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Fashion & brands

Koovs racks up sales jump but fashion retailer still faces investment uncertainty

The £6.5mln investment by Future Lifestyle Fashions Limited, announced in July, is looking shaky as Reserve Bank of India has required the investor to reapply for approval

Koovs PLC (LON:KOOV) is staying bang on trend, with the fashion retailer doubling its gross order value, although it faces uncertainty over a recent stake purchase by an investor.

In a second-quarter trading update on Tuesday, the India-focused online clothing company said that visits to its website grew by 69% to 27.3mln, which led its orders to rise to £5mln from £2.5mln in the same period last year.

The London-listed company’s trading margin also rose to 12% in the three months to 30 September 2019, up from 7% in the second quarter of 2019.

In July, Future Lifestyle Fashions Limited (FLFL) agreed to purchase a 29.9% stake in the company for £6.5mln, sending Koovs share price rocketing by over a third.

After a Reserve Bank of India (RBI) announcement in October that it required FLFL to reapply for approval of the deal, the investor has begun reapplication and remains committed to honouring its investment by the agreed means or another mechanism, Koovs said.

The company also said it is considering other fundraising options in the event the RBI approval process is not completed within the coming weeks.

After opening higher, Koovs shares had drifted back by lunchtime, down 0.8% at 3.0p.