Koovs PLC Second Quarter Trading Update (3932R)

TIDMKOOV

RNS Number : 3932R

Koovs PLC

29 October 2019

29 October 2019

Koovs plc

("Koovs" or the "Company")

Second Quarter Trading Update

Koovs plc (AIM: KOOV), the Western fashion experts for online Indian consumers, provides an update on its trading performance for the three months to 30 September 2019, being the second quarter of its 2020 financial year ("Q2 2020").

Key Q2 2020 Highlights

   --     Gross Order Value ("GOV") increased by 100% to GBP5.0m (Q2 2019: GBP2.5m) 
   --     Trading margin* increased to 12% (Q2 2019: 7%) 
   --     Website traffic up by 69% to 27.3m visits (Q2 2019: 16.2m) 
   --     Conversion rates of 1.3% (Q2 2019: 1.1%) 

The second quarter of the current financial year has seen a continuation of the strong growth in website traffic and GOV. This represents the completion of three consecutive quarters of growth in our key performance metrics set out above and is a clear indication of the strength of the Koovs' underlying business model.

Update on FLFL Subscription and Near-Term Strategy of Company

As announced on 21 October 2019, Koovs was informed by Future Lifestyle Fashions Limited ("FLFL") that the Reserve Bank of India (the "RBI") now requires FLFL to reapply for approval prior to completing its outstanding GBP6.5 million investment into Koovs. FLFL has confirmed to the Company that it is in the process of reapplying for this approval and has confirmed its commitment to honour its investment into Koovs, whether through the existing mechanism (through the issue of compulsory convertible preference shares) or, to the extent available, an alternative route should the approval not be forthcoming.

The Company is working with FLFL to secure the committed investment, alongside considering other fundraising options available to the Company, in the event the RBI approval process is not completed within the coming weeks.

The Board has also determined to implement certain cash conservation measures, primarily in relation to reducing stock purchases and marketing spend, with the intention of ensuring there is the maximum time available for the various options available to the Company to be considered.

The Board will make further announcements as and when appropriate, and in the meantime notes that the other commercial initiatives in place between FLFL and the Company continue as normal.

* As previously disclosed, trading margin is the implied gross margin that would be reported in the Group's accounts if Koovs India were able to ship products directly to the end consumer and is a key performance indicator of the Group.

END

For further information please contact:

Koovs plc

Mary Turner / Robert Pursell

[e-mail]

Strand Hanson Limited (Nominated & Financial Adviser)

James Harris / Ritchie Balmer / Georgia Langoulant

Tel: [phone]

Canaccord Genuity (Joint Broker)

Georgina McCooke / Alex Aylen

Tel: [phone]

Whitman Howard Limited (Joint Broker)

Nick Lovering (Corporate) / Mark Murphy (Institutional Sales)

Tel: [phone]

Media enquiries:

Newgate Communications

Clotilde Gros / Adam Lloyd

Tel: [phone]

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Notes to Editors:

About Koovs

-- Koovs is a UK business that has built KOOVS.COM into India's leading online western fashion destination. Koovs' fashion brands are designed and developed in London exclusively for the young Indian fashion market where two thirds of the population are under the age of 35. It has 2.7m following and half a million active customers.

-- The tremendous potential of the Indian fashion market has been further underlined by the Strategic Partnership with Future Lifestyle Fashions Limited (FLFL) which is part Future Group - one of India's leading retail businesses and one of the top 10 fashion apparel companies in the world

-- Koovs' proprietary online technology platform powers KOOVS.COM and is a proven market-leading success in India's rapidly expanding e-commerce market. The capability and scalability of the platform has been recognised by FLFL which has contracted Koovs to build and maintain the online platform for its Brand Factory retail format. For more information, please visit www.koovs.com and follow us on Facebook, LinkedIn, Twitter @mykoovs and Instagram @koovsfashion.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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October 29, 2019 03:00 ET (07:00 GMT)