Mattress retailer eve Sleep (EVE) launched less than three years ago and listed on the alternative market in May. Up until now the group’s focus has been on establishing itself as a leader in the mattress market in the UK and Europe. Its efforts have delivered big increases in revenue, but investment to expand the business weighed heavily on first-half earnings. Even including IPO costs and other one-offs, the period's adjusted cash loss was £6.9m for the first six months of 2017, from £3.2m a year earlier.
Now, the company is looking to make its name known in the 'sleep' market – which also includes bed sheets, pillows, furniture and bath textiles – and has expanded its product offering from four to 10 at the period-end, and more since. Management is focused on using every distribution channel as a means of building brand awareness. Eve Sleep has online partnerships with Amazon and Tesco, and high street partnerships with retailers such as Debenhams, Next and German retailer Karstadt. Once all of these arrangements are 'live' it will operate in 146 stores in the UK and Germany.
International expansion has been accelerating, with European revenue almost quadrupling year on year to £4.7m. The UK business now accounts for 55 per cent of total sales, down from 59 per cent in last year's first half.
Analysts at Peel Hunt are forecasting an adjusted pre-tax loss of £13.1m in the year to December, giving a loss per share of 9.4p in 2017 (from losses of £10.7m and 7.8p in 2016).
| EVE SLEEP (EVE) | ||||
| ORD PRICE: | 82p | MARKET VALUE: | £113m | |
| TOUCH: | 80-83p | 12-MONTH HIGH: | 106p | LOW: 80.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 25p | NET CASH: | £37.2m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 5.1 | -3.2 | -131 | nil |
| 2017 | 11.5 | -9.1 | -6.53 | nil |
| % change | +125 | - | - | - |
| Ex-div: | na | |||
| Payment: | na |
