Trading Update

 

TIDMADIL 
 
RNS Number : 9368D 
Adili PLC 
10 December 2009 
 

AIM: ADIL10 December 2009 
 
 
Adili plc 
("Adili" or "the Company") 
 
 
Trading Update 
 
 
 
 
The board of Adili plc, the online retailer of ethical fashion, announces that 
trading has improved significantly over the last few weeks but to date is below 
management's expectations at the time of the last fundraising in August this 
year. 
 
 
The company has suffered from lower than anticipated trading on their website 
mainly due to issues arising from the trading name change to Ascension in the 
earlier part of the Autumn Winter season and also as a result of the later than 
planned opening of the retail stores following the protracted fundraising 
activity earlier in the year, delaying our ability to commit to leases at that 
time. 
 
 
The board has been acutely focussed on margin management and this season has 
seen significantly less discounting than in previous years, including the 
avoidance of a mid-season Sale.  Consequently, cash generation and margin growth 
are the main priorities for management rather than 'headline' sales growth. 
The board is now seeing an acceleration in sales growth of both the website and 
the stores due to seasonality and having resolved the issues associated with the 
rebranding referred to above.  The rebranding has been received very well by 
customers, with 75% of existing customers preferring the name Ascension. 
 
 
The overall sell through rate on fashion product lines are far better than ever 
experienced previously in the company's history.  The mix of own label product 
has also significantly increased year on year and continues to be core to our 
strategy. The board is particularly pleased with both customer and press 
reaction to this season's collection. 
 
 
The retail stores since opening have traded above target to date and the board 
see significant opportunity to drive the London store to higher levels of 
performance and consequently materially affect the trading performance of the 
business in the second half.  This will also help us drive increased volumes of 
own label with consequent margin benefit. The Dorchester store plays a key role 
in clearing terminal stock, reducing the need for the significant stock write 
offs seen in previous seasons. 
The board anticipates a need for a modest amount of further working capital 
funding in February / March 2010. The board is exploring various options for 
financing this additional requirement without recourse to shareholders, but 
cannot rule this option out at this stage. 
 
 
The Company will issue a further update in early January 2010 
 
 
Enquiries: 
 
 
 
 
+----------------------------+--------------------------+------------------+ 
| Adili plc                  | Adam Smith, Chief        | T: 01258 837 437 | 
|                            | Executive Officer        |                  | 
|                            | Nick Samuel, Chairman    |                  | 
+----------------------------+--------------------------+------------------+ 
|                            |                          |                  | 
+----------------------------+--------------------------+------------------+ 
| Seymour Pierce             | Nicola Marrin            | T: 020 7107 8000 | 
|                            | Catherine Leftley        |                  | 
+----------------------------+--------------------------+------------------+ 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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