Koovs posts improved trading update, announces additional funding

Koovs, the online retailer catering to the Indian market, reported improvement on its trading on Tuesday and announced it would be receiving extra funding.

The company’s gross order value (GOV) stood at 12.8 million for the year ending March, compared to 14.8 million pounds for the previous year. GOV in the second half of the year, however, increased by 8 million pounds, up from 6.9 million pounds the previous year. Trading margins at the company increased to 18 percent, compared to 14 percent the year before, while web traffic was up 50 percent at 75.9 million compared to 2018. Its social media base increased to 2.7 million followers.

The company said in its trading update: “Over the last 18 months, the board has demonstrated its experience and expertise, taking the decisions necessary to protect the Koovs brand and to conserve resources during a period of turmoil caused by demonetisation and the implementation of Goods and Services Tax (GST); this included reducing marketing costs and stock levels. The business has now emerged from this period and is well positioned to deliver on its growth strategy.”

Evidence for this, the company said, was seen in the first three months of 2019, where GOV increasing by 67 percent to 4.4 million pounds compared to the same period in 2018.

The company also announced it has reached a binding agreement, subject to shareholder approval, with Future Lifestyle Fashions Limited (FLFL), part of Future Group, on the mechanics for which FLFL will invest the balance of additional funding of approximately 10.5 million pounds into the company to support Koovs’ growth strategy.

Mary Turner, chief executive officer at Koovs, commented in the update: “The external factors that disrupted our business are now firmly behind us. We have deployed the funds raised in 2018 to resume marketing activities and expand the product range - this was the driving force behind the growth in sales and trading margin experienced in the second half of the year.

“We are now building on this positive momentum and are starting to deliver the growth we always believed the Company is capable of.”

Photo credit: Koovs, Facebook