Eve Sleep has narrowed its half-year losses despite suffering a fall in sales during the first six months of its financial year.
The online mattress specialist said underlying EBITDA losses were slashed 80% to around £1.2m during the six months to June 30 – ahead of board expectations.
That bottom-line improvement came despite a 5.1% drop in sales to £12.2m during the period. Eve said revenues remained ahead of expectations following “strong” trading during May and June.
The etailer insisted that momentum had continued into July as it capitalises on a “strong” homewares market.
Eve generated a positive cashflow of £1.1m – the first time the business has ever done so during a six-month period – but it admitted its cash balance had been “flattered” by £500,000 in government coronavirus support.
Boss Cheryl Calverley said Eve was “well placed to benefit from the accelerated shift to online ordering” sparked by the health emergency.
Calverley added: “Trading through this complex period has been robust and ahead of our previous expectations, and for the first time we have generated positive cash flow over a sustained period.
“Our goal of profitability draws ever closer as we continue to deliver our rebuild strategy, underpinned by growth in customer numbers, an increasing contribution from wider sleep categories and improved marketing efficiency.”
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