21st Jan 2021 11:15
(Alliance News) - eve Sleep PLC said Thursday it exited 2020 in "far better shape" than it entered the year.
eve reported an increase in revenue and earnings for 2020, though noted that the availability of raw materials and component supply remains an industry issue and a "potential limiting factor on near term growth".
Shares in the online mattresses seller were down 13% in London on Thursday at 5.00 pence each.
In 2020, revenue increased 6% to GBP25.2 million from GBP23.8 million, driven by 18% growth in the second half, and narrowed its earnings before interest, taxes, depreciation and amortization loss to GBP2.0 million from a loss of GBP10.7 million in 2019.
"The focus and driver of the results this year has been the UK business, with the French business being at an earlier stage in its development," eve said.
eve said it maintained its "tight control" of overheads and a continued focus on improving marketing efficiency and effectiveness, on a marketing budget, which was 51% lower year-on-year.
It added: "The business has undoubtedly benefitted from the accelerated shift to e-commerce and the current strength of the homewares category as a result of the pandemic. A focus on strengthening and widening the product set, with new sleep wellness products including a weighted blanket and the introduction of a sleep gifts range has also given broader brand presence."
Turning to the new year, eve said its trading has "started well", following the same positive trends seen in the last few months of 2020, but noted some slowing of deliveries.
"At this time the company has not experienced any material cost-duty increases as a direct result of Brexit, though there has been some slowing of the pace of deliveries to Ireland and Northern Ireland resulting from courier related issues. eve will continue to closely monitor the situation but does not expect any material full year impact at this time," eve added.
The firm said it will be moving from its rebuild strategy, which started in the second half of 2018, to focus on growth opportunities in the UK.
Chief Executive Cheryl Calverley said: "Our business reset is largely complete and our growth has accelerated more quickly than we initially anticipated as a result of the shift to online and the current strength of the homewares market.
"We have exceeded our financial expectations for 2020, which were raised twice during the year, extended our product ranges, opened new sales channels, increased brand awareness, presence and recognition, with the winning of the Which? awards, and improved the strength and resilience of our technology, logistics and operations platforms."
By Paul McGowan; [email protected]
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