Koovs PLC Trading Statement (2490J)

TIDMKOOV

RNS Number : 2490J

Koovs PLC

02 April 2015

2 April 2015

Trading Update

Koovs plc ("Koovs" or the "Company")

Koovs plc (AIM:KOOV), the fashion-forward business focused on the young Indian e-commerce market, today announces a trading update for the year ended 31 March 2015.

Highlights

 
                                         Year to         Year to 
                                   31 March 2015   31 March 2014   Growth 
 
 Expected Koovs.com 
  net sales(1)         GBP000              2,650             720    +268% 
 
 Visits to website     Millions             20.9             7.6    +175% 
 
   --      Strong sales growth at Koovs.com has continued as the brand strengthens. 
   --      Excellent progress across the five strategic objectives set out at the IPO: 

- Fashion credibility established with over 3000 styles in 22 fashion trends designed in our London studio

- International brands featured on the site extended from 30 to 70

- High profile design collaborations continued with three launched including Henry Holland and Mawi jewellery

- Price and delivery promise: achieved lower pricing on private label and faster delivery times

- Technology: launched apps and a mobile-enhanced site to support the rapid growth in access from mobile devices

-- Management expects the cost of marketing in the year to 31 March 2015 to be 210 million rupees (GBP2.1m) higher than originally anticipated, at approximately 320 million rupees (GBP3.2m). We now expect these higher costs to continue, reflecting the rapid rate of growth in the Indian e-commerce market which is expected to grow from $2.3 billion to $32 billion over the next five years(2) .

   --      Net cash in the Koovs group of GBP12m at the year end. 

-- Recognising the exceptional opportunity, the Board will be seeking additional funding in due course to accelerate development.

Commenting on the announcement Waheed Alli, Chairman, said:

"We are pleased with the progress made in our first year. By any standards we have delivered exceptional growth as we continue to strengthen our fashion-forward credentials in India. We have great product, at the right price, presented in a fashion-credible environment and this is resonating with consumers.

"We want to build on the momentum achieved so far and seize the opportunity available to us. The marketing costs are higher than we had anticipated reflecting the pace of growth in the Indian economy. We will therefore seek further funding in due course to realise the potential of the business and the market."

Results for the year to 31 March 2015 will be announced on 2 July 2015.

1. Sterling equivalent at constant exchange rates of sales made through the Koovs.com website including taxes, net of returns. This does not represent the revenue of the Koovs plc group.

2. Source: Technopak

 
 For further information, please contact: 
 Koovs plc                       Tel: [phone] 
  Roy Naismith 
 Peel Hunt LLP 
 Dan Webster / Richard Brown     Tel: [phone] 
  Jock Maxwell Macdonald (ECM) 
 Brunswick Group LLP 
 Nick Claydon /Natalia Dyett/    Tel: [phone] 
  Rebecca Lum 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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