Thursday 15 November 2018 9:30 am

Eve Sleep shares skyrocket on fresh fundraising plans

Shares in mattress maker Eve Sleep have soared almost 24 per cent this morning, after the company provided an update on its business strategy under its new chief executive.

Eve Sleep said it will raise approximately £15m of new equity "to fund the company's refocused strategy through to profitability", which will launch prior to the end of 2018.

The business review, revealed in September, will double down on Eve Sleep's core markets in the UK, France and Ireland with a broader product range, rather than challenging geographical and sector expansion. To this effect, the company plans to hire a marketing chief in the coming months.

Boosting confidence in the move, Eve Sleep added that it has already received material levels of support for the fundraising at a price that is "significantly higher" than its prevailing share price. Profitability is now expected in 2020.

The news comes just days after shares in Eve Sleep hit a 12-month low on Tuesday, falling to 13.05p per share. Conversely, its share price rose as high as 18.90p this morning. 

Under ex-Moonpig boss James Sturrock's guidance as its new chief executive, Eve Sleep has had a rocky few months to recovery.

With six weeks of its current financial year remaining, the company reassured shareholders today that it expects to deliver revenues in line or above its full year guidance, after it was revised down earlier this year by its former chief executive and founder Jas Bagniewski.

Bagniewski stepped down from the firm in the immediate aftermath of the downgrade in July, which saw Eve Sleep's share price crash at least 60 per cent in a single day.

Sturrock said today: "The business review has reaffirmed my initial confidence in the size of the opportunity in the sleep market and Eve's ability to realise it. It will however require further investment than originally expected."

"While we have revised our short term growth ambitions during this period of consolidation and investment, we anticipate a marked improvement moving into 2020 and beyond. Eve has an exciting future ahead and we look forward to putting the business on a stronger footing."