Koovs, an e-commerce retail business expanding in India, grew its sales last year, but was hit by a share sell-off this morning.
In its trading update for the financial year ending 31 March, Koovs said its sales grew 87 per cent to £18.6m, a figure representing the value of the gross sales orders placed through Koovs' website, rather than the revenue of the group. Koovs did not provide a separate figure for revenue, or profit, in its trading update.
When Koovs reported interim results in December last year, it announced a loss before tax of £9.1m, up from £5.7m for the same period a year before.
The group also said today it boosted its social following to above 2m people, although the key will be making sure more followers means more sales.
At time of writing, Koovs' share price was down 6.73 per cent.
Why it's interesting
Aim-listed Koovs targets young, fashion-forward consumers in India, but is based in London, where its design and buying teams work on the website's products. All other operations, such as distribution centres, are based in India.
The business said it was hit by demonetisation in India last year, but that it had taken a "proactive approach on customer payment and delivery options". It emerged in 2016 that Koovs was forced to arrange for consumers to make credit card payments, rather than give cash on delivery.
What Koovs said
Waheed Ali, chairman of Koovs, said: "India is now well-established as the fastest growing economy in the world. Koovs' authentic global fashion is the right proposition at the right time in this major market and there remains huge confidence for its continued growth."