InnovaDerma PLC Trading update (2463B)

TIDMIDP

RNS Number : 2463B

InnovaDerma PLC

03 April 2017

InnovaDerma PLC

("InnovaDerma", the "Company" or the "Group")

Trading update and new e-tailer distributors signed

InnovaDerma (LSE: IDP), a UK developer of life sciences, beauty and personal care products today provides an update on trading and announces it has secured new e-tailer distribution deals.

The Board is pleased to announce that the revenue growth achieved in the first half of the year has significantly accelerated in the second half of FY2017. Trading in Q3 has been very robust with January and March achieving the highest-ever monthly revenues and subsequently delivering the highest ever quarterly revenues.

The strong performance has been driven by the Company's Direct to Consumer ('DTC') digital channel which is performing exceptionally well compared to the same period in the previous year. Skinny Tan's performance in Superdrug has been outstanding and the Board is very pleased to announce the brand has become the No.1 selling brand in Superdrug by revenue in its category for 2017, despite only being granted increased shelf space from mid-February onwards.

The Group's free cash flow generation and balance sheet remains strong.

E-tailers

InnovaDerma secured the distribution of Skinny Tan with the following e-tailers in March:

   --     Feelunique, one of Europe's largest online beauty retailers 

-- Lookfantastic.com, Europe's No.1 retailer for beauty which attracts half a million unique visitors a month

The Company has opened up new markets especially in continental Europe for its fast-growing Skinny Tan brand through securing e-tailers which offer European and Worldwide delivery. The Company expects to secure further e-tailers in the last quarter of FY 2017.

Operational activities

As indicated in the Company's interim results on 9 February 2017, the Board stated its intention to capitalise on the lucrative professional spray tanning market through Skinny Tan Professional Range. The Company has in place significant new stock to cater for strong demand from professional tanning and beauty salons. Over the last few weeks, the Company has trained more than 300 professional tanners to use Skinny Tan Professional Solutions and has begun to supply professional stock.

North America is performing as expected and the Company's DTC digital channel is contributing strongly to its performance.

On 27 February 2017, the Company acquired men's skincare brand Charles + Lee and makeup brand Stevie K Cosmetics. The Company will launch Charles + Lee in Australia through its DTC platform in the first week of April and will roll out its products internationally during the course of this year and the next.

Stevie K Cosmetics' product range has been extended significantly post-acquisition through new product development and product extensions and this is expected to be launched in July 2017 in UK and Australia and in the international markets in the following quarter.

Haris Chaudhry, Executive Chairman of InnovaDerma said:

"We are very excited to report a strong trading performance supported by our multi-disciplinary and growing DTC platform, fast-increasing product range and Skinny Tan achieving the No.1 selling brand in Superdrug in its category for 2017. As we build a sizeable stable of premium and highly differentiated brands with international appeal, we are being sought after by market leading e-tailers and distributors which provides us with significant opportunities to expand further our geographical reach and customer base. We are thrilled by our positive progress, growth prospects, and look to the future with confidence."

Further enquiries:

 
 InnovaDerma 
  Haris Chaudhry/Joe Bayer      [phone] 
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 Sole broker 
  Hybridan LLP 
  Claire Noyce                  [phone] 
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 Cardew Group 
  Shan Shan Willenbrock 
  David Roach                   + 44 (0)20 7930 0777 
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About InnovaDerma:

InnovaDerma PLC (LSE: IDP) specializes in the research, manufacture and marketing of clinically proven products in life sciences, beauty and personal care products. InnovaDerma has presence in the UK, US, Australia, New Zealand, Philippines, South Africa, Hong Kong and South Korea.

www.innovaderma.com

This information is provided by RNS

The company news service from the London Stock Exchange

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April 03, 2017 02:00 ET (06:00 GMT)