Eve required £5m further investment as it lost almost as much as it sold last year
Online mattress retailer Eve required one of its early investors to invest a further £5m in March to support the loss-making business.
Its pre-stockmarket flotation documents show that Eve needed City fund manager Neil Woodford to ‘fund the Company’s short-term cash requirements and was made to protect the investor’s original investment while the business sought a longer-term funding solution’.
Eve has raised £35m from the listing on AIM, and shares are expected to begin trading on Thursday. The company generated sales of £11.97m in 2016 from 32,007 orders but lost £11.34m.
Sales in the UK were £7.73m, continental Europe £3.15m and the rest of the world £1m. Average order value was £423 in the second half of 2016.
The company offers a 100 day return policy on mattress it sells those sold through Amazon are limited to a 30 day period) and 15% of consumers returned the mattress.
The cost of capturing each order increased from £176 to £245, driven by the introduction of major marketing campaigns, including TV. It says the cost in the UK has fallen from £350 in September 2016 to £250 in March 2017: it has targeted a figure of £100 in the UK ‘in the medium term’.
Eve’s mattresses are manufactured in the UK primarily for delivery to the UK and France by Duflex Foam, part of Belfield Furnishings. The mattress is manufactured in Germany primarily for delivery to Germany, Spain, Poland, Italy, Switzerland, Austria, the Netherlands and all other EU markets by Frankenstolz and in the US for delivery to the US by FXI.