Good morning!

I'm in an airport restaurant, hoping that nobody notices I haven't ordered anything. There's only a few minutes until I have to go to the departure gate - let's see how much I can cover.



Clear Leisure (LON:CLP)

Interim Results

This name has been knocking around for a long time. It's now an investment company with NAV of just E1.5 million (denominated in Euros because of its investments in Italy). It's highly leveraged,  borrowings on today's balance sheet of over E6 million.

Unless it raises a lot of new money, I don't see how it can stay listed for that much longer. The Board has the authority to issue shares with nominal value of up to £500k, but the share price as of last night is trading below nominal value (0.25p). Doesn't that make issuing new shares sort of tricky?



eve Sleep (LON:EVE)

  • Share price: 4.9p (pre-market)
  • No. of shares: 261 million
  • Market cap: £13 million

Cessation of merger talks, trading update and lifting of suspension

This company sells mattresses online. It has a strong track record of unprofitability.

Merger - abandoning merger talks, and its shares can trade again.

Trading update- it says brand awareness has improved by 50%, from 10%. So I guess that means we are at 15% now.

Then it gives us the bad news:

...overall trading has been more challenging than previously anticipated owing to the uncertain economic outlook and continuing low levels of consumer confidence. This economic backdrop combined with heavy discounting and promotional activity from our competitors has led the board to conclude that 2019 revenues are now likely to be in the range of £25m-£27m.

According to the StockReport, 2019 revenues were supposed to be £35.3 million (up from £34.8 million in 2018). If that is the most recent forecast, this is a savage sales miss.

Through cost-cutting, the company still hopes to make a reduced loss this year, compared to 2018.

CEO comment:

The opportunity to create a leading sleep wellness brand remains undiminished and I am confident that eve's rebuild strategy, centred around a differentiated brand…

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