Eve to refocus as profits jump but short of high expectations

Online mattress retailer Eve Sleep on Thursday reported that first half revenues and profits leapt as the company focused its efforts on the UK, Ireland and France.

For the first six-months of the year the company achieved revenues of £18.8m, an increase of 63% over the same point the previous year, while gross profit jumped by 47% to £10.2m as trading in the first half of the year in UK&I and France saw year-on-year revenue growth of 64% and 53% respectively.

The company has now focused its attention on pushing its leading online ‘bed in a box’ position in France and UK&I after growth in other European areas grew at a slower rate than targeted.

Paul Pindar, chairman of Eve, said: "While there is much to be proud of in our first half results, with sales growth of 63%, our group results fell short of our own high expectations. We have however taken swift and decisive action, including re-focusing on fewer core markets where we have a leading position and significant growth potential, which has enabled us to reduce costs substantially."

The firm also launched a 193 store partnership with Dreams in the UK, which is exceeding expectations since its launch in July, and a partnership of 24 stores in France with leading homewares retailer BUT.

The AIM-traded company, which had cash and cash equivalents of £16.7m, down 20.5% from the same point last year, appointed former Moonpig managing director James Sturrock as chief executive on 10 September. Said Pindar: "As you would expect from a new CEO, James is conducting his own strategic and financial review of the business and I have no doubt given his experience and capabilities, more improvements will be forthcoming."

Eve's shares were up almost 3% at 18.2p by Thursday afternoon.