InnovaDerma PLC (LSE:IDP)’s broker, finnCap, was broadly positive on the progress made by the maker of the Skinny Tan tanning range as it repeated its 90p a share price target.
Mid-afternoon, the shares were down 5% at 37p after it updated on first-half trading trends.
InnovaDerma said it was optimistic it will return to profitability this financial year as its turnaround strategy gains traction.
With the focus on profitable sales and the prioritisation of it Skinny Tan brand, turnover for the first half of its financial year fell to £3.7mln from £4.1mln.
The business has undergone a ‘radical simplification’ while management continues to focus on ‘rigorous cost control’, investors were told.
It said its focus on Amazon as a sales platform and its ‘exciting’ collaboration with Love Islander Liberty Poole were both ‘delivering strong benefits’.
However, there was some caution around the commercial effect of the latest Covid strain.
“Overall, the current year is expected to continue to benefit from the strategic and operational initiatives implemented by the new management, who continue to target a return to profitability in the current year,” said finnCap.