19th Sep 2018 09:56
LONDON (Alliance News) - InnovaDerma PLC said Wednesday that it expects strong earnings growth in new financial year as it reported a drop in 2018 financial year profit due to new investments.
Shares in the beauty and personal care products developer were trading up 6.5% at 178.90 pence each.
For the year ended June 30, Innovaderma posted pretax profit of GBP669,064, down from GBP1 million a year ago. The profit drop was due to "one-off" investments, the company said, adding that it remains confident for the future.
"Stock availability issues for Roots, (the company's haircare range) which have since been resolved, and lower than expected revenue out of the US in June, also contributed to the lower than expected profit versus the original forecast," InnovaDerma explained.
Meanwhile, annual revenue increased 21% to GBP10.7 million from GBP8.9 million, boosted by InnovaDerma's direct to consumer channel which delivered a "record number of orders" in the second half of the year.
Chairman Haris Chaudhry said: "I am pleased to report this has been a year of significant progress and achievement with our brands delivering revenue growth as they penetrate new geographical markets and distributors."
"The company is trading in line with expectations post year end and is well positioned for future revenue and profit growth from our stable of strong brands."
In a separate release, InnovaDerma said that its flagship self-tanning brand Skinny Tan will be sold in 1,250 Boots stores and online from 2019.
Skinny Tan will also continued to be sold in Superdrug stores.
"Together with Superdrug, the Skinny Tan portfolio will now be ranged in more than 2,000 stores in the UK. This significant increase in our distribution reach gives us confidence in the further growth of the brand as we continue to innovate and deploy a comprehensive range of product extensions and sub brands in this new financial year," Chaudhry added.
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