Esr 2022 Share Discussion Threads

[david gruen] 16/7/2021 07:04

16/07/2021 7:00am
UK Regulatory (RNS & others)

Eve Sleep plc (EVE)
Eve Sleep plc: Trading Update
16-Jul-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Trading update

13% sales growth in H1, on-course for full year expectations

eve Sleep ("eve", the "Company), the direct to consumer sleep wellness brand operating in the UK, Ireland (together "UK
&I") and France announces a trading update for the six months ended 30 June 2021.

Financial highlights

? Group revenue increased 13% to GBP13.9m (2020: GBP12.2m)
? UK&I revenues increased year-on-year by 18%
? French revenues decreased year-on-year by 8%, as a result of minimal marketing investment in Q1 ahead of the new TV
campaign
? Increase in average order values has largely offset intake pricing pressures
? Group marketing contribution and EBITDA losses in line with management's expectations.
? Closing net cash at 30 June 2021 of GBP5.2m (31 December 2020: GBP8.4m) includes GBP0.7m for increased stock holding,
repayment of GBP0.3m VAT deferred from Q1 2020 and a seasonal working capital outflow.

Strategic and operational highlights

? Launch of major, new French TV campaign 'La vie en jaune' from May
? Further product expansion beyond mattresses including new bed frames, YinYang duvet, bamboo linen bedding, Morphee
sleep aid and launch of Sleep Away 'sleepovers' range
? Agreed CBD licensing deal to go live in September as part of product expansion into sleep wellness
? Increased investment in stock to strengthen business resilience and meet peaks in demand
? Appointment of Mike Lloyd as Chairman and Masood Choudhry as Non-Executive Director


Good first half performance

The UK&I market had a good first half with revenue growth of 18%, notwithstanding more challenging comparatives in the
second quarter. Compared with pre pandemic revenues in H1 2019, UK&I sales were 15% higher. Growth was primarily
online, with a softer performance from retail partners, reflecting lock down restrictions over the first quarter and to
some extent the permanence of channel shift to ecommerce.

Demand was particularly strong for eve's hybrid mattress range and premium bed frames, with accessories such as the
morphee sleep aid and the weighted blanket, and add-ons such as the temperature balancing protector driving materially
higher basket values. eve continues to benefit from the Which? survey which rated eve's original and its premium hybrid
the two best mattresses in the UK, and que choisir which ranks the premium hybrid as the best mattress in France. UK
marketing investment was front half weighted, increasing to 29% of revenue (2020 H1: 27%) as a result of increased TV
advertising, setting up a strong brand position for trading in the second half of the year.

In France the majority of the first half of the year was spent preparing for the launch of the new marketing campaign -
'La vie en jaune', which began in May. Ahead of the new campaign, marketing spend was minimal, resulting in revenues
for the period marginally lower year-on-year at GBP2.2m. Investment in French marketing is first half weighted,
reflecting upfront development costs and was approximately GBP1m in the period. The financial payback on this investment
is expected in the second half of the year and over 2022. Early indications from June suggest that the marketing
campaign has been well received, with a strong increase in online traffic.

Second half outlook
Whilst visibility on UK trading conditions for the second half of the year remains limited, the economic recovery looks
to be gaining momentum, underpinned by ongoing strength in consumer spending, including on the home. Consumer
confidence continues to strengthen and personal savings remain at elevated levels, with fears of mass unemployment
abating. These positive demand factors bode well for the retail sector and eve, and as yet the business has seen no
signs of a return to pre pandemic shopping behavior, suggesting the online momentum continues. However, the future path
of the pandemic is unclear and the risk of further shocks and disruption to the economic recovery remains.
As previously set-out in eve's final results on 18 March 2021 there has been some industry supply challenges around raw
material inflation and componentry shortages. As expected at the time of the results these pressures have since abated
to some degree, and in terms of componentry issues, eve has managed this through the investment in additional stock to
ensure customers receive a first-rate service. There may well be further disruption and inflationary pressures,
dependent on how the pandemic continues to affect global supply chains.
Management anticipate second half revenues in line with expectations and minimal cash outflows.

The Company plans to publish its interim results on 23 September 2021.

Cheryl Calverley, CEO of eve Sleep commented:

"First half revenue growth of 13% is a pleasing result, and in line with our expectations. Our UK business is up 15% on
pre pandemic revenue levels reported in H1 of 2019. The balance across sales channels has shifted somewhat, but the
overall business is in good health. The start of our investment programme in France has been very encouraging, and we
look forward to seeing this campaign power our business performance over the next two years, replicating the progress
we have seen in the UK.

Maintaining excellent customer service in the face of fluctuating demand and supply chain challenges has been a core
focus for us, and the decisions we have taken to improve the resilience of our business through increasing our stock
holding and investing in our operational and people capability have undoubtedly underpinned the good H1 performance. We
enter the second half of the year with confidence."

[bad robot] 15/7/2021 15:45

THE MINUTE THE NONCE CAME AND SAID BUY. BR hammered it immediately.

I knew that Nonce was squealing. So the Nonce dailyrentaboy will go back to his daddy for more of his daddy's milk.
The Nonce dailyrentaboy been impaled here for 4-5 months and was losing 40%.


Liquidate the Nonce, and children will be safe, as IT would not have money to hunt in Cambodia.
BR
IN BR WE TRUST
RED MERCURY CREW.
NB
Daar, was you not in Mos?

[jungmana] 15/7/2021 14:52

Sit tight. An excellent chance of a 10 bagger from here within 18 months

[ewanwhose] 15/7/2021 13:58

Hopefully any bad or mediocre news is well priced in at these levels to allow a good bounce in the morning.

[daar] 15/7/2021 13:17

No insider knowledge in public domain imo hence no volume at all. News must be good tomorrow for a rerate back to 10p plus

[bad robot] 15/7/2021 13:01

Ending in tears for the Nonce dailyrentaboy. The Nonce has been squealing when this pig went to 3.5p and BR liquidated IT.

BR has an order for 10m shares at 0.5p. Waiting patiently.


Hope this helps

BR
IN BR WE TRUST
RED MERCURY CREW.

[bad robot] 15/7/2021 12:02

The Nonce dailyrentaboy says to average down and EVE goes down. Gullible Nonce putting his trade at 5.8p when B.R. was shorting at 8.0p

B.R.'s crew want this Nonce to die.

BR
IN BR WE TRUST
RED MERCURY CREW.

N.B
OMG

NONCEY26 has been the kiss of death for many shares, a good customer of "the One".
Mind you, DailyRentaBoy is a mega jinx for all claims.

[neo26] 15/7/2021 11:45

GbotHow old are you?At least 10 years i have known you to post this same filth...

[bad robot] 15/7/2021 10:56

DEARY ME

DAILYRENTABOY BOUGHT AT 5.8P, AND BR WAS SHORTING IT TILL 3.5P and bought all his share. I knew this Nonce was squealing. My Crew has liquidated that Mongish Nonce many, many times.

DailyRENTABOY has been a nonce for decades; he started with daddy was making him eat his meat.

DailyRentaboy has been averaging, and the Nonce is so worried he had to go back to munching his dad meat again for £1 per hour


BR
IN BR WE TRUST
RED MERCURY CREW

[dailylarma] 15/7/2021 08:54

Time to buy in.Especially now that the nonce bad robot has been liquidated

[neo26] 15/7/2021 08:22

Gonna be good day today

[daar] 15/7/2021 08:02

No sign of big trades meaning no insider knowledge, bodes well for a recovery to 10p and above

[neo26] 14/7/2021 14:08

Mm playin about.

[jungmana] 14/7/2021 14:06

Buyers are taking the opportunity now :-)

[neo26] 14/7/2021 13:59

Im still in.. lol

[jungmana] 14/7/2021 13:54

Lol don't chicken out now. All signs and last update points to a a strong h1 trading

[neo26] 14/7/2021 13:44

With no interest and tu on a friday im putting 2+2 together and making 10.Im bit nervous with eve now

[jungmana] 14/7/2021 13:29

I agree, in general markets been poor for a while. Look at some of my other holdings arb, piri and gun. Been sliding since April.
I hope the trading update gives us a massive boost towards a more decent level.

[neo26] 14/7/2021 12:47

Last 2 days been slow,

[glavey] 14/7/2021 06:51

Is "micro fluctuations" the PC name for bed bugs now?

[stevex1] 13/7/2021 11:46

I find EVE fascinating as a Market disruptor, but after listening to Phil Krim, the founder of Casper hxxps://www.npr.org/2021/06/23/1009551702/casper-philip-krim , and he came across as a Snake Oil Salesman, it leaves me in doubt about the long term viability of this business model.

[david gruen] 13/7/2021 06:42

Don't worry about the micro fluctuations. This is re-rating. Close your eyes and come back in 6 months. You might just have landed your first 10 bagger.

[glavey] 13/7/2021 05:05

Those bed bugs are little suckers.