach into new regions beyond the
large metros and tier one cities.
About FLFL and Future Group
FLFL operates more than 400 stores with over 6m square feet of
retail space in the Indian fashion industry. It owns and markets 30
fashion brands through exclusive brand outlets, department stores
and multi brand outlets, as well as company-operated chains such as
Central and Brand Factory.
Future Group is among India's leading consumer goods companies
with brands and retail networks in fashion, food and homeware. It
owns over 60 brands, operates close to 2,000 retail stores with
over 22m square feet and annual footfall of over 500m. Future Group
also has one of India's most unique and rapidly-growing digital
payment platforms, Future Pay, which has an active user base of
over 6.5m. Future Group sells c. 300m garments a year, making it
one of the top 10 fashion apparel companies in the world.
Strategic Pillars
Our strategy remains underpinned by four key pillars and we
continue to achieve significant milestones across product
expansion, engagement, brand and extension to new markets.
Amplify Brand
Koovs brand awareness among India's 20-somethings has continued
to increase from 15% in 2017 to 21% in FY2018. This has been
achieved through highly targeted use of social channels and
exclusive digital content, despite significantly reduced marketing
spend.
This focus on customer engagement has established Koovs as
number one for customer experience in online only retail (Forrester
Research November 2017) ahead of Amazon and Flipkart, and
consistently scoring the highest Net Promoter Scores in our
category of online fashion (Redseer Consultancy). Koovs has also
recently been named as One of Asia's Most Trusted Brands by IBC
Corporation's Asia Awards.
Expand Product Range
Design and exclusivity are key to Koovs position as the
authority in affordable, authentic western fashion and the Koovs
Private Label continues to lead in prominence and quality
generating 40% of sales.
Key collaborations launched during the year have included
celebrity and Royal favourite Daniela Helayel in June 2017, a debut
shoe collection from red-carpet experts Gauri & Nainika in
November 2017 and Disney X Koovs collections for both men and women
in April and September 2017 featuring classic Disney characters,
Disney Princesses and Star Wars and Marvel brands. These
collaborations have further established Koovs position as the
affordable lifestyle fashion brand for any occasion.
Engage Content
Koovs social media audience continues to grow, with over 2.4m
followers. During the year Koovs has excelled in engagement with a
series of smart social media events and partnerships to
establishing Koovs as the most effective social brand in our peer
group, scoring engagement at least three times the nearest
competitor.
-- Koovs launched the first Facebook Live fashion style session
in India in April 2017 partnering with digital youth channel Filter
Copy, blogger Sherry Shroff and Bollywood star Neha Sharma. The
Facebook Live event achieved 1.2m live views across multiple
channels.
-- Blockbuster Rom-Com movie Jab Harry Met Sejal partnership
featuring Bollywood superstar Shah Rukh Khan in July 2017 not only
showcased Koovs fashion styles from the film, but also achieved
over 8.5m views on YouTube alone for one of the promotional
videos.
-- In addition, #KoovsLondonDiaries social fashion features with
a competition winner in September 2017 and with film star Rhea
Chakraborty in November 2017 reached over 44m people, engaging
directly with over 2.5m.
Since year end, Koovs has continued to partner with key youth
stars using the social medium as a highly cost-effective marketing
channel through this year. As a result, Koovs social media
excellence has been recognised in August 2018 with a SAMMIE Award
as Best Social Media Brand in Fashion Apparel.
Extend Distribution
The new partnership with recent strategic investor FLFL will
provide Koovs with significant opportunities to expand and
accelerate our reach into new territories within India beyond the
current major metros and tier one cities.
Product
Koovs is now established as the brand for affordable,
aspirational and authentic western fashion for the young,
style-conscious Indian consumer. Koovs Private Label remains the
lead brand on Koovs.com representing 40% of all sales v 60% global
and local brands.
During FY18 Koovs has focused on retaining our reputation for
design-led fashion, with the brand differentiated from
commodity-based online discount marketplaces. By doing this we have
been able to increase product margins significantly from 4% to 14%
and significantly reduced the proportion of stock sold at deeply
discounted prices. We have also focused on a product architecture
with prices ranging from GBP6 to GBP60 per item across entry level,
every day and premium western wear for men and women.
We introduce over 3,000 Private Label options per season, with
50% priced under INR999 (GBP12). Our aim is to further expand
Private Label options and curated brands while continuing to
improve product margins.
Technology
Koovs technology strategy continues to deliver on customer
engagement and satisfaction with the App and website rated top for
'ease of use' by Redseer Consulting in January 2018.
Further deployment of our modular microservices technology
platform is providing the latest cost-effective, environment for
scaling and for rapid development and innovation throughout the
business. It has also been fundamental in cementing our reputation
as the cool and trusted brand with first class customer
experience.
Trading Performance and KPIs
Key Performance Indicators below demonstrate that the business
has achieved some strong metrics during a challenging financial
year post demonetisation.
Koovs decision to focus on quality and customer experience
rather than following the broader online market into deep
discounting, has delivered significantly improved margins, highly
creative and cost-effective use of marketing funds and has
continued to grow brand awareness and customer engagement.
Our overall aim is to increase our share of the youth fashion
market and to do this we will continue to invest in strong,
targeted and efficient marketing campaigns and optimising our
strategic partners.
Over the past year, compared with the previous year, we have
achieved the following:
Definition Year ended Year ended Growth
March 2018 March 2017
------------------
Gross order Value of orders INR1,259m INR1,616m
value* placed / GBP14.8m / GBP18.6m -22% / -21%
------------------- -------------------- -------------------- ------------
Gross order
value less
returns, less INR817m / INR1,086m
Net sales* tax GBP9.6m / GBP12.5m -25% / -23%
------------------- -------------------- -------------------- ------------
Visits to
the site* Website traffic 65.9m 78.5m -16%
------------------- -------------------- -------------------- ------------
% of website
visits that
Conversion* place an order 1.4% 1.6% -14%
------------------- -------------------- -------------------- ------------
Trading margin INR114m / INR43m / +163% /
* See note below GBP1.3m GBP0.5m +168%
------------------- -------------------- -------------------- ------------
Trading margin
as % of net
Trading margin%* sales 14% 4% +244%
------------------- -------------------- -------------------- ------------
Wholesale revenue
Revenue of Koovs plc INR543.2m/GBP6.4m INR760.9m/GBP8.7m -29%/-25%
------------------- -------------------- -------------------- ------------
Loss before
tax Reported loss INR1312.2m/GBP15.3m INR1691.3m/GBP19.3m -22%/-20%
------------------- -------------------- -------------------- ------------
*in relation to the KOOVS.COM website and non-IFRS measures
Note: The group gross margin reported in this financial
information is the margin generated on sales of product to Marble,
the operator of the KOOVS.COM website. Due to foreign direct
investment rules Koovs India cannot currently ship directly to the
end consumer. Trading margin is the implied gross margin that would
be reported in the group's accounts if Koovs India were able to
ship products directly to the end consumer, and is a key
performance indicator of the Company.
To assist UK-based readers of the financial information,
translations into GBP (GBP) have be supplied on a memorandum basis
to allow a clear understanding of the results and financial
position of the business. The memorandum information has not been
audited and does not form part of the financial reporting of the
Group representing, as they do, simple translations of the Rupee
information.
Outlook
The Indian e-commerce market is still largely under-developed
but is considered the last big world retail market to move online.
The opportunity for growth is significant with major global players
like Amazon, eBay and Facebook investing in India as an online
market. With only 1% of retail spend so far made online, but
already accounting for $18bn in 2017 and predicted to reach $58bn
by 2022, fashion punches above its' weight as the proven gateway
category for online and accounts for 22% of all online retail sales
today ($4bn).
The Indian consumer market presents some challenges but is the
fastest growing major world economy and is a digitally-driven
democracy.
Koovs is an established business with robust operations, the
latest scalable technology and an unrivalled management team with
over 125 years combined expertise in fashion, technology and
e-commerce.
In FY19 the focus will be to invest in marketing, growing
product options and customer experience, while improving margins
towards profitability of the company.
With recently secured strategic investment, an established brand
and a reputation for product quality, choice and customer
experience, Koovs is positioned to take the lead in growing the
online western fashion category in India and become the number one
western fashion destination in India by 2020.
Current trading is in line and on target to deliver market
expectations for FY19.
FINANCE REVIEW
The financial results of the Koovs plc Group in this report
cover the year ended 31 March 2018.
The Group's principal activity is that of supplying branded
fashion garments and accessories for sale by a third party through
a branded website principally in the Republic of India.
Financial results
The Group achieved revenue of INR543.2m/GBP6,350k (2017:
INR760.9m/GBP8,680k) during the year from the wholesale of fashion
garments and accessories to its sole customer for onward sale to
consumers. In these early days of development and relatively low
volumes, together with the impact of demonetisation on the market
as a whole, gross margins are low and therefore the Group generated
a gross loss of INR147.0m/GBP1,718k (2017:
INR294.0m/GBP3,354k).
Overhead costs comprise the costs of the design and
merchandising team in the UK, the creative, content, marketing and
IT teams in India, infrastructure costs, marketing expenditure and
corporate costs. Altogether this amounted to INR1,100.0m/GBP12,857k
(2017: INR1,425.3m/GBP16,258k) during the year to give an operating
loss of INR1,247.0m/GBP14,575k (2017: INR1,719.3m/GBP19,612k).
Interest income arising mainly in India amounted to
INR18.8m/GBP220k (2017: INR34.5m/GBP394k) to give a loss before tax
of INR1,312.2m/GBP15,337k (2017: INR1,691.3m/GBP19,293k).
Taxation
Due to the losses generated in the period, and the likelihood
that it will be some time before tax losses can be utilised, no
deferred tax has been accounted for and therefore there is no tax
charge or credit in the current or prior period. Indian Goods and
Services Tax (GST) legislation and its application allow any
unutilised input credits to be carried forward for an indefinite
period and on a transferable basis. As such, to the extent this
legislation remains as enacted and applied, any unutilised GST
input credits are recognised as an asset in full in the
consolidated statement of financial position.
Loss for the period
The loss for the period was INR1,312.2m/GBP15,337k (2017:
INR1,691.3mn/GBP19,293k). The Indian ecommerce market is still in a
nascent stage with only 18m out of 430m internet users regularly
purchasing online. The current scale of the business means that
minimum order quantities for manufactures are in excess of what is
required. This together with the impact of demonetisation led to
high levels of discounting creating a gross margin loss. Operating
costs include INR667.4m/GBP7,797k of marketing expenses, which
increased Koovs brand awareness from 15% to 21% during the
financial year.
Basic earnings per share
Earnings per share amounted to a loss of 7.5 rupees/8.3 pence
per share based on the loss attributable to equity holders of
INR1,312.2m/GBP15,337k and weighted shares in issue of 175,383,691.
The loss per share in the previous period was 11.20 rupees/ 12.77
pence based on the weighted shares in issue of 148,479,033.
Cash flow and funds
During the year to 31 March 2018 the Group utilised
INR1,191.2m/GBP13,922k (2017: INR2,232.6m/GBP25,468k) in operations
mainly funding the operating losses of INR1,312.2m/GBP15,337k.
Operating and investing activities utilised a total of
INR962.1m/GBP11,244k.
Financing activities in the year, primarily through the issue of
convertible debt, raised INR813.4m/GBP8,900k.
As a result of these movements, the net decrease in cash and
cash equivalents was INR146.8m/GBP1,716k (2017: net increase of
INR51.6m/GBP794.9k). The closing net cash and cash equivalents was
INR34.5m/GBP377k (2017: INR151.8m/GBP1871k).
Taken along with the bank deposits the Group had access to
INR252.9m/GBP2,766k (2017: INR606.0m/GBP7,471k) at the end of the
financial period as described in Note 6.
Financial position
At the end of the financial period the net assets of the Group
amounted to INR716.2m/GBP7,837k (2017: INR1,828.8m/GBP22,545k).
This included INR621.2m/GBP6,797k of goodwill arising from the
acquisition of Koovs India. Further information on the funding
position of the Group is given in the Directors' Report and in the
next section of this report.
Principal risks and uncertainties
There are a number of market and business risks that could
affect the Company and the Group. We set out below the Group's view
of the main risks which, should any materialise, could materially
adversely affect the Group's business, financial condition and
returns to shareholders. Further risks and uncertainties which are
not presently known to the Directors at the date of this document,
or that the Directors currently deem less significant, may also
have an adverse effect on the business, financial condition or
results of the Group.
Funding
The Group's business plan envisages a period of investment in
marketing and product in order to grow the business to significant
scale over the next three years and through to profitability.
In August 2017, INR813m/GBP8.9m of funding was raised through
the issue of convertible bonds (note 19). In March 2018 the Board
announced the requirement for an additional INR4,570m/GBP50m. By
the date of this report a total funding of GBP22.1m has been
raised. GBP12.0m from investors and directors; GBP5.8m through a
strategic investment from Future Lifestyle Fashion Ltd, part of the
Future Group, a major retailer in the Indian market FLFL; and
GBP4.3m through a media for equity deal from HT Media Ltd, part of
the Hindustan Times group of companies, a major media company in
India. Future Lifestyle Fashion Ltd FLFL has indicated they intend
to increase their shareholding to 29.9%, providing additional
funding of approximately GBP10m. HT Media Ltd have conditionally
agreed to provide an additional GBP12.9m of equity for media to be
drawn down in tranches when required by the Company.
The Board is confident that any additional funding required will
be secured in due course.
Market and Economic Risks
Economic outlook
The Group's revenue is dependent on the sales by Koovs India to
Marble which, in turn, is dependent on the retail sales Marble
achieves, so the Group is sensitive to the impacts of the general
economic climate in India and on the population's propensity to
spend on fashion clothing and accessories. Global economic factors
may impact the costs of inputs such as cotton and fuel and the
Group's ability to pass on such cost increases may be limited. The
Board monitors projections for the Indian economy on a regular
basis and amends plans based on the expected growth.
Market and competition
The retail fashion industry and market is subject to changing
customer tastes. The Group's performance is dependent upon
effectively predicting and quickly responding to changing consumer
demands and translating market trends into saleable merchandise.
Internet fashion retailing is global and highly competitive. Any
failure by KOOVS.COM to compete effectively with bricks and mortar
retailers and other internet retailers may affect the Group's
revenue. The Group uses third parties to provide assessments of the
developments of fashion in the global markets and designers attend
international trade shows to provide direction and inspiration.
Suppliers
The Group makes arrangements with manufacturers for the supply
of products designed by the Group. The ability to source products
promptly at competitive prices and at appropriate quality is key to
the success of the business and while there is a broad range of
potential suppliers and well-developed competition in the market,
the Group is dependent on being able to find appropriate
manufacturing capability for its products in order to meet
delivery, quality and price expectations. The Group uses a broad
range of suppliers within the Indian market and also
internationally and ensures that there is no concentration of
supply. The employment of experienced sourcing experts ensures
access to a broad range of manufacturing capability.
Foreign country and political risk
Most of the Group's personnel, operations and other assets
including Koovs India's warehouse, all inventory and computer
servers are located in India and, consequently, the Group is
subject to changes in regulations or market conditions in that
country. With the majority of operations located in India, local
management maintain close monitoring of local developments and
amend plans as necessary.
Financial risks
Interest rate risk
The Group's exposure to interest rate risk arises from the
fluctuations in the 3-month sterling LIBOR rate impacting the
interest payable on the Convertible Loan Notes and rate of interest
income or charges on cash and cash equivalent balances. In the
period under review, the Group has operated in a net cash position.
UK interest rates continue to be very low and therefore the
potential adverse interest rate risk in the UK is very low.
Interest rates in India are in the region of 6.0% and the majority
of the Group's cash is held in Indian Rupees in India. There is
therefore a potential adverse interest rate risk affecting the
interest income generated in India. No interest rate hedging is in
place. The bank deposits are made for a variety of tenures to
balance liquidity and security of interest generation.
Currency risk
The Group operates in the United Kingdom and India. Following
the acquisition of Koovs India, all revenues and the majority of
costs are denominated in Indian Rupees. However, around 40% of the
Group's overheads are incurred in Sterling and therefore the Group
results are susceptible to fluctuations as a result of changes in
exchange rates. No foreign currency hedging is in place to mitigate
this risk.
Credit and customer risk
The Group's revenues arise predominately from invoices for goods
to a single customer. As Marble is currently the only channel
through which Koovs India's products are sold to consumers, the
Group's revenue is dependent upon the relationship with Marble and
upon the success of Marble in servicing its customers, delivering
products as promised, recovering payment from its customers and
maintaining high levels of customer service. The Group has
considered the credit risk associated with the customer and has
assessed the credit worthiness of the customer to be good. The
Group minimises the risk through a requirement for prompt, monthly
payment of invoices issued to which the customer is committed and
has demonstrated consistent adherence.
Liquidity risk
Liquidity risk is managed through the assessment of short,
medium and long-term cash flow forecasts to ensure the adequacy of
funding in order to meet the Group's working capital requirements.
Where a shortfall in funding is identified the company will look to
meet this shortfall though a variety of funding options including
but not limited to the issuing of new equity and convertible
debt.
Other risks
Technological risks
The Group is dependent on its IT infrastructure and any system
performance issues (for example system or infrastructure failure,
damage or denial of access) could seriously affect our ability to
trade. The infrastructure has been designed specifically for
robustness, flexibility and scalability and these objectives form a
core part of the IT development strategy.
Warehouse disruption
Any disruption to the Group's warehousing facility due to
physical property damage, breakdown in warehouse systems, capacity
shortages or poor logistics management could lead to significant
operational difficulties in order fulfilment, which may have a
consequent adverse effect on the Group's business. The Group has
recruited an experienced logistics manager to oversee these
operations.
Intellectual property and content liability
The business of the Group carries with it the risk of
intellectual property right infringement. The Group may need to
engage in litigation to enforce its intellectual property rights,
or to protect itself from third party claims. Our designers are
professionally trained to ensure that intellectual property rights
are appropriately handled. Competitors' products are regularly
monitored and any infringement brought to managements'
attention.
Key personnel
The Group depends on the services of its key technical,
marketing and management personnel. The Group personnel structure
is being developed as the business grows to provide appropriate
quality, depth of experience and succession planning.
On behalf of the Board of Directors.
Mary Turner Robert Pursell
Director Director
3 September 2018 3 September 2018
Consolidated Statement of Profit and Loss
MEMORANDUM
Notes Year to Year to Year to Year to
31 March 31 March 31 March 31 March
2018 2017 2018 2017
INR million INR million GBP000 GBP000
Revenue 3 543.2 760.9 6,350 8,680
Cost of sales (690.2) (1,054.9) (8,068) (12,034)
------------------- ----------------- --------------- ---------------
Gross loss (147.0) (294.0) (1,718) (3,354)
Operating expenses (1,100.0) (1,425.3) (12,857) (16,258)
Operating loss 4 (1,247.0) (1,719.3) (14,575) (19,612)
Finance income 18.8 34.5 220 394
Finance expense (84.0) (6.5) (982) (75)
Loss for the year
before tax (1,312.2) (1,691.3) (15,337) (19,293)
Tax expense - - - -
Loss for the year (1,312.2) (1,691.3) (15,337) (19,293)
------------------- ----------------- --------------- ---------------
Loss attributable
to:
Equity holders of
the Company (1,312.2) (1,662.5) (15,337) (18,965)
Non-controlling interests - (28.8) - (328)
------------------- ----------------- --------------- ---------------
Loss for the year (1,312.2) (1,691.3) (15,337) (19,293)
------------------- ----------------- --------------- ---------------
Loss per share
Basic and diluted
loss per share 5 INR(7.5) INR(11.2) (8.3)p (12.8)p
--------------- ---------------
All results relate to continuing operations.
Consolidated Statement of Comprehensive Income
MEMORANDUM
Year to Year to Year to Year to
31 March 31 March 31 March 31 March
2018 2017 2018 2017
INR million INR million GBP000 GBP000
Loss for the year (1,312.2) (1,691.3) (15,337) (19,293)
----------------------------------- ----------- ----------- --------- ---------
Other comprehensive loss
Items that may be reclassified
to Income Statement in
subsequent periods:
Currency translation differences
from operations denominated
in currencies other than
Rupee - equity holders
of the parent, net of
tax (30.5) (38.3) (356) (437)
Items that will not be
reclassified to Income
Statement in subsequent
periods:
Re-measurement of defined
benefits plan, net of
tax - 0.7 - 8
----------------------------------- ----------- ----------- --------- ---------
Other comprehensive loss,
net of tax (30.5) (37.6) (356) (429)
----------- ----------- --------- ---------
Total comprehensive loss
for the year (1,342.7) (1,728.9) (15,693) (19,722)
----------- ----------- --------- ---------
Total comprehensive loss
attributable to:
Equity holders of the
Company (1,342.7) (1,700.2) (15,693) (19,394)
Non-controlling interests - (28.8) - (328)
----------- ----------- --------- ---------
Total income and expense
recognised in the year (1,342.7) (1,729.0) (15,693) (19,722)
----------- ----------- --------- ---------
All results relate to continuing operations.
Consolidated Statement of Financial Position
MEMORANDUM
31 March 31 March 31 March 31 March
2018 2017 2018 2017
INR million INR million GBP000 GBP000
Non-current assets
Intangible assets 627.5 627.5 6,866 7,736
Property, plant and
equipment 23.8 18.5 260 228
Non-current financial
assets 6.8 8.7 75 107
----------- -----------
Total non-current assets 658.1 654.7 7,201 8,071
----------- ----------- --------------
Current assets
Inventories 140.3 187.9 1,536 2,316
Trade receivables, other
receivables, prepayments
and other assets 632.7 710.8 6,922 8,762
Bank deposits 211.5 445.5 2,314 5,492
Cash and cash equivalents 86.8 200.5 949 2,472
----------- ----------- -------------- --------------
Total current assets 1,071.3 1,544.7 11,721 19,042
----------- ----------- -------------- --------------
Total assets 1,729.4 2,199.4 18,922 27,113
----------- ----------- -------------- --------------
Non-current liabilities
Loans and Borrowings (708.2) - (7,748) -
Other Long-term liabilities (7.9) (11.7) (86) (144)
----------- ----------- -------------- --------------
Total non-current liabilities (716.1) (11.7) (7,834) (144)
Current liabilities
Short-term borrowings (52.2) (48.7) (572) (600)
Trade and other payables (244.9) (310.2) (2,680) (3,824)
----------- ----------- -------------- --------------
Total current liabilities (297.1) (358.9) (3,252) (4,424)
Total liabilities (1,013.2) (370.6) (11,085) (4,568)
NET ASSETS 716.2 1,828.8 7,837 22,545
Capital and reserves
Equity share capital 168.0 168.0 1,838 2,071
Share premium reserve 6,196.6 6,196.5 67,799 76,388
Convertible debt option
reserve 180.5 - 1,975 -
Other reserves 11.2 (7.8) 123 (97)
----------- ----------- -------------- --------------
Retained earnings (5,840.1) (4,527.9) (63,898) (55,817)
----------- ----------- -------------- --------------
Non-controlling interest - - - -
----------- ----------- -------------- --------------
TOTAL EQUITY 716.2 1,828.8 7,837 22,545
----------- ----------- -------------- --------------
Consolidated Statement of Changes in Equity
Attributable to the equity holders of the
parent
-------------------------------------------------------------------------------------------------------
Convertible Share
Equity Share debt based Currency Total Non-controlling
share premium option payment translation other Retained interests Total
capital reserve reserve reserve reserve reserves earnings Total Equity
INRm INRm INRm INRm INRm INRm INRm INRm INRm INRm
------------------ -------------- -------------- -------------
At 31 March
2016 44.9 2,768.4 - 7.1 (8.7) (1.6) (1,978.0) 833.7 10.5 844.2
------------------ ------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
Loss for the
year - - - - - - (1,662.5) (1,662.5) (28.8) (1,691.3)
Other
comprehensive
(loss)/income - - - - (38.3) (38.3) 0.7 (37.6) - (37.6)
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
Total
comprehensive
loss - - - - (38.3) (38.3) (1,661.8) (1,700.1) (28.8) (1,728.9)
Equity issue 123.2 3,500.8 - - - - - 3,624.0 - 3,624.0
Costs of equity
issue - (72.7) - - - - - (72.7) - (72.7)
Change in
non-controlling
interest - - - - - - (888.0) (888.0) 18.3 (869.7)
Share based
payments
reserve - - - 31.8 0.2 32.0 - 32.0 - 32.0
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
At 31 March
2017 168.0 6,196.6 - 38.9 (46.8) (7.9) (4,527.8) 1,828.8 - 1,828.8
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
Loss for
the year - - - - - - (1,312.2) (1,312.2) - (1,312.2)
Other
comprehensive
loss - - - - (30.5) (30.5) - (30.5) - (30.5)
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
Total
comprehensive
loss - - - - - (30.5) (1,312.2) (1,342.7) - (1,342.7)
Share based
payments
reserve - - - 49.5 - 49.5 - 49.5 - 49.5
Convertible
debt option
reserve - - 180.5 - - 180.5 - 180.5 - 180.5
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
At 31 March
2018 168.0 6,196.6 180.5 88.4 (77.3) 191.6 (5,840.0) 716.2 - 716.2
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
Memorandum GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
At 31 March
2018 1,838 67,799 1,975 968 (845) 2,098 (63,898) 7,837 - 7,837
------------------ ------------- --------------- -------------- -------------- ------------- --------------- ---------- ---------- ---------------- ----------
Consolidated Statement of Cash Flows
MEMORANDUM
Year to Year to Year to Year to
31 March 31 March 31 March 31 March
2018 2017 2018 2017
INR million INR million GBP000 GBP000
Operating activities
Loss for the year (1,312.2) (1,691.3) (15,337) (19,293)
Adjustments to reconcile
profit for the year to
net cash flow from operating
activities
Depreciation and amortisation 11.3 11.8 132 135
Share based payment 52.9 34.4 619 392
Bad debt expense/credit 13.6 (0.7) 159 (8)
Interest income and finance
expense 65.2 (28.0) 762 (320)
Working capital adjustments:
Decrease in inventories 47.6 87.5 556 998
Decrease/(increase) in
trade and other receivables 78.1 (648.3) 913 (7,395)
(Decrease)/increase in
trade and other payables (147.7) 2.0 (1,726) 23
------------------- ----------- --------- ---------
Net cash outflow from
operating activities (1,191.2) (2,232.6) (13,922) (25,468)
------------------- ----------- --------- ---------
Investing activities
Acquisition of shares
in subsidiary - (869.8) - (9,921)
Withdrawal: original
maturity greater than
12m (3.8) 1.5 (44) 15
Deposits: original maturity
less than 12m 234.0 (340.3) 2,735 (3,882)
Purchase of non-current
assets (19.9) (9.6) (233) (109)
Proceeds from sale of - - - -
plant and equipment
Interest income received 18.8 34.5 220 394
------------------- -----------
Net cash flow generated
from/(used in) investing
activities 229.1 (1,183.7) 2,678 (13,503)
------------------- ----------- ---------
Financing activities
Proceeds from issue of
shares - 3,624.0 - 41,340
Costs of share issues - (72.7) - (830)
Proceeds from issue Convertible
Loan Notes 813.4 - 9,507 -
Increase/(repayment)
of short-term borrowings 3.5 (76.9) 41 (877)
Interest and finance
expense (1.6) (6.5) (19) (75)
---------
Net cash flow generated
from financing activities 815.3 3,467.9 9,529 39,558
------------------- ----------- --------- ---------
Net (decrease)/increase
in cash and cash equivalents (146.8) 51.6 (1,715) 794.9
Cash and cash equivalents
at start of period 151.8 127.6 1,774 1,456
Exchange differences 29.5 (27.4) 345 (312)
------------------- ----------- --------- ---------
Cash and cash equivalents
at end of period 34.5 151.8 404 1,939
------------------- ----------- --------- ---------
NOTES
1. Basis of preparation
The financial information set out in this document does not
constitute the Company's statutory accounts for the years ended 31
March 2017 or 31 March 2018. Statutory accounts for the years ended
31 March 2017 and 31 March 2018, which were approved by the
directors on 3 September 2018, have been reported on by the
Independent Auditors. The auditors' reports on the accounts for 31
March 2018 and the year ended 31 March 2017 were unqualified, and
did not contain a statement under 498(2) or 498(3) of the Companies
Act 2006 but for the year ended 31 March 2017 drew attention to an
emphasis of matter due to the uncertainty over going concern.
Further details on Going Concern are included in note 2 below.
Statutory accounts for the year ended 31 March 2017 have been
delivered to the Registrar of Companies. The statutory accounts for
the year ended 31 March 2018 will be delivered to the Registrar of
Companies in due course and will be available from the Company's
registered office at 23 Kingsway, London, WC2B 6UJ and from the
Company's website www.koovs.com/corporate.
The financial information of the Group is presented in the
Indian Rupee (INR), and all values are rounded to the nearest
100,000 Rupees (INR 0.1 million) except when otherwise indicated.
The financial information of the Company is presented in Pounds
Sterling (GBP/GBP) the functional currency of the Company and are
rounded to the nearest thousand pounds (GBP000). To assist UK-based
readers of the financial statements, translations into Pounds
Sterling have be supplied on a memorandum basis to allow a clear
understanding of the results and financial position of the
business. The memorandum information has not been audited and does
not form part of the financial reporting of the Group representing,
as they do, simple translations of the Indian Rupee
information.
The financial information set out in these preliminary results
has been prepared using the recognition and measurement principles
of International Accounting Standards, International Financial
Reporting Standards and Interpretations adopted for use in the
European Union (collectively Adopted IFRSs). The accounting
policies adopted in these results have been consistently applied to
all the years presented and are consistent with the policies used
in the preparation of the statutory accounts for the period ended
31 March 2017. The principal accounting policies adopted are
unchanged from those used in the preparation of the statutory
accounts for the period ended 31 March 2017. New standards,
amendments and interpretations to existing standards, which have
been adopted by the Group have not been listed, since they have no
material impact on the financial statements.
2. Going Concern
These financial statements have been prepared on the assumption
that the business is a going concern.
The Board has identified that approximately INR 4,570m/GBP50m of
additional funding would be required over 3 years. The Board and
its advisors have therefore been engaged in a staged capital
raising process which, by the date of this report, has secured
additional funding as follows:
-- GBP5.8m strategic investment from Future Lifestyle Fashions
Limited (FLFL) for 57,876,600 new ordinary shares at a price of 10p
per share, representing 24.8 per cent of the share capital at the
time of issue.
-- GBP17.1m of media for equity with Hindustan Times (HT) with
the initial tranche of GBP4.3m at a price of 10p per share.
-- GBP12m at a price of 15p per new ordinary share from
investors and directors, including GBP1.5m committed for investment
by Lord Alli.
-- c. GBP10m of additional investment at a price of 15p per
share agreed in principle by FLFL to increase their shareholding to
29.9 per cent of the enlarged share capital, noting this has not
been included in concluding the going concern assumption.
With the existing funding received the Group has cash resources
to support operations for a minimum of 12 months from the date of
approval of financial statements, supporting the going concern
assumption.
3. Revenue
Revenue recognised in the Income Statement is analysed as
follows:
MEMORANDUM
2018 2017 2018 2017
INRm INRm GBP000 GBP000
Sale of fashion garments,
India 512.5 760.9 5,990 8,680
Sale of fashion garments,
UK 30.7 - 360 -
------ ------ ------- -------
The Group's sole operation was that of supplying fashion
garments at wholesale to third parties.
Operating segment
95% (2017: 100%) of the Group's revenue is generated by Koovs
India through its operations as a supplier of branded fashion
products. The chief operating decision maker is the Chief Executive
Office who makes resource allocation decisions based on financial
statements and operating reports for the entire Group. The Group
therefore represents a single cash generating unit and a single
operating segment.
Information about major customers
95% of the revenue reported arises from the sale of fashion
garments to Marble Pvt. Ltd.
4. Operating loss
Operating loss is stated after charging:
MEMORANDUM
2018 2017 2018 2017
INR m INR m GBP000 GBP000
Auditor's remuneration
Parent 7.0 9.9 82 113
Auditor's remuneration
Subsidiary 2.3 2.2 26 24
Operating lease payments 27.5 70.6 322 806
Depreciation expense 10.5 10.4 124 119
Amortisation expense 0.7 1.4 8 16
Staff costs 337.2 387.5 3,941 4,420
Net foreign currency exchange
loss 0.3 0.3 3 4
Marketing cost 667.4 1,118.1 7,797 12,749
Inventory provision charge 8.8 (37.4) 103 (426)
------- ------- ------ ------
All operating expenses are administrative by nature.
5. Earnings per share
Basic earnings per share is calculated by dividing the earnings
attributable to the owners of the Parent Company by the weighted
average number of ordinary shares in issue during the period.
2018 2017
Weighted average shares in issue for
basic earnings per share 175,383,691 148,479,033
Effect of dilutive options - -
------------ -----------
Weighted average shares in issue for
diluted earnings per share 175,383,691 148,479,033
------------ -----------
Earnings attributable to the owners
of the Parent (INR m) (1,312.2) (1,662.5)
------------ -----------
Basic and diluted loss per share -
Rupees (7.5) (11.2)
Basic and diluted loss per share -
Pence (8.3) (12.8)
-------------------------------------- ------------ -----------
Diluted earnings per share is calculated by dividing the
earnings attributable to the owners of the Parent Company by the
weighted average number of ordinary shares in issue during the
period, adjusted for the effects of potentially dilutive share
options. The effect of the share options in issue is anti-dilutive
and therefore no adjustment has been made to the weighted average
shares in issue for diluted earnings per share.
6. Cash and bank deposits
MEMORANDUM
Group 2018 2017 2018 2017
INRm INRm GBP000 GBP000
Current assets:
Bank deposits with an original
maturity of more than 12
months 1.0 1.0 11 12
Bank deposits with an original
maturity of not more than
12 months 210.5 444.5 2,303 5,480
Cash at bank and in hand 86.8 200.5 949 2,472
------- ------- ------- -------
Total 298.3 646.0 3,263 7,964
Non-current assets:
Security deposits 6.8 8.7 75 107
------- ------- ------- -------
Bank overdrafts (52.2) (48.7) (572) (600)
Total cash and bank deposits 252.9 606.0 2,766 7,471
------- ------- -------
2018 2017 2018 2017
Cash and cash equivalents INRm INRm GBP000 GBP000
Cash at bank and in hand 86.8 200.5 949 2,472
Bank overdrafts (52.2) (48.7) (572) (600)
------- ------- ------- -------
Total 34.6 151.8 377 1,871
------- ------- ------- -------
Cash and cash equivalents comprise cash in hand and cash held in
bank accounts from which deposits can be drawn without any
substantial delay and which have not been deposited under any
agreement for a fixed term, net of any bank overdrafts which are
utilised for operational cash flow purposes.
7. Events after the reporting date
Issued Shares
At a Board meeting held on 13 July 2018 and subsequently at a
General Meeting of the Company held on the 1 August the directors
and shareholders approved the issue of further ordinary shares in
order to provide funding for the Group's business plan.
Subsequently the following shares were issued.
Shares Issue Proceeds Nominal Share premium
price value
GBP 000 GBP 000 GBP 000
13 July 2018 57,876,600 10p 5,788 579 5,209
1 August 2018 80,000,002 15p 12,000 800 11,200
Total GBP 137,876,602 17,788 1,379 16,409
------------ --------- -------- --------------
Total, INR million 1,625.8 126.0 1,499.8
--------- -------- --------------
Also approved by shareholders at the EGM on 1 August was the
authority for the Company to issue
- 42,000,000 shares to HT Media for Tranche 1 of the GBP16.8m
media for Equity deal
- Up to 42,000,000 shares to HT Media for Tranche 2 of the
GBP16.8m media for Equity deal
Share Options
On the 18 July 2018 the Board granted options over ordinary
shares of GBP0.01 each to the following directors:
Mary Turner, Chief Executive Officer 12,783,322 Ordinary Shares
Gail Rebuck, Non-Executive Director 639,166 Ordinary Shares
Emily Sheffield, Non-Executive Director 639,166 Ordinary Shares
Nina Amin, Non-Executive Director 639,166 Ordinary Shares
Robert Pursell, Chief Financial Officer 3,835,000 Ordinary Shares
These share options were awarded with an exercise price of 17.7
pence per Ordinary Share, being the closing price on the 16 July
2018, and will vest on 17 July 2021 subject to continued employment
with the Company.
8. Cautionary Statement
Koovs plc has made forward-looking statements in this press
release, including statements about the market for and benefits of
its products and services; financial results; product development
plans; the potential benefits of business relationships with third
parties and business strategies. These statements about future
events are subject to risks and uncertainties that could cause
Koovs plc's actual results to differ materially from those that
might be inferred from the forward-looking statements, Koovs plc
can make no assurance that any forward-looking statements will
prove correct.
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
FR SSIFWDFASEIU
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