World High Life PLC (LON:LIFE) said it has significant sales growth during the coronavirus (COVID-19) pandemic.
In its results statement for the year to the end of June, 2020, the investment company focused on the cannabidiol (CBD) health and wellness space said online sales in July were 57% higher than they were in June.
The focus at its Love Hemp subsidiary is on increasing market share in the UK and continental Europe. Work is underway on a new production facility that will provide additional capacity to expand beyond Europe.
The directors said they believe that Love Hemp is “exceptionally well positioned” with its expertise, brand and team to be a global leader in the CBD health and wellness space.
From the date of the close of the acquisition of Love Hemp on October 18, 2019, to June 30, 2020, the combined operation has recognised £1.69mln in revenues and achieved overall gross margins of 57%. World High Life had no revenues in the previous year.
The company made an underlying loss (EBITDA) of £3.33mln, while the reported loss for the year was £12.67mln, versus a loss the year before of £79,128, after the company wrote down the goodwill associated with its acquisition of Love Hemp by £7.43mln to reflect the uncertainty caused by the pandemic.
The year to the end of June also saw World High Life pay out £1.17mln in consulting fees and £669,177 in professional fees in relation to admission to the AQSE Growth Market in September 2019.
The group said it remains on the hunt for new investment opportunities.
“The World High Life team has extensive knowledge in the CBD Health and Wellness, and the medicinal cannabis industries, along with an extensive global network. Those strengths are being put to use in identifying and assessing potential investments that the Directors believe can add significant shareholder value,” the company said in the annual results statement.