InnovaDerma PLC (LON:IDP) said it remains “confident” consumption levels for its products will “return quickly” as the UK’s eases Coronavirus (COVID-19) lockdown measures ahead of peak tanning season.
In an outlook statement accompanying its final results, the maker of beauty and personal care products said it will emerge from the COVID-19 pandemic as a “stronger, more digitally agile business”, adding a £4mln fundraising announced post-period end will enable it to fund additional investment and “benefit from the substantial growth opportunities anticipated for 2021 and beyond”.
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“I do believe though that there are many reasons to be very positive about 2021 and beyond. The entrepreneurial foundations of the business are strong with key strengths in new product development and digital marketing. In the UK we do expect tanning consumption to return to historical levels as restrictions ease. Moreover, as Skinny Tan continues on its growth trajectory in international markets such as the US and Australia, we will be able to demonstrate both the international potential of this brand and our E-commerce model. Finally, the initial consumer reaction to our new products for 2021 has been excellent”, chief executive Blake Hughes said in a statement.
In its numbers for the year to December 31, InnovaDerma reported revenues of £4.1mln compared to £5.1mln, while its pre-tax loss widened to £1mln from £0.3mln in 2019.
The company said revenues had been adversely impacted by COVID-19, while the pandemic had also dented its gross profit margins, which fell to 49.9% from 60.7%.
"There is no doubt that the impact of COVID-19, and its associated restrictions, has had a material impact on the company's performance in 2020. In the tanning category the decreased social interaction has led to a marked decline in category usage, especially in the UK…This challenging period for the business has led us to sharpen our strategic focus and to review our overall operation…We are confident that we will emerge from the pandemic as a financially stronger business, with a road map for sustained future growth", Hughes said.