Cellular Goods PLC (LSE:CBX) saw its streamlining programme result in a cost base reduction of 56% for its first half ending February 28, 2023, which helped to reduce year-on-year operating losses by 24% to £1.81mln, or -36p per share.
The company said its revenue for the first half increased by 140% to £31,000 helped by an expanded product range, with the introduction of three new rejuvenating skincare products and a gift set collection for the festive season.
Additionally, the cannabinoid-powered skincare company signed international supermodel and former Miss Universe Denmark Helena Christensen to be the face of its 'Rejuvenating Skincare Campaign' with over one million social media followers.
Cellular Goods also entered a new market with the shipping of its products to the US from September 2022.
Net cash as of February 28 was £2.93mln compared to £7.41mln at the end of the first half of 2022.
During the period, the company terminated negotiations related to its proposed acquisition Cannaray Brands and Love CBD Health from Cannaray Limited as changes in the deal led the board to conclude it was not in the best interests of shareholders to proceed.
Commenting on the results in a statement, Cellular Goods chairman Darcy Taylor said: "Despite industry headwinds, we have benefitted from a positive sales momentum in the first half that has continued into the second half. In combination with a significant rationalisation of our cost base and cash burn, we have defined a path to drive our brand business forward.
"We are continuing to assess strategic opportunities to deliver long-term shareholder value and will assess each opportunity on its merits. In the meantime, our focus will continue to be to execute the company's existing business model and position it for long-term growth."