InnovaDerma PLC (LON:IDP), maker of the hugely successful Skinny Tan beauty range, said it remains confident of meeting market expectations for the year and has much greater visibility on revenues for the second half than it has in the past.
The update came in a trading statement that covered the six months ended December 31 in which it said turnover grew by 31% on a constant currency basis to £4.2mln.
READ: InnovaDerma delighted by “positive market” for its products as it gears up for busy start to 2018
The company described as “excellent” direct-to-consumer sales of Skinny Tan here in the UK, although the momentum should be aided significantly by the product’s launch by retail partners alongside line extensions.
Roots doing well too
Roots, the hair care brand, is growing in popularity and performed strongly, InnovaDerma said, while new cosmetic, skincare and life sciences brands are expected to be introduced this year.
It should be remembered the business’ results are second-half weighted as sales and profits are boosted as we move into spring and summer, or “peak tanning season” as company refers to it.
“The board remains confident in meeting market expectations for the current financial year and has much greater revenue visibility for the second half than in prior years,” InnovaDerma told investors.
Broker confident
Shares, up 30% in the last year, succumbed to a bout of profit-taking as they fell 38.5p to 229p. The small-cap broker finnCap reckons the stock is worth 400p, meaning the price would have to rise 75% to hit this target.
It is keeping its estimates intact after the latest trading update, which means it is expecting revenues of £13.8mln for the current year, rising to £19.7mln and then £23.7mln.
This would give underlying earnings (EBITDA) of £2.4mln, £4mln and £4.8mln respectively