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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Esr 2022 Plc | LSE:EVE | London | Ordinary Share | GB00BYWMFT51 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.525 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Dow Jones received a payment from EQS/DGAP to publish this press release.
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Eve Sleep plc (EVE)
Eve Sleep plc: Interim Results
20-Sep-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
20 September 2018
eve Sleep plc
Interim Results
Refocused strategy, core markets delivering, gaining market share
eve Sleep plc ("eve", "Company" or the "Group"), the direct to consumer European
sleep brand, today announces its interim results for the six months ended 30 June
2018.
Financial highlights
GBPm1 H1-18 H1-17 Movement
Revenue 18.8 11.5 +63%
Gross profit 10.2 7.0 +47%
Gross profit margin 54.4% 60.4% (600bps)
Adjusted EBITDA loss2 (11.9) (6.9) (5.0)
Statutory loss before tax (12.0) (9.1) (2.9)
Net cash 16.7 37.2 (20.5)
Business highlights
· Group sales up 63% year-on-year (200bps higher than guided in the trading
update on 2 July 2018)
· UK and Ireland ("UK&I") sales broadly in line with initial expectations at 64%
growth year-on-year
· Group gross margin remains strong at 54%, with reduction due to growth of
non-mattress products
· Marketing efficiency in UK&I continues to improve alongside investment in brand
building
· Launch of 24 store retail partnership in France from June with leading
homewares retailer BUT
· New mattress range (the "hybrid" / the "light") launched across UK and France
· Maintained rating of "excellent" from Trustpilot, scoring 9.5 from over 2,400
customer reviews
Post period end
· Operations refocused on the core markets of UK&I and France to capitalise on
eve's leading online (bed in a box) position in these markets; activity in all
other markets currently withdrawn
· Cost savings plan initiated with savings targeted across marketing and
overheads as a result of the refocus on core territories
· Anticipated restructuring costs of approximately GBP0.8m for the year
· Appointment of James Sturrock, ex Moonpig MD, as CEO from 10 September 2018
· Dreams partnership launched in July 2018 across 193 stores and currently
trading ahead of original expectations
· Unprompted UK brand awareness increased from 7.6% at June 2018 to 11.2% at
August
· eve is now the 5th most well-known mattress brand in the UK
· Trading in core markets in the first two months of H2 2018 increased
year-on-year by c.40%
Commenting on the results Paul Pindar, Chairman said:
"While there is much to be proud of in our first half results, with sales growth of
63%, our group results fell short of our own high expectations. We have however
taken swift and decisive action, including re-focusing on fewer core markets where
we have a leading position and significant growth potential, which has enabled us
to reduce costs substantially.
As you would expect from a new CEO, James is conducting his own strategic and
financial review of the business and I have no doubt given his experience and
capabilities, more improvements will be forthcoming. The market opportunity remains
undiminished and eve, as the most well-known direct to consumer sleep brand,
continues to win market share."
The Company will be holding an analyst meeting at 9:00am today. For further details
please contact Guy Scarborough at Instinctif Partners
Guy.Scarborough@instinctif.com.
Enquiries:
eve Sleep plc via Instinctif Partners
Abid Ismail, Chief Financial Officer
Peel Hunt LLP +44 (0) 20 7418 8900
Dan Webster
George Sellar
Guy Pengelley
Instinctif Partners +44 (0) 20 7457 2020
Mark Reed
Guy Scarborough
About eve Sleep
eve is an e-commerce focused, direct to consumer European sleep brand, which
designs and sells eve-branded mattresses and other sleep products, including
pillows, sheets and duvets. The Company principally focuses on the design,
branding, marketing and selling of its products, with other aspects of its
operations, including manufacturing and fulfilment, being outsourced. eve's aim is
to become the leading sleep brand in Europe.
Summary
The Group achieved revenue growth of 63% for the six months ended 30 June 2018,
which by most standards would be viewed as a very good result, given the
challenging retail backdrop. However, the performance fell considerably short of
eve's own expectations and those of the market. The shortfall was primarily due to
over expanding into too many countries too quickly, without the necessary financial
resources and management bandwidth to sustain the growth.
Trading in the first half of the year in UK&I and France, saw year-on-year revenue
growth of 64% and 53% respectively. The UK&I was broadly in line with original
expectations. France is at an earlier stage of maturity than originally anticipated
however eve was still the leading online "bed in a box" operator in H1 2018 based
on Google search trends and independent unprompted brand awareness results. Whilst
other European territories delivered growth of 95% year-on-year, this was at a much
lower marketing and overhead efficiency than targeted, thus the Board took swift
and effective action to refocus H2 2018 efforts on UK&I and France where eve
already has a commanding brand position.
There was considerable progress made in the first half of the year on many of the
key drivers of the business. Non-mattress revenues grew 168% year-on-year to GBP3.2m,
increasing their contribution to Group revenues from 10% in H1 2017 to 17% in H1
2018. eve launched several new products in the period including the hybrid
mattress, the light mattress and colour options for its bed frames, taking the
total product range to 15 at 30 June 2018.
The growth in the product range is also driving increased customer loyalty, which
is important given the long mattress purchasing cycle. The percentage of repeat
orders through the website grew from 11.9% in H1 2017 to 13.5% in H1 2018 in the
UK&I, and in France increased from 9.6% to 13.4%.
eve is first and foremost a direct to consumer business, using omni-channel in a
supporting role to drive brand awareness and attract the customer segment, which
still prefers to shop offline. Significant progress was made in the period with
retail partnerships, including the signing of leading French homewares retailer BUT
in France, to cover 24 stores. The Group's largest partnership to date was signed
shortly after the period end with Dreams to cover 193 UK stores, with the rollout
completed in July 2018.
One of the key drivers of the eve business is marketing, which is used to drive
both near-term sales and build a long-term brand. In the UK&I there has been good
progress in building brand awareness and improving marketing efficiency in the
period. Marketing efficiency is measured through reviewing cost per acquisition
("CPA") and marketing spend as a percentage of revenues ("M/R"). In UK&I,
year-on-year CPA improved by GBP56 to GBP154 (H1 2017: GBP210) and M/R improved by
1210bps to 52.0% (H1 2017: 64.1%). At the same time unprompted brand awareness in
the UK&I has increased to 7.6% as at June 2018 (June 2017: 4.1%) and at the most
recent tracking in August 2018 improved further to 11.2%, making eve the fifth most
recognised bed brand in the UK. France is at an earlier stage in its development
therefore it is yet to reach the necessary scale to drive marketing efficiency,
however this tracks the UK&I's performance at the comparable period of development.
France's brand recognition is growing strongly reaching 5% by August 2018, up from
just 3% a year earlier (source: YouGov brand tracker August 17, August 18). Total
Group marketing costs for the period were GBP12.3m (H1 2017: GBP8.0m).
The Group reported a 47% increase in gross profit to GBP10.2m for the half. The
underlying group gross profit margin in the half was a healthy 54.4% (H1 2017:
57.0%). The 260 bps reduction in gross margin primarily reflects a mix shift with
the strong growth of lower margin non-mattress products.
UK&I contribution after marketing but before overheads ("Contribution") was broadly
flat at a GBP0.7m loss (H1 2017: GBP0.7m loss) making it close to break-even at this
level, with the revenue growth and marketing efficiencies netted off by the impact
on gross margin of non-mattress products and omni-channel. France reported a
Contribution loss of GBP1.7m (H2 2017: GBP0.7m loss) reflecting the increased
investment in H1 2018 to build the eve brand. The Group reported an adjusted H1
2018 EBITDA loss of GBP11.9m (H1 2017: GBP6.9m loss).
During what has been a busy period for the Group product quality and customer
experience have both remained strong. The Group's returns rate has continued to see
significant reductions, falling from 13% in H1 2017 to 11% in H1 2018. Equally
customer feedback remains highly positive with a rating of "excellent" and an
average score of 9.5 from more than 2,400 Trustpilot reviews as at September 2018.
Closing cash for the period was GBP16.9m.
Outlook
Following the trading update and announcement of the departure of CEO Jas
Bagniewski, published on 2 July 2018, the Group has taken decisive action including
undergoing a comprehensive review of the business led by CFO and interim CEO Abid
Ismail. The review has concluded that, at least for now, eve should focus on the
core territories of the UK&I and France. As a result, the Company has currently
withdrawn activity from all other European territories.
As part of this refocus, marketing and overhead savings are planned for H2 2018 and
the Company has also reduced headcount by approximately 20%. A one-off
restructuring cost of circa. GBP0.8m is also expected for 2018 as a whole.
Notwithstanding the level of change in the business since the period end, trading
in the last two months combined has been good with Group revenues up c.40%
year-on-year. Trading in July in the core markets of the UK&I and France was
strong, and the second highest revenue month this year, while August was competing
with tough comparatives, reflecting the launch last year of the Sleep Rich TV
advertising campaign.
With the appointment of new CEO James Sturrock from 10 September, a new TV
advertising campaign expected to launch later in the autumn and further product
launches planned for Q4 2018, eve is confident in building further on the strong
platform developed in H1 2018 in its core markets of UK&I and France.
Market overview
The European mattress market continues to present a significant growth opportunity.
The total market is estimated to be worth approximately GBP6bn (source: Euromonitor,
eve estimates) with UK&I and France combined, accounting for approximately 50% of
the total market.
Following decades of little change in the mattress market, the shift to online
purchase of mattress and related products is beginning to accelerate. The broader
furniture market, in which eve operates, has historically been one of the slowest
to transition to online purchase, in part because of a lack of innovation by the
main operators and in part because of consumer caution towards purchasing big
ticket items online, unseen and untouched. However, this is now changing. It is
forecast that the online furniture market will be the second fastest growing retail
market between 2017 and 2022, with forecast growth of 55%.
eve has structured its customer proposition and business model in a way to maximise
the opportunity from the shift to online purchase. The customer proposition has
been simplified and accelerated, including next day delivery, and crucially eve
offers customers a 100-day home trial in order to overcome any perceived hurdles to
online purchase.
Refocused growth strategy
There are now three pillars to the Company's growth strategy to build on its strong
base in the UK&I and France:
1. Positioning - Build on eve's No.1 online mattress position in the UK&I and
France
2. Product - Increase focus on the successful investment in mattress and
non-mattress range
3. Experience - Use omni-channel approach to further invest in customer experience
1. Positioning
eve's trading momentum has been principally delivered through effective marketing
to further build brand position and awareness. In terms of unprompted brand
awareness, eve is the most well-known "bed in a box" brand in the UK and France
(source: Populus Omnibus August 2018 and YouGov brand tracker). It has now become
the 5th most well-known mattress brand in the UK (August 2017: 7th) and the 8th
most well-known in France (August 2017: 9th). eve is also the most searched for
"bed in a box" brand in the UK and France (source: Google Trends Index, 1st Jan -
30th June 2018).
Through driving greater marketing efficiencies, it is anticipated that the average
cost of acquiring customers will continue its downward trend seen in the UK&I, with
France, which is at an earlier stage in its development, anticipated to see a
similar trend in due course.
As part of the Company's refocused strategy and building on the learnings from H1
2017, eve will be launching new TV creative and combined offline and online
campaigns in Autumn 2018.
2. Product
eve has continued to expand its mattress and non-mattress product range, developing
and launching new products in the first half of the year both across the mattress
and non-mattress range. The "hybrid" mattress, launched in May 2018, accounted for
c.25% of total mattress units sold through the UK website in July and August. eve's
high quality mattress product range consists of three mattress types (the
"original", the "hybrid" and the "light") and a baby cot mattress. The non-mattress
product range consist of pillows, a mattress topper, bedframes, protector and the
accompanying home textiles including eve-branded sheets and duvet.
The benefits of this product expansion can be seen from the growth in non-mattress
sales which have increased by 168% in H1 2018 and now make-up 17% of total Group
revenue, compared to 10% in H1 2017.
The Company is planning to further expand its mattress and bed frame ranges in Q4
2018.
3. Experience
Direct to consumer remains the focus for the Company and continues to represent the
largest revenue stream. However, eve's omni-channel initiatives and retail
partnerships also demonstrated good growth and help drive increased brand
awareness. Retail partnerships complement eve's direct to consumer focus providing
a physical touchpoint for customers that prefer to purchase through the traditional
format, while avoiding the costs of an expensive retail estate. They also typically
have a lower returns rate. In the UK, eve currently benefits from offline
partnerships with Debenhams, Fenwick and Next Home and online retailers including
Amazon, Tesco and Wayfair.
In July 2018, eve launched its "eve X Dreams" partnership with leading UK
specialist bed retailer Dreams. The partnership, a first for Dreams with a mattress
in a box brand, enabled the eve mattress to be sold in 193 Dreams stores and
through its website.
In France, eve is currently partnered with leading furniture retailer BUT, with eve
products available in 24 of its 330 stores across the country with the scope to
expand in due course.
eve's total retail presence across UK&I and France now stands at 284 stores.
The Company's continued focus on improving its customer service and proposition is
generating good results with the percentage of repeat orders through the website
increasing to 13.5% in the UK&I (H1 2017: 11.9%) and 13.4% in France (H1 2017:
9.6%). Group return rates have also continued to decline to 11% (H1 2017: 13%)
which management believes to be a normalised level.
Footnotes
1) Financial data has been rounded for presentation purposes. As a result of this
rounding the totals, comparatives and calculations presented in this document may
vary slightly from the arithmetic totals or calculations using such data
2) Adjusted EBITDA is calculated before IPO related costs (H1-17: GBP1.8m, H1-18:
GBP0.0m) and share based payment charges (H1-17: GBP0.0m, H1-18: GBP0.1m)
Consolidated Income Statement
Note 6 month 6 month period 12 month
period ended ended 30 June period
30 June 2018 2017 ended 30
December
2017
(Unaudited) (Unaudited)
(Audited)
GBPm GBPm GBPm
Revenue 18.8 11.5 27.7
Cost of sales (8.6) (4.6) (11.7)
Gross profit 10.2 7.0 16.0
Distribution (2.3) (1.3) (3.4)
expenses
Administrative (19.9) (12.6) (27.7)
expenses
Operating loss (11.9) (6.9) (15.1)
before IPO
related
expenditure and
share based
payment charge
IPO related - (2.1) (2.1)
expenditure
Share based (0.1) - (1.8)
payment charge
Operating loss (12.0) (9.1) (19.0)
Net finance 0.0 - 0.0
income
Loss before tax (12.0) (9.1) (19.0)
Taxation - - -
Loss for the (12.0) (9.1) (19.0)
period
Basic and diluted 4 (8.66p) (9.46p) (16.17p)
loss per share
Consolidated Balance Sheet
Note At 30 June 2018 At 30 June 2017 At 31
December
2017
(Audited)
(Unaudited) (Unaudited)
GBPm GBPm GBPm
Assets
Non-current
assets
Property, 0.0 0.0 0.0
plant and
equipment
Intangible 0.6 0.0 0.4
assets
Other 0.4 - -
non-current
assets
1.0 0.0 0.4
Current
assets
Inventories 1.0 0.5 0.7
Trade and 2.8 1.5 4.2
other
receivables
Cash and cash 16.7 37.2 26.9
equivalents
20.4 39.1 31.8
Total assets 21.5 39.1 32.2
Current
liabilities
Trade and 5.6 3.4 4.5
other
payables
Provisions 1.0 0.8 0.8
6.6 4.2 5.4
Total 6.6 4.2 5.4
liabilities
Net assets 14.9 35.0 26.8
Equity
attributable
to equity
holders of
the parent
Share capital 5 0.1 0.1 0.1
Share premium 36.7 36.7 36.7
Share based 0.1 - 0.1
payment
reserve
Retained (22.1) (1.9) (10.2)
earnings
Total equity 14.9 35.0 26.8
Consolidated Cash Flow Statement
6 month period ended 6 month 12 month
30 June 2018 period period
ended 30 ended 31
June 2017 December
2017
(Unaudited)
(Audited)
(Unaudited)
GBPm GBPm GBPm
Cash flows from
operating
activities
Operating loss (12.0) (9.1) (19.0)
after taxation
IPO related - 2.1 2.1
expenditure
Operating loss (12.0) (6.9) (16.9)
before IPO related
expenditure
Adjustments for:
Net finance income (0.0) - (0.0)
Depreciation and 0.1 0.0 0.0
amortisation
(Increase)/Decrease 1.2 (0.4) (3.1)
in trade and other
receivables
(Increase)/decrease (0.2) 0.0 (0.2)
in inventories
Increase in trade 1.1 1.2 2.4
and other payables
Increase in 0.1 0.0 0.1
provisions - net
Share based payment 0.1 - 1.8
charge
IPO related - (2.1) (2.1)
expenditure
Net cash outflow (9.7) (8.2) (18.1)
from operating
activities
Development of (0.2) - (0.4)
intangible assets
Acquisition of (0.0) (0.0) (0.0)
property, plant and
equipment
Other non current (0.4) - -
assets
Net cash outflow (0.6) (0.0) (0.4)
from investing
activities
Proceeds from the 0.0 40.8 40.8
issue of share
capital
Net finance income 0.0 - 0.0
Net cash inflow 0.0 40.8 40.8
from financing
activities
Net (10.3) 32.5 22.3
increase/(decrease)
in cash and cash
equivalents
Cash and cash 26.9 4.6 4.6
equivalents at
start of period
Cash and cash 16.7 37.2 26.9
equivalents at end
of period
Consolidated Statement of Changes in Equity
For the period ended 30 June 2018
(Unaudited)
Share Share Share Retained Total
Capital Premium based Earnings Equity
payment
Reserve
GBP GBP GBP GBP GBP
Balance at 1 138,631 36,716,3 138,794 (10,158,736 26,835,0
January 2018 71 ) 60
Exercise of 652 - - - 652
options
Share based - - 78,194 - 78,194
payment charge
Transfer on - - (73,991) 73,991 -
exercise of
options
Transactions 652 - 4,203 73,991 78,846
with owners
Loss for the - - - (12,042,802 (12,042,
year ) 802)
Balance at 30 139,283 36,716,3 142,997 (22,127,547 14,871,1
June 2018 71 ) 04
For the period ended 30 June 2017
(Unaudited)
Share Share Share Retained Total
Capital Premium based Earnings Equity
payment
Reserve
GBP GBP GBP GBP GBP
Balance at 1 316 16,124,9 - (12,838,441 3,286,80
January 2017 28 ) 3
Issue of Shares 38,767 40,698,3 - - 40,737,1
96 63
Bonus share 85,948 (85,948) - - -
issue
Share Premium - (20,038, - 20,038,965 -
Cancellation 965)
Exercise of 13,592 17,952 - - 31,545
options
Transactions 138,307 20,591,4 - 20,038,965 40,768,7
with owners 35 08
Loss for the - - - (9,056,280) (9,056,2
year 80)
Balance at 30 138,623 36,716,3 - (1,855,756) 34,999,2
June 2017 63 31
For the year ended 31 December 2017
(Audited)
Share Share Share Retained Total
Capital Premium based Earnings Equity
payment
Reserve
GBP GBP GBP GBP GBP
Balance at 1 316 16,124,9 - (12,838,441 3,286,80
January 2017 28 ) 3
Issue of Shares 38,767 40,698,3 - - 40,737,1
96 63
Bonus share 85,948 (85,948) - - -
issue
Share Premium - (20,038, - 20,038,965 -
Cancellation 965)
Exercise of 13,600 17,960 - - 31,560
options
Share based - - 1,757,20 - 1,757,20
payment charge 4 4
Transfer on - - (1,618,4 1,618,410 -
exercise of 10)
options
Transactions 138,315 20,591,4 138,794 21,657,375 42,525,9
with owners 43 27
Loss for the - - - (18,977,670 (18,977,
year ) 670)
Balance at 31 138,631 36,716,3 138,794 (10,158,736 26,835,0
December 2017 71 ) 60
Notes to the accounts
1. Basis of preparation
The unaudited interim consolidated statements of eve Sleep plc are for the six
months ended 30 June 2018 and do not comprise statutory accounts within the meaning
of S.434 of the Companies Act 2006. These consolidated financial statements have
been prepared in accordance with the recognition and measurement requirements of
International Financial Reporting Standards, International Accounting Standards and
Interpretations (collectively IFRSs) as adopted by the EU. They do not include all
disclosures that would otherwise be required in a complete set of financial
statements. The consolidated financial statements are presented in Sterling, which
is also the Group's functional currency.
Going concern
The Directors have reviewed current performance and cash flow forecasts, and are
satisfied that the Group's forecasts and projections, taking account of potential
changes in trading performance, show that the Group will be able to operate within
the level of its current facilities for the foreseeable future. The Directors have
therefore continued to adopt the going concern basis in preparing the Group's
financial statements.
Changes to accounting standards
The accounts have been prepared in accordance with accounting policies that are
consistent with the accounts of the year ended 31 December 2017 and that are
expected to be applied in the Report and Accounts of the year ended 31 December
2018.
2. Segmental Analysis
*********************
IFRS 8, "Operating Segments", requires operating segments to be determined based on
the Group's internal reporting to the Chief Operating Decision Maker. The Chief
Operating Decision Maker has been determined to be the executive board and has
determined that the primary segmental reporting format of the Group is geographical
by customer location, based on the Group's management and internal reporting
structure.
The executive board assesses the performance of each segment based on revenue and
gross profit after distribution expenses, which excludes administrative expenses.
For the period 1 January 2018 - 30 June 2018
(Unaudited)
UK&I Rest of Rest of World Total
Europe
GBPm GBPm GBPm GBPm
Revenue 10.3 8.2 0.4 18.8
Cost of sales (4.6) (3.8) (0.2) (8.6)
Gross Profit 5.7 4.4 0.2 10.2
Distribution expenses (0.9) (1.4) (0.0) (2.3)
Segmental Results 4.8 2.9 0.1 7.9
Administrative (19.9)
expenses
IPO related -
expenditure
Share based payment (0.1)
charge
Net finance income 0.0
Loss before tax (12.0)
For the period 1 January 2017 - 30 June 2017
(Unaudited)
UK&I Rest of Rest of World Total
Europe
GBPm GBPm GBPm GBPm
Revenue 6.3 4.7 0.5 11.5
Cost of sales (2.3) (2.2) (0.1) (4.6)
Gross Profit 4.0 2.5 0.4 7.0
Distribution expenses (0.6) (0.7) (0.1) (1.3)
Segmental Results 3.5 1.9 0.3 5.6
Administrative (12.6)
expenses
IPO related (2.1)
expenditure
Share based payment -
charge
Net finance income -
Loss before tax (9.1)
For the year ended 31 December 2017
(Audited)
UK&I Rest of Rest of World Total
Europe
GBPm GBPm GBPm GBPm
Revenue 16.1 10.6 1.0 27.7
Cost of sales (6.6) (4.9) (0.3) (11.7)
Gross Profit 9.6 5.7 0.7 16.0
Distribution expenses (1.4) (1.8) (0.2) (3.4)
Segmental Results 8.2 3.9 0.5 12.6
Administrative (27.7)
expenses
IPO Related (2.1)
Expenditure
Share based payment (1.8)
Charge
Net Finance income 0.0
Loss before tax (19.0)
No analysis of the assets and liabilities of each operating segment is provided to
the Chief Operating Decision Maker in the monthly management accounts. Therefore no
measure of segmental assets or liabilities is disclosed in this note.
Due to the nature of its activities the group is not reliant on any major
customers.
4. Earnings per share
The basic earnings per share is calculated by dividing the net profit attributable
to equity holders of the Group by the weighted average number of ordinary shares in
issue during the year.
30 June 2018 30 June 2017 30 December 2017
(Unaudited) (Unaudited)
(Audited)
Weighted average 139,051,360 95,693,790 117,336,860
shares in issue
Loss attributable to (12,042,802) (9,056,280) (18,977,670)
owners of the parent
company (GBP)
Basic earnings/(loss) (8.66) (9.46) (16.17)
per share (pence)
Diluted (8.66) (9.46) (16.17)
earnings/(loss) per
share (pence)
EPS and diluted EPS are not calculated for each class of share as the shares carry
the same right to share in profit or loss for the year.
During the 6 month period to 30 June 2017 the Company issued bonus shares prior to
its admission to AIM on a 250:1 basis followed by a consolidation of shares. Loss
per share reflects the effect of the bonus issue and is provided in the interests
of further and better disclosure. The number of shares in issue for the previous
period has been stated to reflect the share capital structure following the bonus
issue; this adjustment assumes the total number of bonus shares were in issue
throughout the whole of the period prior to the IPO on 18 May 2017.
For the periods presented the weighted average number of shares used for
calculating the diluted loss per share are identical to those for the basic loss
per share. This is because the outstanding share options would have the effect of
reducing the loss per share and would not be dilutive under IAS 33.
At 30 June 2018, options outstanding amounted to 4,583,521 (30 June 2017:
6,176,992). Given the loss for the period of GBP12.0m (6 months to 30 June 2016: loss
of GBP9.1m loss), these options are anti-dilutive.
5. Share Capital
Allotted, issued and fully paid:
30 June 2018 30 June 2017 31 December 2017
(Unaudited) (Unaudited) (Audited)
Number of ordinary 139,283,371 138,623,360 138,631,020
shares
Nominal Value per GBP0.001 GBP0.001 GBP0.001
share GBP
Share Capital GBP139,283 GBP138,231 GBP138,631
6. Share based payment charge
The Group recognised a charge of GBP0.1m related to share based payments during the 6
months to 30 June 2018 (6 months to 30 June 2017: GBP0.0m), all of which relates to
equity-settled schemes. A charge of GBP1.8m was recognised during the year 2017.
The Company issues equity-settled share based payments to certain employees,
whereby employees render services in exchange for shares or rights over shares of
the parent company. Equity-settled awards are measured at fair value at the date of
grant. The fair value is calculated using an appropriate option pricing model and
is expensed to the Statement of Total Comprehensive Income on a straight-line basis
over the vesting period after allowing for an estimate of shares that will
eventually vest.
The number and weighted average exercise prices of share options are as follows:
Weighted Number of Weighted Number of Weighted Number of
Average Options Average Options Average Options
Exercise Exercise Exercise
Price Price Price
30 June 30 June 2017
2018 2017
To 30 June To 30 June 2017
2018 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited)
GBP GBP GBP
Outstanding GBP0.519 5,642,703 GBP0.001 419,171 GBP0.001 419,171
at the
beginning
of the
period
Granted - - GBP0.139 23,501,954 GBP0.139 23,549,72
during the 6
period
Forfeited GBP0.485 (419,194) - - GBP0.566 (574,401)
during the
period
Exercised GBP0.001 (639,988) GBP0.001 (17,744,133 GBP0.001 (17,751,7
during the ) 93)
period
Lapsed - - - - - -
during the
period
Outstanding GBP0.595 4,583,521 GBP0.527 6,176,992 GBP0.519 5,642,703
at the end
of the
period
Exercisable GBP0.001 837,450 GBP0.001 221,900 GBP0.001 1,000,755
at the end
of the
period
The weighted average share price at the date of exercise of share options exercised
during the period to 30 June 2018 was 125.03p.
The options outstanding at the period end have an exercise price in the range of
GBP0.001 to GBP1.012 and a weighted average contractual life of 10 years.
Awards are categorised with reference to different fair values calculated for each
agreement.
The fair value of employee share options is measured using a Black-Scholes model.
Measurement inputs and assumptions are as follows:
Award 1 Award 2 Award 3 Award 4 Award Award
5 6
16 Jan 17 16 Jan 17 23 Jan 17 25 Jan 17
26 Jan 20 Feb
17 17
GBP GBP GBP GBP GBP GBP
Share Ord C Ord Ord Ord Ord Ord
class
Fair GBP0.06 GBP0.10 GBP0.10 GBP0.10 GBP0.10 GBP0.10
Value at
Grant
Date
Exercise GBP0.001 GBP0.001 GBP0.001 GBP1.012 GBP0.001 GBP0.001
Price
Expected 103% 103% 103% 103% 103% 102%
Volatili
ty
Option 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs
Life
Risk 0.200% 0.200% 0.235% 0.276% 0.300% 0.148%
free
interest
rate
For the purpose of calculating the share based payment charge, awards made between
21 February 2017 and 18 May 2017 have a fair value of GBP0.96 with reference to the
investment on 15 March 2017.
Subsequent awards fair value is determined in reference to the market share price
at the date of grant.
ISIN: GB00BYWMFT51
Category Code: IR
TIDM: EVE
LEI Code: 2138007BAC29AUXWQE6
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited
reviews
Sequence No.: 6043
EQS News ID: 725439
End of Announcement EQS News Service
(END) Dow Jones Newswires
September 20, 2018 02:02 ET (06:02 GMT)
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