InnovaDerma PLC Trading Statement (1145E)

TIDMIDP

RNS Number : 1145E

InnovaDerma PLC

02 July 2019

LEI: 213800WRAP6W8VDL6B38

InnovaDerma PLC

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

Trading Statement

InnovaDerma (LSE: IDP), a UK developer of beauty, personal care and life science products, provides a trading update for the 12 months ended 30 June 2019.

The Board is pleased to announce that the Group has traded strongly and results are in line with expectations for the full year.

Revenue increased by 21% to c. GBP13m in FY2019 (FY2018: GBP10.7m) and profit before tax is expected to be in line with expectations, more than doubling from last year (FY2018: GBP0.67m). Gross margins improved significantly, with a c.500bps increase year-on-year as a result of our strong focus on stock and supply chain optimisation.

The growth in profit reflects the agility of our business model, which enables us to scale our stable of brands without incurring corresponding increases in overheads.

All our brands performed well and delivered both revenue and profit growth in the period under review. Skinny Tan in particular contributed strongly, driven by innovative new product launches including "Wonder Serum" and "Protect and Glow" at premium price points and the significant increase in the retail footprint for our core brand which is now available in 2,300 retail stores (FY2018: 1,000) including Boots, Superdrug, and Asda.

The Group's balance sheet has strengthened during the period with strong cash generation from retail customers increasing stock cover and continued working capital controls. This has led to better than expected cash position in excess of GBP1.7m.

The Company will announce its final results in September 2019.

Haris Chaudhry, Executive Chairman of InnovaDerma said:

"I am very pleased to report our full-year revenue will reflect growth of approximately 21% and we expect PBT to be in line with expectations with profit more than doubling from last year. The Group has made excellent progress during the year, delivered a strong financial and operational performance, which demonstrates our scalable business model and resilience in a challenging retail market. Going forward, we will be focused on product innovation, launching our brands in new territories and entering into new categories with new product launches; the combination of which we believe will further accelerate growth during the new FY. The Board is very excited for the future and the opportunities which lie ahead."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

Further enquiries

 
 InnovaDerma 
  Haris Chaudhry/Joe Bayer               [phone] 
  Kieran Callan c/o TB Cardew            [phone] 
 finnCap Ltd 
  Geoff Nash/Giles Rolls/Kate            [phone] 
  Bannatyne                              www.finncap.com 
  Alice Lane Ð Corporate 
  Broking 
                                      --------------------------- 
 TB Cardew 
  Shan Shan Willenbrock/Tom Allison      + 44 (0)20 7930 0777 
  Joe McGregor                           [e-mail] 
                                      --------------------------- 
 

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July 02, 2019 02:00 ET (06:00 GMT)