Eve Sleep's 130pc growth better than its wildest dreams

Strong trading momentum witnessed in the first half carried over into the second half of Eve Sleep's trading year, with the mattress maker's revenues expected to grow roughly 130% year-on-year.

Eve pointed to "stronger than expected" trading, both in the UK and abroad, with Britain anticipated to be up 105% over the same period a year earlier, while international sales gained more than 180% year-on-year.

The firm said on Tuesday that its marketing strategy had been a "great success" in driving sales, with marketing costs as a percentage of revenue having fallen every month over the last quarter.

Although an online direct retailer, its exclusive agreement with German department store Karstadt was said to be "progressing to plan" with Eve products available in 79 stores across the country, taking its products available into 146 locations, including its agreements with Next, Debenhams and Fenwicks.

Jas Bagniewski, chief executive officer, said, "We continue to be in a period of acceleration with strong momentum across our 15 territories."

"Eve is making good progress towards its objective of achieving UK profitability in Q4 2018, demonstrated by the UK business now anticipated to report a maiden profit after marketing costs in Q4 this year, a significant improvement on the first half of the year," Bagniewski added.

On Wednesday, analysts at Berenberg advised investors not to sleep on Eve, initiating coverage on the firm with a 'buy' rating and a target price of 140p, as it said Eve had "several characteristics" of a successful disruptor, highlighting the likelihood of profitability within the next twelve months.

The research note read, "We acknowledge the risks in such an early-stage business, but also believe that eve can continue to deliver triple-digit revenue growth over the coming years, culminating in significant profitability in the medium term."

As of 0745 GMT, Eve Sleep had gained 8.99% to 97.00p.