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Shares in AIM-listed eve Sleep (LON:EVE) shot up by 17.51% to 20.80p after the company announced a 63% improvement in revenues for the first half of the year. However, pre-tax losses for the six months ended 30th June deepened to £12 million as margins fell by 600 basis points.
After the close of the period, the business implemented marketing and overhead cost cutting measures as it refocused on core markets in the UK, Ireland, and France. The company also launched a partnership with Dreams in July that has performed ahead of expectations and trading in the first two months of the second half is up by 40%.
Chairman Paul Pindar 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.”