19th Jul 2021 11:33
(Alliance News) - Ready meal firm Parsley Box Group PLC on Monday reported strong first-half growth driven by repeat purchases and increasing average order values.
The Edinburgh-based company expects to report first half revenue of over GBP14 million, an increase of 26% over GBP11.1 million in the same period in 2020 and many times the GBP2.7 million equivalent in 2019.
Growth was driven by increasing customer numbers, up 78% year-on-year to 177,000 at the end of June. Repeat customers rose 38% compared to a year prior, although new customers were down 17% as shopping behaviours began to normalise due to the gradual easing of lockdowns.
Parley Box markets its ready meals to the "baby boomer" generation, born after the World War Two and broadly defined as those aged 60 and over.
However, Parsley Box anticipates that the trend of consumers returning to only shopping in-store will be short term and is "confident that the accelerated shift in consumer behaviour towards a direct-to-consumer model is permanent".
Looking ahead, Parsley Box expects second half revenue growth to be substantially ahead of its first half, partly driven by progress in the average size of repeat orders.
"The continued growth delivered in the first half of the financial year driven by strong growth in repeat orders has continued our positive momentum and is very encouraging," said Chief Executive Kevin Dorren.
"We look forward to delivering the first phase of our product innovation pipeline in the second half of the year."
Parsley Box floated on London's AIM market back in March, raising GBP17 million in the process. Following the IPO fundraise, the company had GBP6.5 million in cash and no outstanding debt at the end of June, its said on Monday.
Shares in Parsley Box were down 17% in London morning trading at 140.00 pence.
By Will Paige; [email protected]
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