29th Oct 2019 09:23
(Alliance News) - Koovs PLC on Tuesday reported a continuation of strong trading momentum in the second quarter of financial 2020 and said that it is working towards securing a previously announced GBP6.8 million investment from a major shareholder.
Koovs shares were up 9.3% at 3.31 pence each in London in morning trade.
The India-focused online fashion retailer said gross order value doubled year-on-year in the three months to September 30 to GBP5 million from GBP2.5 million, with trading margin rising to 12% from 7%.
Second quarter website traffic jumped 69% to 27.3 million visits and conversion rates rose to 1.3% from 1.1%.
"The second quarter of the current financial year has seen a continuation of the strong growth in website traffic and gross order value. This represents the completion of three consecutive quarters of growth in our key performance metrics set out above and is a clear indication of the strength of the Koovs' underlying business model," Koovs said.
Koovs also said that it is working with Future Lifestyle Fashions Ltd - part of Indian retail giant Future Group - to secured the GBP6.8 million investment.
FLFL - which currently holds a 26% stake in Koovs - has already invested GBP250,000 of this total for 881,523 shares at 28.36 pence each, which will convert to ordinary shares in June 2020. The capital infusion was paused after the Reserve Bank of India asked FLFL to reapply for approval before any further subscriptions are made.
"The company is working with FLFL to secure the committed investment, alongside considering other fundraising options available to the Company, in the event the RBI approval process is not completed within the coming weeks," Koovs said.
The company separately has decided to pursue cash savings measures, primarily in relation to reducing stock purchases and marketing spend, to ensure "maximum time available for the various options available to the company to be considered".
By Tapan Panchal; [email protected]
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